Southampton reassessments do not reflect economic downturn

The drastic downturn in the economy and the drop in real estate values have not been reflected in this year’s tax assessments, according to Southampton Town Tax Assessor Ed Deyermond.

That’s because, Mr. Deyermond said, the assessments were calculated during a time period set by New York State, which ended on July 1, 2008, well before the economic nosedive.

Because of that, Mr. Deyermond said he is expecting a busy Grievance Day this Tuesday, May 19, as residents challenge the town’s figures based on what they see as the current value of their properties.

Grievances will be heard at St. Rosalie’s Catholic Church on Montauk Highway in Hampton Bays.

Although the pace of the 2009 assessment process is on par with last year’s, Mr. Deyermond said he is expecting a more intensive Grievance Day, when the town’s Assessment Review Board will determine on a case by case basis whether the town’s assessments are correct. After conducting its hearings, the board can decrease an assessment or keep it at the same level set by the town.

“As we get closer to Grievance Day, things are picking up,” Mr. Deyermond said. He added that the vast majority of taxpayer complaints are from homeowners who do not feel their assessed values match the current worth of their homes.

Mr. Deyermond said he understood those grievances, but said the 2009 evaluation period, from July 1, 2007, through July 1, 2008, is mandated by the state. “There’s nothing we can do about it,” Mr. Deyermond said. “We’d have to change state law, statewide. We have to operate under state dictates.”

According to state law, property values must be calculated based on real estate market conditions during that prescribed time period. “Assessments do not reflect current market value,” Mr. Deyermond emphasized.

Of the roughly 55,000 commercial and residential properties in the town, Mr. Deyermond said about 9,900, or 18 percent, would see an increase in their assessed value, 1,763, or 3 percent, would see a decrease, and the remaining 43,340, or 79 percent, would remain the same.

Mr. Deyermond said he did not have a breakdown of the assessed values of commercial versus residential properties.

Overall, the town saw an increase in the assessed value of all properties in the town from $52.8 billion to $54.6 billion. Mr. Deyermond noted, however, that the increase could change, pending the result of grievances and other alterations. A final assessment roll will be released on July 1, he said.

Some properties were assessed at higher levels because of additions and other new construction; others because of changes in market conditions. But, as Mr. Deyermond pointed out, those factors were for the state mandated evaluation period, which ended almost a year ago, not the current situations. According to the assessor, property values might increase because of additions or the construction of garages, pools, tennis courts or decks on the premises. Also, assessments are based on the value of properties in a given neighborhood, so increases or decreases to the value of surrounding properties, such as a new subdivision or land preservation, may alter the overall value of a given property.

On-site visits, reviews of building and site plans, sales analysis of corresponding properties and Graphical Information System tools, such as state-of-the-art aerial photography, are some of the methods Mr. Deyermond’s office uses to evaluate the value of properties.

This is the first year, however, Mr. Deyermond said, that his office has used pictometry, or aerial photographs, which, he said, is an invaluable tool in producing more accurate assessments. “A picture tells a thousand words,” Mr. Deyermond said. “It’s an excellent measuring tool.”

While this year’s assessment will not mirror the deflated real estate market, the 2010 assessment will; and that, Mr. Deyermond said, could have a significant impact on the town.

What concerns the assessor is the possibility that next year’s assessment will show a flattening of real estate values, or worse, a decrease. If that’s the case, then elected officials may be forced to increase taxes or cut spending.

According to Town Supervisor Linda Kabot, town property values have steadily increased over the last decade. “And over the last six years they went through the roof,” Ms. Kabot said. “But, if there’s no taxable increase and spending is still the same, then that’s a problem.”

Mr. Deyermond recently recommended that the Town Board put together a committee to study to the upcoming impacts of the 2010 assessments. “We need to address these declines for next year,” he said.