Mangano Declares State of Emergency, Signs Taxpayer Protection and Tax Stabilization Orders

Earlier this afternoon at the Theodore Roosevelt Executive and Legislative Building in Mineola, Nassau County Executive Edward P. Mangano signed two executive orders to try and enhance the county's assessment system. The cost-saving measures are expected to save taxpayers $250 million annually.

Executive Order No. 5, the Emergency Taxpayer Protection Order of 2010, signed today addresses the commercial assessment errors that represent the lion's share of the problem. Under the order, commercial property owners grieving their assessment will be required to obtain and produce a certified appraisal to the county to ensure their property is properly assessed.

"Businesses collected $110 million of the $136 million paid out in refunds and accumulated interest last year," Mangano said. "By signing this order, we begin to stop the tens of millions in tax dollar waste while providing businesses an opportunity to correct their taxes before they are forced to overpay."

Nassau's assessment system generates over 100,000 tax grievances a year, as well as over $100 million in refunds annually due to errors in the system. The debt service on the county's $1.3 billion of debt incurred to settle prior tax certiorari cases costs taxpayers another $150 million per year, for a combined annual cost of $250 million.

Executive Order No. 6, the Tax Stabilization Order of 2010, also signed today by Mangano stops Nassau County's annual assessment system and replaces it with a four-year cyclical system that begins in 2011.

"Nassau County taxpayers are in a State of Emergency," Mangano said. "That's exactly why today I am ordering a major change to the way our county assesses property."

Mangano continued, "Today we are accomplishing what prior administrations failed to do. We're taking actions that will relieve taxpayers of a system that wastes taxpayer money. These are the solutions needed to stop the annual waste of taxpayer dollars and put Nassau's assessment system on the road to recovery."

Presiding Officer Peter Schmitt added, "This marks the end of the billion dollar experiment. Annual re-assessment has been a dismal failure."

Nassau County will join the 685 other municipalities statewide that have cyclical assessment systems in place. New York State does not mandate an annual reassessment cycle.

"The cost of perfection has resulted in near bankruptcy for Nassau taxpayers," Mangano said. "At a time when families are doing all they can to make ends meet, government must do all it can to reduce spending. For this reason, Nassau County will join the majority of other municipalities statewide in reassessing on a cyclical basis and begin to reduce the $250 million in annual tax dollar waste."

Mangano's next step will be to introduce a legislative package for consideration before the Nassau County Legislature and New York State Legislature.