The county pays the entire refund even though schools often account for 60 percent or more of the total tax bill. Tax refunds caused by incorrect assessments have several towns in Suffolk County charging taxpayers a significant portion of their county taxes just to cover the refund expense. This tax year for the first time, all Suffolk residents received tax bills with a separate line, called the NYS Real Property Tax Law, indicating the amount of money collected to reimburse the county for property refunds. In two towns, that special tax, which many taxpayers don't realize they're paying, is about double the money paid to support most county services, excluding police. Even though 90 percent of the money refunded countywide goes to commercial property owners, it's homeowners who bear the brunt of the tax burden in Nassau.
Nassau homeowners pay dearly to cover the cost of the county's mounting refund debt.
Both county governments pay out such large refunds because many homes and commercial properties are overassessed at rates well above acceptable standards, experts say. In Nassau, publicity surrounding the county tax system has encouraged many home and business owners to challenge their taxes, observers said. Furthermore, dozens of tax lawyers encourage homeowners to challenge their assessments, often through targeted mailings. But someone has to pay for those governmental mistakes. Throughout the state, nearly every town and county that issues refunds recoups the money from those taxing districts.