Understanding Your Property Tax Bill

Even though every property tax bill is calculated in the same way, (assessed value multiplied by the local property tax rate), each property owner’s tax report is different.

Tax rates are constantly fluctuating. Nassau County’s tax rate is currently at 2.17%.

Your taxes can also increase or decrease depending on your property’s assessed value. A local tax assessor is in charge of this kind of appraisal and it can be done from annually to once every five years, or when the county chooses to reassess to bring up their tax revenues.

So, how does the tax assessor determine your property’s value and tax bill? There are three common methods that can generate an estimated value.

Cost Method

This tells you how much would be required to replace or rebuild the property with current labor and material costs.

Market Approach or Sales Comparison

Determines your property’s worth by comparing the market value of other properties recently sold in the same area.

Income Method

Specifically for investment and commercial properties, the Income Method assesses the property depending on how much income the property can generate.

Once you are informed about the value of similar properties, knowing what other features of your property are accounted for during a property assessment will help you figure out your overall property tax as well.

Purpose 

Your real estate’s purpose might not be residential. Be it an agricultural, commercial, or rental space, land is taxed differently depending on its purpose. Property used for religious purposes can be considered for certain exemptions.

Location 

While your state determines the property tax rate, your neighborhood can influence your home’s assessment value. Associations, amenities, school districts, and community services are a part this. 

In addition to your neighborhood, the lot where your house is located within that area can also increase its value. Is the property on a main or busy street as opposed to a pedestrian-friendly area? Is it a corner lot? Does it have a view

Age and Design

Properties that are 10 to 20 years old tend to receive lower value assessments, depending on their condition, due to their remaining useful life and depreciation. Additionally, if the architectural style of the home is tacky or out of style its value may decrease. 

Size

While size implies the land’s square footage, it also includes the number of bedrooms and bathrooms and total square footage under air conditioning.

Improvements

From bigger projects, like building an in-ground pool or adding an extension, to routine fixes like remodeling a kitchen or bathroom—many home renovation projects can increase the assessment value of your home. 

If you are not sure you are being taxed fairly, get in touch with Property Tax Adjusters, Ltd. today.

Testimonials

“I have saved on my own real estate taxes for many years. As well, any clients I have referred have also saved on their taxes and advised they were very happy with the service and results received from Property Tax Adjusters. It is without hesitation that I refer interested persons, friends and clients alike, to Property Tax Adjusters for assistance on reducing their taxes.”
Herbert G. Pitkowsky, Esq.