Nassau County Real Estate Tax Mystery: Case of the Disappearing Class One Reassessment!

By | November 3, 2020

Nassau County Class One Reassessment

I received a call from a client yesterday asking if I was aware of, or knew the implication of, a new entry appearing in the General and School Taxes section of LandRecord Lookup for Nassau County.

I was not I said, and initially pulled-up the random property pictured to see what it was all about.

There, in the section of the readout that includes the Enhanced Star exemption, was a line item that read ‘Class one reassessment – Nassau’ with a $122 ‘Exempt Amount’ and ‘Saving Due To Exemption’ in the four figures.

The clients question was whether the buyer and seller of this house (along with any other Nassau County resale because this line item seemed to be an across the board entry), would be dealing with any issues concerning restorative taxes that the title insurer would need to account for at closing?

Restorative taxes are the difference between the value of the base tax rate and the tax rate including exemptions. Practically speaking, the town or county may not seek the restorative taxes, but the possibility remains that they will. Because of this, those restorative taxes need to be paid or credited to the buyer at the sale of the property.’ (Russo Law Group)

The Disappearing Exemption

I immediately began to research the issue, asking my underwriters whether they were aware of the Nassau County Class One Reassessment and if so, how they were going to address it?

They were not, but then the situation became slightly more interesting because going back onto LandRecord Search for the same pictured property referenced above and below, about 20-minutes later, the Nassau County Class One Reassessment was no longer there (see below).

While no definitive explanation of this item has yet been discovered, one of my underwriters came back with the following. And, if anyone has another or differing explanation, please let me know.

This now non-entry appears to be what has been termed a transactional exemption. In fact, according to this source, it is not an exemption but is a 5-year increase to taxes that’s being applied at a rate of 20% of the total per year.

If the house were to be sold, then the new buyer would assume the obligation for the remaining time in the 5-year premium.

Please note that the explanation of the ramifications of the Nassau County Class One Reassessment is based on initial research that was done and conversations that took place, is not being represented as fact, and is subject to change upon the receipt or discovery of new facts.

We will continue to explore this, and report back as information is available.

Mike Haltman, CEO
Hallmark Abstract Service

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One thought on “Nassau County Real Estate Tax Mystery: Case of the Disappearing Class One Reassessment!

  1. Cindy Denbaum

    The 2020/21 School Tax bills are now posted on the Land Record Lookup website. The school tax payment due date was extended to 11/1/20 (12/1/20 is the FINAL deadline with no penalty). The 2020/21 General Tax will be shown online in 1/2021.

    The 2020/21 property taxes reflect the outcome of grievance applications filed LAST YEAR. This is the first period reflecting the re-assessment of all Nassau market values, the level of assessment at .1% (previously .25%), and the implementation of the 5 year phase-in of the Taxpayer Protection Plan.

    No offers have been received yet for the 2021/22 grievances filed EARLIER THIS YEAR.

    The NEXT filing grievance opportunity is for the 2022/23 filing tax period commencing in 1/2021 when your new values will be posted. If your home would sell for less than the 2022/23 tentative market value, you should apply for a reduction. As a registered representative with the Assessment Review Commission (Rep #816), I can file on your behalf for a LOW, FIXED fee.

    Please share with Nassau owners who may be interested in my unique, interactive, personalized service.


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