Shelter Island Town Assessor explains taxbite from reassessment

It’s been three years since Shelter Island has reassessed properties. With the return of annual reassessments, taxpayers got a lesson from Assessor Judith Lechmanski at the Nov. 26 Town Board work session on what it means.

Transitions by employees and under-staffing were the culprits in stopping the annual reassessments until assessors, led by Ms. Lechmanski, could bring stability to that office.

With notice that the annual revaluations would be returning, rumors have been rife among taxpayers worried they would be seeing sharply increased tax bills.

Not the case, Ms. Lechmanski explained to Board members.

Some will see the 100% revaluation of their property’s worth from what has been 68% and won’t see any major change in their tax bills as a result of a formula that considers values of properties in their neighborhoods.

Others will experience some relatively small increases. And those at the top level will be more affected, paying what Ms. Lechmanski described as their “fair share.”

Reevaluations will be effective in 2025, she said, explaining that some properties have increased in value since 2021, and depending on the amount of a property’s value now, its owners will see increases in their taxes.

But those who live in neighborhoods where property values have declined, and their own properties have not undergone considerable improvements, likely have been paying more than their “fair share” of the tax burden, she said. 

Assessors don’t set taxes. Rather, the County Legislature, Town Board, Board of Education, the Library Board of Trustees and the Board of Fire Commissioners establish their budgets that determine the amount of tax money needed for the budgets, Ms. Lechmanski said.

To give taxpayers a sense of how the 100% evaluation from the current 68% evaluation will be reflected, the assessor offered some figures:

• In 2023, the tax rate was $6.6268 per $1,000 of assessed value.

• In 2024, the tax rate has been $6.9796 per $1,000 of assessed value.

• In 2025, it’s anticipated the tax rate will be $5.7896 per $1,000 of assessed value.

To carry that over to the change from 68% to 100% valuation, Ms. Lechmanski offered an explanation:

• The owner of a property assessed at $680,000 in recent years, which is now going to be assessed at $1 million, is expected to pay the same amount in taxes.

• An owner of a property that has been assessed at $680,000 to less than $1 million can expect a drop in taxes.

• An owner of a property at $680,000 whose property is now worth more than $1 million can expect a hike in taxes.

Exemptions from some part of taxes will be affected by the return to 100% reevaluations, Ms. Lechmanski said. Seniors who declare Shelter Island as their primary residence, and have income of less than $500,000, can save about $140. Seniors over the age of 65 with income less than $107,300 can save about $320 from the Enhanced STAR exemption, Ms. Lechmanski said.

Disabled seniors over the age of 65, with income of less than $58,400, are eligible for a saving on a sliding scale of up to 50% of their tax bill.

Veterans who provide a DD-214 — a record of their military service when their service ends — are eligible for exemptions  based on whether they served in a war, in combat or were disabled during the time they served.

Ms. Lechmanski provided exemptions as they have occurred under the 68% assessment and the changes that will occur under the 100% revaluation:

• Those who served during a war have received a $51,000 exemption under the 68% valuations and that will increase to $75,000 in 2025.

• Those who served in combat have received a $34,000 exemption that will increase to $50,000 next year.

• Disabled veterans who have received a $170,000 exemption will see that increase to $250,000.

In January, the assessors will submit local data to the New York State Department of Taxation and Finance, Office of Real Property Tax Service. In February, the local assessors expect to receive verification from the state of the data.

On March 1, “Assessment Disclosure Letters” will be sent to property owners providing information on the new assessed value of their property and an estimate of what their tax bills will look like.

On May 1, a tentative tax roll will be published; for those who may have spoken with Ms. Lechmanski about their early notice of potential tax but decided to grieve their assessment to a separate Board will have until May 20 to do so.

On July 1, a final tax roll will be published and on Dec. 10, 2025, tax bills will be sent to property owners.

Throughout the process, Ms. Lechmanski encourages property owners to contact her by telephone or email to set a time to discuss any concerns. Often adjustments can be made in advance of filing for a tax grievance meeting. Ms. Lechmanski can be reached at 631-749-1080 or by email at [email protected] or [email protected].

Assessors establish a market value based on the County, Town, school, library and Fire Department budgets or levy, Ms. Lechmanski explained. That levy is divided by the value to determine the tax rate. As for setting the value of properties, assessors compare sales of similar properties to every other property. That provides an estimate of what each property would garner if it was purchased on the open market, she said.

Money raised from taxes represents the budgets, minus revenues that reach each from various sources, so the entities are not raising more money than what it’s expected is needed to cover that portion of the spending plans not covered by revenues or money from each organization’s fund balance — money accumulated from what doesn’t get spent in previous years. Laws regulate the amount that can be kept in a fund balance not specified for a specific purpose.

Shelter Island School, once criticized for having too large a fund balance, cured the problem by allocating money from a general fund balance to specific accounts, such as unanticipated maintenance and repairs. Such separate funds for what can often be large expenses allow a district to put aside smaller amounts each year to accumulate money needed for a major project, such as the school’s project to replace its aged septic systems with modern Innovative/Alternative systems. It avoids having budgets spike to pay for such expensive projects in a single year.

Deputy Supervisor Meg Larsen, who ran the work session on Nov. 26, said Ms. Lechmanski will be invited back in March to answer any questions property owners may have after they receive their estimates of their taxes.