Media Contact: Randolph Yunker - (516) 571-2490

Dear Homeowner:

Residents in Nassau County are being taxed out of their homes.

At a recently held public hearing, I offered a number of property tax proposals as a catalyst for a statewide review and discussion of the broken school property tax system. My proposal calls for replacing the school property tax on residential properties with a modest income tax (estimated at 2 ½ to 3%), and establishing a single commercial property tax rate so that all school districts can share in taxes paid by commercial properties. Roosevelt Field Mall presently pays over $16 million in school taxes, yet only two school districts share in this revenue. Is this fair?

While tax reform proposals have been offered in the past, a real debate or attempt to fix - legislatively - the school property tax system has never been properly addressed.

Unaffordable homes, high property taxes, the lack of affordable rentals and starter housing have caused many of our children to move away from Long Island in record numbers. Even though Nassau County is still one of the most desirable places in the nation to live thanks to our award-winning school districts, it has come about at a great cost to many longtime homeowners who now find themselves "house rich and cash poor."

This issue is too important to be ignored.

In offering my school property tax proposals in October of 2004, I requested that the Governor appoint a blue-ribbon nonpartisan committee to review the merits of my plan, as well as the plans offered by a number of Senators and Members of the Assembly throughout the State. My repeated requests were politely dismissed.

To refocus political attention on the school property tax issue, I invited Nassau County's State delegation to Albany and County legislators to my March 12 public hearing. While a number of elected officials respectfully declined my invitation, only one Member of the Assembly had the courage to attend and represent the interests of his constituency.

Contrary to recent statements by a number of political pundits and elected officials, I am not advocating that we eliminate or combine school districts; nor am I proposing a "Robin Hood" approach to funding local school budgets.

Under my proposal, all revenues generated by the residential income tax within the boundaries of a school district will be returned in total to that school district. Other than changing the source of the revenue from a property tax to an income tax, no other changes are made to the school district or its boundaries!

Because there will no longer be a residential school property tax to be paid, the STAR program will no longer be necessary. The half a billion dollars in STAR program funds, as well as the half a billion dollars in traditional state aid, will be used to supplement income tax revenue in those school districts that cannot generate the necessary revenue needed to fund their operating budgets. In the so-called "high wealth school districts," the income tax may actually generate more income than the school district needs! The excess funds will be placed in the district's reserve account.

A reduced tax rate for low-income families, as well as a maximum taxable earnings cap, would have to be created so that each homeowner - including renters - would pay their fair share of school income taxes.

Commercial properties, owners of apartment buildings, and non-resident property owners would continue to pay school property taxes, but at a fairer and uniform tax rate.

Since there will no longer be any school property tax to challenge, the number of grievances filed will be reduced dramatically and save the County approximately $20 million a year in property tax refunds. It is estimated that prior to my assuming office in January of 2004, Nassau County accumulated well over one (1) billion dollars in property tax refund debt.

By eliminating the residential school property tax, residents will see a dramatic decrease of approximately 65% in their overall property tax bill obligations and monthly mortgage payments will decrease by hundreds of dollars. Most importantly, home improvements would no longer increase school property taxes.

If nothing is done for homeowners, and school budgets increase by double digits each year, a homeowner's school property tax liability will double by the end of this decade.

If nothing is done to address the soaring and unequal school property taxes that are imposed on commercial properties throughout the County, many businesses will be forced to close down and future economic development will be impeded.

The fact is that we are facing an emergency and a constructive debate for property tax reform must be started now. It is likely that in October we will see another year of double-digit increases on many school tax bills!

Fairness dictates that all residents pay to support our public school system, but the test of how much should no longer be based on the market value of your home.

I urge homeowners to contact Governor Pataki and their State representatives and ask them to support the creation of a committee to review school property taxes in Nassau County and the State.

Sincerely,
Harvey B. Levinson
HARVEY B. LEVINSON Chairman, Board of Assessors