Nassau County to Pursue Draconian “Penalties” for Failure to File Income and Expenses
November 9, 2016 | Articles & Press Releases
You will recall that Nassau County, effective with a Local Law passed in December 2013, requires the filing of “all income derived from and all expenses attributable” to the operation of all commercial property. Non-compliance with this law results in monetary “penalties” (using the County’s term) calculated as a percentage of the property’s assessment, ranging from .25% to .75% of the property’s fair market value as determined by the County, increasing with a continuing failure to file.
As we previously advised: (1) this filing requirement has nothing to do with the property tax appeals filed by this firm, and (2) the law applies to all commercial properties, not just those appealing their assessments.
THE COUNTY HAS ADVISED THAT IT NOW INTENDS TO SEEK ENFORCEMENT OF THE SO-CALLED PENALTIES RELATED TO FILINGS FOR THE 2013 AND 2014 REPORTING YEARS. UNTIL AN ACTUAL NOTICE IS RECEIVED IT IS UNKNOWN WHAT PERIOD THE PURPORTED NON-COMPLIANCE RELATES TO, BUT IT APPEARS THE INFORMATION WAS DUE UNDER THE LOCAL LAW NO LATER THAN APRIL 1, 2015. THE COUNTY SENDS OUT NOTICES EACH YEAR IN FEBRUARY REGARDING THE APRIL 1 DEADLINE.
We have also been advised that notices from the County will be mailed to all affected owners on Wednesday, November 9, 2016, the day after Election Day. However, there is also a proposed amendment to the local law before the Nassau County Legislature which would allow for partial “amnesty” of the imposition, and set the deadline for mailing the notices as January 15, 2017. Impacted owners have a right to a hearing on the calculation or propriety of the penalties by requesting a hearing within thirty (30) days of the receipt of the notice.
We believe that the law is unconstitutional and illegal and will be filing a legal challenge. We will keep you informed of the details of these actions, but encourage you to take the notices seriously and take all necessary steps to schedule a hearing. If the notice does not explain the process for scheduling a hearing, please contact us or the Nassau County Department of Assessment at (516) 571-1500. Non-payment of the penalty without authorization will result in the County placing a lien on your property.
It appears the County has passed this law entirely for revenue purposes, and that the Draconian impositions have no relation to the cost of administering its stated purpose of data collection.
A copy of this notice was emailed and sent via regular mail to all clients on November 9, 2016.