May 18 - Last Day to Grieve Property Taxes

40 Maple Ave, Smihtown NYTax Grievance 

By Erica Jackson

Despite declining home values, taxes continue to rise, but there is something Smithtown residents can do to recoup some of their loss, says Margaret Remhild, vice president of Long Island Tax Savers of St. James.  “It is your right to file a tax grievance.”

Each year, numerous home owners approach Remhild and other tax grievance companies with a simple question, “How much money can you save me in property taxes?”

Remhild says that over the past 19 years she has helped thousands of clients to reduce their taxes through the tax grievance processes. “I have saved people as much as ten thousand dollars to as little as five hundred dollars on their tax bills,” she said.

To file a grievance, Remhild says all she needs is a copy of a homeowners tax bill or the address of the home in question. And since she doubles as real estate broker, Remhild says she knows almost immediately if the homeowner has a case.  “I know home values,” she said.

Time and time again, especially in this economy, she said has seen far too many homes assessed at, for example $400,000, but in the market place, they are only worth $350,000.  This, she says makes a perfect case for a tax grievance.

Mitchell Drucker, president of Long Island Tax Cut, LLC, of Smithtown has noticed the same trend:  “Over the past eight years, property values have come down significantly. There is a much larger percentage of homeowners that are being overassessed.”

In fact, Drucker said he saw his company’s client list rise nearly ten percent last year alone.  

One of those clients was Ed McElhone, a 10-year Fort Salonga homeowner.  McElhone said he approached Drucker after learning that his neighbors with similar homes were paying less in taxes.  “We were paying close to twenty five thousand dollars a year in taxes and our property value declined by at least three to four hundred thousand,” he said.

He hired Drucker and soon after filing for a grievance McElhone said he was pleased to receive a $2,000 reduction in taxes. 

Alex Olshonovsky, also a ten year resident of Fort Salonga, saw a savings of $7,000 after filing a tax grievance through Drucker’s company.  Like McElhone, Olshonovsky said his home value had dropped significantly since he purchased it new ten years ago. 

Presuming that a client’s home is overassessed, documents, including an appraisal, are filed with the Town of Smithtown’s Board of Assessment Review, which is the body that examines all grievances.  The board is charged by law to made a determination by July.  If positive, the homeowner’s next tax bill is adjusted accordingly.  If negative, however, a small claims review petition can be filed, at a cost of $30.  

It can be a lengthy court process, noted Remhild, who suggested that hiring a tax grievance professional can benefit a homeowner. “If you had a heart problem you would go to a specialist, knowledge is power,” she said.

Drucker, who like Remhild, charges fifty percent of the homeowner’s first year’s tax savings as a service fee, agrees: “We have the experience and know how to prepare the proper documents.”

While the Town of Smithtown is happy to investigate all grievances filed on behalf of a homeowner, Peter Johnson, deputy town assessor of Smithtown, says his office urges residents to stop in and speak to someone about a possible grievance. “Sometimes,” he said, “it is not always necessary to go the formal route. Our office is open from nine to five and we are happy to review any homeowners’ situation.”

By stopping in the office personally, Johnson said his office may be able to provide additional relief for a homeowner through a variety of tax saving programs, such New York State’s School Tax Relief (STAR) program.

He reminded, however, to stop in prior to the town’s tax grievance deadline: May 18.

If looking to file a tax grievance, homeowners, said Johnson, need only to bring proof that their home is being overassessed. Proof, he said, could include listings of comparable recent home sales. There is no fee for filling, said Johnson, who also noted that unlike New Jersey, New York State law states that a review can never result in an increase in taxes.  

Once documentation is filed, Johnson said that the town’s three member Board of Assessment review, will take a look at the documentation and make a determination based on the “value of the property, comparable sales in the area, and what the home is worth.”

“I would say a homeowner has a fifty fifty shot at some sort of relief, especially in areas where we see the market dropping,” said Johnson.

Last year, Johnson said nearly 9,000 grievances, commercial and residential, were filed with the town.  Of those, 3,000 residential grievances were referred to a small claims court for additional review.

And while many homeowners are able to obtain a reassessment, Johnson said residents should know that on a whole, the town’s assessment rolls are, according to New York State,  “uniform and equitable.”

“Our assessments do not deviate by more than ten percent of the value of the property,” said Johnson.  “And while there are properties that are over assessed, overall, the state told us that we are doing a good job.”