Village tax hike should be the last for a while

When Valley Stream officials announced that they would be reassessing commercial properties in the village, they were upfront about the fact that it would shift the tax burden to residents. Still, when homeowners get their tax bill after the 2012-13 budget takes effect on June 1, there will likely be some sticker shock.

That’s what a three-figure tax increase will do, especially when Long Island homeowners already pay some of the highest property taxes in the nation. Village officials estimate that the average homeowner will pay an additional $130 to $150 next year.

Valley Stream officials were faced with a dilemma. Assessment challenges, technically known as tax certioraris, have been piling up in the village. Homeowners and commercial property owners, looking for any tax break they can get, have been filing these challenges. When an assessment reduction is awarded, the property owner is reimbursed what he or she has overpaid in taxes since the challenge was filed. In the case of commercial properties, these refunds are often tens of thousands, if not hundreds of thousands of dollars.

The village reached its breaking point in the 2010-11 fiscal year, when it paid back more than $2 million in refunds, more than double the amount it had budgeted. The refunds became unsustainable.

So village officials decided to reassess all commercial properties to more closely reflect their value and to produce more accurate, less challengeable property tax bills. More precise property assessments mean fewer tax certs, which mean fewer refunds. The nearly $1 million being set aside in the budget every year for tax challenges could be reduced to virtually nothing.

Additionally, village officials said that the number of refund payments was the only factor standing in the way of Valley Stream’s earning a coveted Triple A bond rating, which would mean reduced interest rates when the village borrows money.

We support the village’s efforts to correct its assessment rolls, but we hope that in future years it can be done without a significant impact on homeowners.

The village maintains all of its services in the 2012-13 budget. It’s important to residents that the garbage gets picked up, street repairs are made and the parks are kept clean. Homeowners pay far more in school taxes than village taxes, but unless they have children in the schools, they get many more services from the village.

Several new initiatives will make Valley Stream a better place. There is the planned acquisition of a downtown building, and upgrades to the pool complex are under way. Some people won’t mind paying more in taxes as long as they’re confident they will get something more for it.

But others simply can’t afford any more. Residents in the high-risk flood zone are just eight months away from having to pay four-figure annual insurance premiums, once a moratorium on the higher rates expires. Barring some relief from the federal government, they need every penny they can get.

We hope that this year’s tax increase for residents will be a one-time thing. Village officials have nearly a year before they start planning next year’s budget, and we hope they will use the time wisely to find cost savings and other ways to increase revenue to avoid another tax hike in 2013-14. The village has a talented accounting staff that should be able to accomplish this.

Obviously, the tax certiorari situation had to be dealt with. But now it’s time to ensure that the reassessment plan works for homeowners, too. Valley Streamers simply can’t afford to pay any more.