1. Nassau County Disputed Assessment Fund
Class 4 Properties

2. Nassau County Guarantee
Nassau County is the assessing jurisdiction
Taxing jurisdictions budget and receive taxes
Nassau County is responsible to pay tax refunds for successful assessment challenges for all taxing jurisdictions (i.e. School, Town, etc.)
Nassau County bonds to pay the refunds

3. Disputed Assessment Fund (the “DAF”)
Purpose:
Require taxpayers to pay own refunds
Avoid borrowing money to pay refunds

4. Disputed Assessment Fund (the “DAF”)
Who it affects:
Class 4 (Commercial) property owners
Only in Nassau County

5. Disputed Assessment Fund (the “DAF”)
Affect:
Increase in tax rate
Applies to all Class 4 properties even if did not grieve
DAF “charge”
Applies only to Class 4 that have grieved taxes and not resolved prior to July 22

6. Disputed Assessment Fund (the “DAF”)
Tax Rate:
Typically
Total Budget / Total Assessment = Tax Rate
DAF
Total Budget / Total Modified Assessment = Tax Rate (higher)

7. Disputed Assessment Fund (the “DAF”)
DAF Total Modified Assessment:
Assessments for all properties not grieving
Percentages of assessments for properties grieving
90% 10%
Claim value of property is 90%, 10% over assessed
90% of assessment is included
Other
If chose a value other than 10% reduction, the Department of Assessment will make a determination on the % of over assessment
Remaining % determined by Department of Assessment

8. Disputed Assessment Fund (the “DAF”)
Typical
DAF
Budget
Assessment
Tax Rate
$100,000
20,0000 5
2 properties-10,000 & 10,000
Budget
Assessment
Tax Rate
$100,000
19,0000
5.26
2 properties-10,000 & 9,000

9. Disputed Assessment Fund (the “DAF”)
DAF Charge:
Class 4 property owners that grieved
School tax bill-October
Taxes will be based on the modified assessment and higher tax rate (e.g. 90%)
Will not have DAF “charge” on this bill
General tax bill-January
Taxes will be based on the modified assessment and higher tax rate(e.g. 90%)
Will have DAF “charge” for all taxing jurisdictions (i.e. School and General) (e.g. 10%)

10. Disputed Assessment Fund (the “DAF”)
Recourse:
Nassau grievance and petition filing deadlines for 2016/17 passed
Nassau grievance filing deadline for 2017/18 passed (precludes filing a petition)
Filing for 2018/19 tax year
Grievance January 2017
Petition April 2018
It is possible that in the future the time between grievance and petition may change

11. Disputed Assessment Fund (the “DAF”)
Refunds:
Successful assessment reductions resulting in refunds
Refunds paid from property’s DAF
Remaining DAF funds distributed to taxing jurisdictions pro rata
If refunds greater than in DAF fund, overage paid out of Nassau County operating budget
Unsuccessful
No reduction and no refund
Entire DAF fund distributed to tax jurisdictions pro rata
May be years before any resolution
DAF could be for 3+ years of contributions

12. Disputed Assessment Fund (the “DAF”)
Serious legal issues-statutory and constitutional
No comment from taxpayers and firms involved in the process
NIFA forcing County move forward on this legislation to approve bonding for the existing, pending judgments
NIFA approval anticipated later this month

13. Disputed Assessment Fund (the “DAF”)
Last Thoughts
Thinking about for leases and contracts of sale
HKCC drafting an blast to clients, will forward for distribution
HKCC phone number (631)