TALK TO AN EXPERT NOW

Nassau County: (516) 342-4849
Suffolk County: (631) 302-1940

TALK TO AN EXPERT NOW

Nassau County: (516) 342-4849

TALK TO AN EXPERT NOW
Suffolk County: (631) 302-1940
How Does Property Assessment Relate to Your Property Tax Bill?

How Does Property Assessment Relate to Your Property Tax Bill?

Taxes are an inescapable fact of life. If you’re a property owner in New York, property taxes form a big part of your tax liability. Property tax is paid on property owned by individuals or other legal entity and varies from one state to the other. This tax liability depends on the market value of your property.

The basis of property tax is the property value, which the authorities get from the property tax assessment. It’s important to understand the details of the property tax assessment process because it directly affects your tax bill. New York has the highest tax rates as residents spend almost 13.8% of their annual income on state and local taxes.

It’s important to remember that failure to pay property taxes, penalties, and accrued interest could lead to loss of your property. For these reasons, it’s important to learn more about all factors affecting your tax deductions and the tax grievance process.

This post examines property tax assessments, their effect on your property tax liability, and how to handle the process.

How is Your Property Tax Calculated?

Property tax is primarily based on the property’s value. The property value varies from year to year and is determined on a specific date of the year. The intervals of value assessment vary in different jurisdictions. While in some areas the assessment is done annually, in others the process is done during property transfers.

In New York, property tax is determined using the assessed value. To calculate the annual property tax in New York, you multiply the taxable value of your property by the tax rate (mill rate) for the property’s tax class. The rate changes every year. For example, in NYC, the average effective property tax rate is 0.88% but rises to 1.69% statewide.

The authorities can carry out a property assessment in three ways:

  1. The replacement method/ cost method
  2. The sales comparison method/ the market approach method
  3. The income method for business properties

Exemptions are subtracted from the assessed value to give the taxable value. The tax authorities apply the tax rate to the taxable value to show what you owe in taxes. New York State residents’ exemptions include the State School Tax Relief Program, or STAR, and the homestead property exemption to lower the amount of their home’s value they are taxed on.

When determining property tax, New York state authorities consider public goods and services. Public goods include facilities like public schools, and parks, sewer lines, and roads. Public services include police services, fire services, garbage pickup and recycling.

Each of these public expenditures form a component of the applicable tax rate. Due to such calculations, there are cases where the assessed value of a property can differ from the actual value of the property in the market.

If you feel the property assessment is not right or seems too high, you have a right to appeal the assessment. To do this successfully, you need the professional services of a tax expert.

What Makes Your Property Tax High or Low?

The biggest factor in determining property tax is the assessed value of your property. The other crucial factor in your property tax bills is the use of the property. For instance, are you using the property for residential, commercial, rental, agricultural, or is it vacant land? Some properties such as churches and charity offices might be exempt from taxes.

The tax multiplier is applied uniformly for property in the same category but differs from one category to the other. While the tax multiplier is uniform in the same category, there are other factors that affect the final tax figure. These include location, size, age, and architecture. Your property tax bill changes from year to year depending on fluctuations in perceived market value.

Using a Tax Expert in Property Assessment

A favorable assessment is crucial if you want to lower your property tax bill. The smartest move is to use a tax expert to file any grievance against property tax issues. A property tax expert understands property taxation laws, regulations, and deductions, assessment laws at both state and federal levels.

Tax professionals help in the following ways to ensure a favorable property tax assessment:

  1. Tax rates/market values: Your tax advisor ensures that you understand the tax rate and the market value that the assessor is using to calculate your tax assessment. If one of these factors is wrong, you are free to appeal.
  2. Analyze the assessment for errors: A tax expert ensures the information on your property card is correct. They check government records relating to your property- location, size, dimensions, use, etc. These professionals ensure your information is up to date and point out any discrepancies that impact your assessment negatively.
  3. Review comparable properties: If you file a tax grievance, your tax advisor helps review data pertaining to the comparable properties used in the assessment.
  4. Consultancy: A property tax expert offers advice in reducing your tax burden. For instance, they advise you to avoid building before an assessment. Home improvement projects like a pool or a garden shed improve the value of your home, and hence a higher tax assessment may be levied. Avoid building permanent structures before an assessment. They also advise regarding your home’s curb appeal, which is highly subjective.
  5. Advice on your role: The tax expert might advise you to act as a “tour guide” for the assessor to ensure they see the whole picture to avoid bias.

If you have an issue with the assessed value of your property in New York, you can file a tax grievance. The best approach is to use a tax grievance company, which will have the expertise and resources to help you achieve positive results.

Heller & Consultants is a tax grievance firm with decades of experience across Nassau or Suffolk counties, New York. We have worked with thousands of aggrieved property owners over the years to get favorable property tax assessments.

Contact our team today for dedicated advice on your property assessment in Nassau and Suffolk counties, New York.

 

 

Nassau County to Begin Annual Property Assessments

Nassau County to Begin Annual Property Assessments

In January 2020, Nassau County began sending out new property assessments that had previously not been scheduled to arrive. This is because it was recently decided that annual property assessments will now be taking place in Nassau County. This can be either really great or heartbreaking news, depending on how this impacts your taxes. Below, we will cover all that you need to know to be ready for this change.

What Does This Mean?

Property assessments are what the government uses to help calculate your property tax rate. With new sets of assessments comes an increase or decrease in your taxes. Don’t take this change lightly. As one Nassau County resident said, “my taxes are going to go up 60%” However, there are also those who will be paying lesser amounts of taxes this year due to a declining property assessment for their home.

Who Will This Impact?

Anybody who pays property taxes in Nassau County should expect a change in their tax bill this year. Since the county has decided to re-assess the value for all homes in the area, everybody should expect tax changes. This will likely also trickle down to renters whose landlords are all of a sudden slammed with new tax increases. Those who have previously won tax grievance cases may now have to jump through another hurdle to ensure that they can keep the same fair assessment rate.

Why Is This Being Done?

Nassau County pledges to keep property values as current as possible on their records. When you add in 1.5 million residents, things can get tricky really fast. Especially when there are long delay times between property assessments. The idea here is that with annual property assessments home values can stay as up-to-date as possible.

Can You Still Grieve This Year’s Assessment?

Grievances for the current tax year officially ended on April 1. Therefore, unless you already formally filed your appeal, you will need to start planning for doing this for the next tax year. As we have seen throughout history in the county, those who file for tax grievances will often save lots of money on property taxes. The impacts this trend will have on the future are still yet to be seen.

Need Help with Property Tax Grievances?

If you believe that your new official property assessment is inaccurate, you have the right to file for grievances. It is fair for you to expect to pay your fair rate of taxes, and not a cent more. Here at Heller & Consultants Tax Grievance, we will work with you to formally appeal your property assessment. Best of all, we won’t charge you a dime until we help you win your case and lower your property taxes! Contact us today to see if we can help you.

How High Are School Property Taxes in Long Island?

How High Are School Property Taxes in Long Island?

Before you move into a new location, checking up and doing some research on the taxes you will pay is a very responsible thing to do. Here is New York, Long Island is one of the popular places for people to buy property and move to. However, school property taxes are something that you should be ready for. Below, we will cover what you need to know about the school property tax rates in Long Island.

There are Two Long Island Counties

For starters, you need to be aware that Long Island is broken into two separate counties. These counties have different property appraisal processes and authorities. The tax bill also includes prices you need to chip in for your local school district.

Suffolk County

School taxes are in the same annual tax bill. This way, you won’t have to expect separate taxes for property and school taxes. The median property tax bill in Suffolk County tends to be right around $9,500. Keep this information in mind while determining which county of Long Island will serve your needs the best. Note that this also includes the price needed for school property taxes.

Nassau County

In Nassau County, the median property tax bill is $14,872 according to state sources. In other words, the price of living in Nassau County will be much higher, on average, when taxes come in question. Especially if you live in an expensive district.

Rises are Capped by the State

Regardless of where you end up choosing to buy property, you should know that the school tax rate is capped in the state of New York. This rate is capped at a steady 1.8% rate for the 2020-2021 fiscal year. Therefore, prepare for rises in at least this percentage each year indefinitely at your new property location.

Your School Property Taxes Depend on Your County & District

To make a complete tax estimate, you will need to know which county and school district that you fall into. As we broke down above, living in Nassau County often means that you will pay larger amounts of taxes than those who live in Suffolk County Property Taxes.

Living in a Successful School District Can Be Costly

Syosset Central is a very successful schooling district located in Nassau County. Therefore, if you live in a district like this which constantly receives A+ ratings across the board, plan on paying the extra cost when it comes time to handle school property taxes!

Doing a Property Tax Grievance Can Save You Quite a Bit on Taxes

One of the best ways that you can minimize your burden of paying taxes is by doing annual property tax grievances. How this works is simple. Properties often receive appraisal values that are higher than their actual cost. When this happens, you will end up paying higher amounts of taxes. Therefore, consider hiring a company like Heller & Consultants Tax Grievance that don’t charge anything until they successfully lower your taxes.

Don’t Forget About Property Taxes When You Are Looking to Purchase a New Home

Don’t Forget About Property Taxes When You Are Looking to Purchase a New Home

When you purchase a home, you have many expenses to consider including the mortgage & interest rate costs, homeowner’s insurance costs, utility charges and property taxes. Property taxes are paid every year, and the amount you owe can change from year-to-year based on your home’s perceived value (as well as the government’s financial needs).

Property taxes in New York have been on the rise year to year for a while now. So if you are considering buying a home in New York, you should account for the fact that your property taxes will more than likely steadily increase – especially if you make improvements to your home.

If you will have a mortgage you will more than likely have to pay property taxes into an escrow account along with your monthly mortgage payment. Your mortgage holder will then pay the taxes from that account. This may affect your purchasing power depending on your monthly budget.

Property taxes pay for local services like schools, police, emergency services, parks, and more – which might make paying higher property taxes worth your while. Higher tax rates might translate into a better school district, which for many young families is a major deciding point when buying a new home.

Let’s look a bit closer at how property taxes are calculated to better understand how your tax rate can be an important factor when choosing the right home to purchase.

Calculating Property Taxes

Property taxes are calculated by your local government as a percentage of your property’s appraised value. Your home’s value can go up and down depending on market conditions, reappraisals, additions or other such factors, and then the amount you owe the government is a simple percentage of that value.

Now, how does the government determine the percentage you owe?

Let’s say that your town has $300 million of assessed property value within its borders, and an annual fiscal budget of $3 million to cover its operations. This means that 1% of the total assessed property value is needed to run the town annually. So, if you live in that town, your tax bill should be 1% of your home’s value.

That number, unfortunately, isn’t set in stone. The next year, the local government might decide to open a new school, build a community rec center or refurbish the fire station, raising its budget from $3 million to $6 million. Now, your tax rate has gone up from 1% to 2%, and besides voting in the next election, there’s not much you can do about it.

In many cases, states limit the assessed value of your property to a percentage of your actual property value. According to The Official Website of New York State,  “all properties in New York (except in New York City and Nassau County) are required to be assessed at a uniform percentage of market value each year. In other words, all taxable properties in your city or town must be assessed at market value or at the same percentage of market value.”

So, if the market value of your home is $500,000, and assessments in your community are at 40 percent of market value, your assessment should be $200,000.

Can I Lower My Tax Bill?

You can check out what property tax exemptions you might be eligible for to lower your tax bill. New York has several exemptions available including STAR (School Tax Relief), a senior citizens exemption, a Veterans’ exemption and an exemption for persons with disabilities.  Don’t forget that you can deduct a portion of your local property taxes up to $10,000 from your yearly federal tax bill.

I’ve Moved into My New Home and I Think My Taxes are Too High

You can have your property value re-assessed to see if you can lower your tax bill. Your tax bill might not be based on the actual value of your home, as it’s impractical to send an appraiser out to every house every year. If you feel like that average value is way off base, you can ask for an appraiser to visit your home to ensure your tax rate is true to the property’s actual value.

If you feel that your taxes are too high after the reassessment inquiry, you can file a property tax grievance. A property tax grievance is a formal complaint filed against a town’s assessed value on a particular parcel of a property based upon comparable sales. You can hire a property tax grievance expert to help you. Reach out to the experts at Heller & Consultants Tax Grievance with any questions relating to your property taxes and to file a property tax grievance.

Not Sure How to Get a Property Tax Reduction in Nassau County?

Not Sure How to Get a Property Tax Reduction in Nassau County?

Don’t worry. Many people are simply too busy with their daily lives to be able to master the industry for getting property tax reductions in Nassau County. Below we will break down some of the basics behind this process and how Heller & Consultants Tax Grievance Group can handle this process for you.

We Can Help You Out

We understand the dilemma of living a normal life with responsibilities can take a toll on your capability to handle things such as property tax grievances. Therefore, we are happy to assist you during this process.

The main idea here is that we will need to file your tax grievance before the Nassau County deadlines. These occur 18 months before the tax year that you want to challenge.

Click here to start with this process

How Often Should I File Tax Grievance?

We advise our clients to file for tax grievances each tax season. As we will discuss with you should you become our client, there are many different reasons for this. The main reason to keep in mind for this, though, is due to the fact that taxes will rise each year naturally. Once you start to see how much money you can save on property taxes, you will want to file grievances each year!

What Are the Risks Involved?

You have nothing to lose, but your taxes. We want you to put your faith in us. To make this possible, we will only charge we successfully win your case. Of course, you will still need to apply with us before we can confidently commit to you.

After taking a good look at your case, we will generally know right away whether or not we think we help you out. Since we have developed over a decade of expertise and helped our clients in the past save over $35 million in property taxes, we are confident enough in our service to only charge you afterward.

Most importantly, we only charge you a proportion of the savings that you receive. This way, both of us can properly benefit. At the end of the day though, the only risk you play is having your Nassau County property assessment remain the same.

Professional Appeals for Your Assessed Property Value

To be clear, we are not able to challenge the total amount of taxes that you pay. You will only be able to potentially receive a lower assessed property value. Once we are able to successfully lower your property’s assessed value, this will reflect in the total amount that you pay in taxes.

Therefore, we are only capable of indirectly lowering your property taxes. This is done by lowering the value of your property in the eyes of Nassau County.

 

How to Get Started

After we decide to take on your case, we will then work diligently file all the necessary paperwork in a timely manner and make any court appearances.

Once we file the paperwork, we will handle all communication with the Nassau County Assessment Review Commission.

You Don’t Pay Until We Win

Although we cannot promise each of our clients a victory and lowered home value, we are confident in our ability to do so. Throughout the years, we have developed quite a bit of knowledge and expertise on how this industry works. This is partially why we will only be in touch with you for billing after we successfully lower your property’s value.

What happens If We Lose?

In the rare event that we lose and your property value remains the same, we will immediately be in contact with you. Keep in mind that this doesn’t necessarily mean that there are no further options. We will discuss things with you such as filing an appeal in the Supreme Court, and any other options that may be necessary afterward.

When Will I Get Billed?

Once we successfully lower your property tax assessment, we will be in touch with you promptly to discuss the total level of savings that you experience. However, you will not be billed until Nassau County publishes your tax bills.

Not Sure How to Get a Property Tax Reduction in Suffolk County?

Not Sure How to Get a Property Tax Reduction in Suffolk County?

Don’t worry. Many people are simply too busy with their daily lives to be able to master the industry for getting property tax reductions in Suffolk County. Below we will break down some of the basics behind this process and how Heller & Consultants Tax Grievance Group can handle this process for you.

We Can Help You Out

We understand the dilemma of living a normal life with responsibilities can take a toll on your capability to handle things such as property tax grievances. Therefore, we are happy to assist you during this process.

The main idea here is that we will need to file your tax grievance before the Nassau County deadlines. These will occur 18 months before the tax year that you want to challenge. If you want to file for tax grievances for this tax season, then you will need to file your forms by the third Tuesday in May.

Click here to start with this process

How Often Should I File Tax Grievance?

We advise our clients to file for tax grievances each tax season. As we will discuss with you should you become our client, there are many different reasons for this. The main reason to keep in mind for this, though, is due to the fact that taxes will rise each year naturally. Once you start to see how much money you can save on property taxes, you will want to file grievances each year!

What Are the Risks Involved?

You have nothing to lose, but your taxes. We want you to put your faith in us. To make this possible, we will only charge we successfully win your case. Of course, you will still need to apply with us before we can confidently commit to you.

After taking a good look at your case, we will generally know right away whether or not we think we help you out. Since we have developed over a decade of expertise and helped our clients in the past save over $35 million in property taxes, we are confident enough in our service to only charge you afterward.

Most importantly, we only charge you a proportion of the savings that you receive. This way, both of us can properly benefit. At the end of the day though, the only risk you play is having your Suffolk County property assessment remain the same.

Professional Appeals for Your Assessed Property Value

To be clear, we are not able to challenge the total amount of taxes that you pay. You will only be able to potentially receive a lower assessed property value. Once we are able to successfully lower your property’s assessed value, this will reflect in the total amount that you pay in taxes.

Therefore, we are only capable of indirectly lowering your property taxes. This is done by lowering the value of your property in the eyes of Suffolk County.

How to Get Started

After we decide to take on your case, we will then work diligently file all the necessary paperwork in a timely manner and make any court appearances.

Once we file the paperwork, we will handle all communication with your Suffolk County Township. For your reference, you have until May 19, 2020, this year to file your tax grievance case. Unfortunately, nearly 90% of cases filed with Suffolk County Assessors will be denied and an appeal in New York Supreme Court will be necessary.  In court is where your reduction would most likely decided.

You Don’t Pay Until We Win

Although we cannot promise each of our clients a victory and lowered home value, we are confident in our ability to do so. Throughout the years, we have developed quite a bit of knowledge and expertise on how this industry works. This is partially why we will only be in touch with you for billing after we successfully lower your property’s value.

What happens If We Lose?

In the rare event that we lose and your property value remains the same, we will immediately be in contact with you. Keep in mind that this doesn’t necessarily mean that there are no further options. We will discuss things with you such as filing an appeal in the Supreme Court, and any other options that may be necessary afterward.

When Will I Get Billed?

Once we successfully lower your property tax assessment, we will be in touch with you promptly to discuss the total level of savings that you experience.   You will not be charged until your tax reduction is legally completed.

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