Hearing on plan to reform Nassau assessment system

With the projected cost of Nassau's backlog of commercial property tax protests increasing, the county legislature Monday will hold a public hearing on County Executive Edward Mangano's first bill to reform the assessment system.

The bill imposes a $5,000 fine if business protesters do not submit a certified appraisal or "bona fide offer" that falls within 85 percent of their assessed value. It also requires them to waive their right to protest again during a new four-year assessment cycle.

The intent is to settle commercial protests before the county becomes liable for tax refunds. Because of erroneous assessments, the county has been paying more than $100 million a year in refunds - more than 80 percent to business owners and their attorneys.

Despite Nassau's decade-long effort to reduce its backlog, Comptroller George Maragos reported last week that Nassau's estimated liability from pending protests rose to $164.3 million by the end of last year compared to $138 million a year earlier.

The actual cost will not be known until the 39,509 pending cases are settled.

But business interests - including members of Mangano's own volunteer Assessment Reform Team - complain the proposed bill does nothing to correct erroneous values, is contrary to state law and disenfranchises small business owners who cannot afford to pay the $5,000 cost of a certified appraisal.

"You can attempt to get the assessment system right," said commercial tax protest lawyer John Terrana, "or you can try to make changes that will deter people from filing."

Minority Leader Diane Yatauro (D-Glen Cove) has invited all members of Mangano's reform team to testify.

Mark Hamer, chairman of the team, said he expects to speak against the law.

"This legislation is a Band-Aid on a system that is dysfunctional," he said. "We need to fix the assessment system, and make it a more transparent and accurate system."