Tax Mix-Up In Eastport-South Manor School District Will Impact Residents

Some Eastport-South Manor School District residents will have to pay more in taxes, others less, as a result of a calculation error in the levy distribution for 2020.

According to an email sent districtwide on December 14 from Assistant Superintendent for Business and Operations Tim Laube, the percentages collected from taxpayers in the Southampton Town and Brookhaven Town portions of the district had been incorrectly appropriated, and subsequently taxes were under-collected from the Southampton Town portion of the district and over-collected from the Brookhaven Town portion, he said.

In order to account for the adjustment needed to correct this miscalculation, half of the amount that Southampton Town residents underpaid in 2020 has been included in their tax bills for this year, and the second half will be included in residents’ tax bills for 2022.

“I apologize for any confusion or inconvenience this may cause,” Mr. Laube said. “The redistributed increase was split between the two consecutive years to lessen the impact felt by residents.”

For taxpayers in Brookhaven Town, the reverse will happen to account for the monies already collected. As a result, taxes will be slightly lower for those in Brookhaven Town in both 2021 and 2022.

“What can be said?” resident Hank Varrichio asked via Facebook. “A mistake was made and is being corrected. Stuff happens.”

“Exactly,” Suzanne Pfeffer added.

Mr. Laube said, to be clear, this accounting error does not mean that Southampton residents’ taxes have increased more than what was budgeted.

“Simply stated, it means that Southampton taxpayers paid less than what they should have paid, whereas Brookhaven residents had slightly overpaid. However, the total amount that should have been collected remains correct,” Mr. Laube said. “This adjustment is simply to equalize the amount paid with the amount owed. In the end, after the adjustments are completed, each taxpayer will have paid the portion of the levy correctly associated with their property.”

Each year, registered voters are asked to approve a proposed spending plan for the school district, which is funded in part by the tax levy. The calculations for the levy follow a state-provided formula, and the total amount needed to be collected for the Eastport-South Manor School District is then divided up between the two taxing jurisdictions — Southampton and Brookhaven — that cover the district. For the past several years, Mr. Laube said, the district has proposed spending plans with levy increases that not only fall within the allowable limit, but also comply with the New York tax levy cap.

But while voters approve the budget and the levy percent increase, the state determines how much of the tax bill is apportioned to each town through a formula associated with equalization rates. These vary from year to year and shift to what percentage of the levy is allocated to a particular town, and ultimately what is appropriated to individual taxpayers is that result.

“As residents recently received their personal tax bill or summary, there are two important changes to note in order to better understand the portion of the bill pertaining to your school taxes,” Mr. Laube said. “Another reason for an increase in residents’ bills is related to the total assessed values of the towns themselves. Those totals shift from year to year in each town, growing at different rates. If Brookhaven, which makes up a sizable portion of the district, has tremendous growth in its taxable value, then it will pay more to the ESM levy, thus reducing Southampton’s share. This works in reverse as well for each town.”

A property owner may see his or her assessed value remain the same, but the total of the town’s taxable value in that portion in the district will change. This drives the tax rate for the school district in that portion of the town.

In addition to receiving the letter via email, residents can view it on the district’s website. It was also mailed to each resident in the Eastport-South Manor community.

If there are any questions, residents can contact Mr. Laube at 631-801-3001 or email laubet@esmonline.org.