Town Attempts to Address School Tax Disparities

By Hank Russell

The Town of Babylon is letting taxpayers on the Suffolk side of the Amityville and Farmingdale School Districts know that the town is working to fix the issue regarding the disproportionate amount of school taxes they pay, compared to their Nassau County counterparts.

According to the town’s website, Suffolk residents within these two districts “have seen an alarming spike in their property taxes this year. The problem, the website says, began with the state, which made decisions on how tax and equalization rates are calculated. The state assigns an equalization rate each year to determine the fair market value for each municipality, which is then used to divide and allocate the taxes.

(To determine the equalization rate, the municipality’s total fair market value is divided by its assessed market value, according to the New York State Department of Taxation and Finance. A rate below 100 means the property has been assessed less than its market value; the lower the rate, the longer it has been since the last reassessment.)

This year, the town announced, the state froze Nassau’s equalization rate, while Babylon’s rate was adjusted downward, which means its fair market value increased “measurably.” As a result, Farmingdale School District residents in Suffolk had to pay an estimated additional $5 million in total school taxes, while those on the Nassau side had its tax burden reduced by $1 million.

Meanwhile, Suffolk’s Amityville School District residents saw their school taxes go up by nearly $3 million, while Nassau’s district residents also saw a reduction in their taxes, but the town did not say by how much.

The town reminded the residents the town is still required to collect school taxes, but “cannot unilaterally recalculate or reduce any tax bill.” Furthermore, “[o]ur local government is responsible for the collection of these school taxes but does not have authority over how they are calculated,” the town said.

Although the town is urging residents to continue paying the school taxes, “we want to emphasize that we are not standing idly by,” the town stated. “[W]e are taking every step possible to hold the responsible parties accountable.”

The town announced that it has “enlisted legal counsel” and it is exploring all options, “including litigation” and meeting with its local state legislators to resolve the tax burden imbalance.

“Although this issue did not begin at the Town level, we are fully committed to standing up for our neighbors and ensuring that the burden of school taxes is equitably shared,” the town stated.