Owners of new or extensively renovated homes in Nassau get tax relief in state budget 

Owners of new or extensively renovated homes in Nassau County could spread out up to $750,000 in new valuation over eight years under a tax relief legislation approved this week in the State Legislature.

Under Nassau's first countywide reassessment in a decade, homeowners can phase-in valuation changes — up or down — over five years.

But the exemption did not apply to new homes, or those with major renovations, because the properties essentially were being assessed for the first time.

Those homeowners effectively had to pay their full assessed valuations right away, while most properties were allowed to catch up to their new values over a five-year period.

Many owners of newly constructed homes, or those with extensive renovations, complained of exorbitant tax bills .

They said they were shouldering a disproportionate share of the property tax burden because so many other properties received the phase-in exemption.

"This bill protects taxpayers and encourages both new construction and job growth during this much-needed coronavirus pandemic recovery period," Nassau County Executive Laura Curran said in a statement.

Newsday reported in February that some residents who had bought new homes in condominium developments such as Roslyn Landing in Roslyn Village were stunned to receive tax bills approaching $40,000 or $50,000 for the 2020-21 tax year.

Conal Denion, special counsel for Nassau County, said homeowners who had high tax bills would become eligible for the exemption this fall.

According to county officials, 1,129 properties received no phase-in because of full new construction, while 13,088 properties received a partial phase-in because they had less extensive new construction.

Assemb. Chuck Lavine (D-Glen Cove) and State Sen. Kevin Thomas (D-Levittown) sponsored the state legislation that passed this week as part of the 2021-22 state budget.

Gov. Andrew M. Cuomo still must sign the bill.

Thomas said the Nassau phase-in measure "will help provide equity and reduce the burden on homeowners during these exceptionally challenging times."

Nassau County Legis. Arnold Drucker (D-Plainview), who helped author the state legislation, said extension of the exemption to new construction would "make the tax system fair."

He said, "seniors looking to downsize and move into a town house or condo were not looking to pay double in taxes. This kind of evens this out."

Approval of the legislation in the Democrat-controlled Assembly and Senate represented a key victory for Curran, a Democrat who is running for reelection in November.

Curran has won praise for conducting the first reassessment in nearly a decade and resetting home values after a decadelong freeze.

But she has received criticism about the new construction issue.

Homeowners said they purchased homes, or began major renovations, before knowing a countywide reassessment was underway or that a phase-in would be implemented.

Michael Dubb, founder and chief executive of The Beechwood Organization, which operates Country Pointe and other developments, said, "we were confident the unintended consequences of the flawed law would be corrected."

Dubb lauded Curran and county and state legislators for rectifying the inequities of the law.

"We are delighted that future property taxes will be at fair levels for all homeowners across Nassau County and that seniors purchasing newly constructed homes in Nassau County can now remain in Nassau County," Dubb said in a statement.

County officials said they hope the exemption for new construction, which only applies to Nassau, would encourage a burst of residential construction.

Under the state legislation, new construction must be completed in time for the 2024-25 tax year to be eligible for the 8-year phase-in.

The legislation will sunset in 2026.

By Scott Eidler

scott.eidler@newsday.com@ScottEidler

Scott Eidler is a deputy editor for the towns department at Newsday. Scott has worked at Newsday since 2012 and previously covered municipal government and education.