GOOD NEWS FOR RESIDENTIAL TAXPAYERS DESPITE ADJUSTMENT IN BASE PROPORTIONS AND REMOVAL OF LIPA PROPERTIES FROM TAX ROLLS
October 29, 2015 -- The removal of several LIPA properties within the North Shore School District from tax rolls and the resulting increase in the proportion of the tax levy paid by homeowners may have complicated the revenue side of the school budget a bit, but will not have a negative impact on, and it appears even benefit, residential taxpayers this year, according to figures obtained by Northwordnews from the School District.
Complying with State law, the Nassau County legislature voted in late September to remove hundreds of LIPA owned properties across the county from tax rolls, and instead, the utility will now make Payments in Lieu of Taxes (PILOTs). And while the base proportion of class 3 utilities within the North Shore School District will as a result decline significantly from 27.37% of the total school tax levy to 21.63%, LIPA’s PILOT of $7,529,309 will more than offset the loss in tax revenue from class 3 (see chart). That amount “will be billed separately to LIPA and remitted to us,” said Assistant Superintendent for Business Olivia Buatsi. The school tax levy of $89,580,764 approved by voters this past May, she explained, will be reduced by the amount of the PILOT to $82,051,455.52.
Last year, under the base proportion system in Nassau county, residential taxpayers (class 1) in the North Shore School District were responsible for 65.32% of the total school tax levy, but this year will be responsible for 70.55%. However, because the overall levy has been reduced to $82 million, class 1 residential taxpayers will only see a very modest increase - 0.83% or $476,995 more than last year’s class 1 obligation of $57,410,307 (see chart). That is a significantly lower increase than the 1.93% rise in the overall tax levy that the School Board adopted and voters approved this past May.
Next year’s tax levy limit (or “tax cap”) will be based on the revised downward levy of $82 million.
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