To end the profitability and combat the growth of the illegal conversion of single-family homes to multi-family dwellings, Nassau County Assessor Harvey Levinson unveiled an initiative that will reclassify any illegal multi-family dwelling from Class I (residential) to Class 4 (commercial) property for taxation purposes. On average, the commercial property tax rate is 2 1/2 times higher than the residential rate.

According to Levinson, the quality of life in Nassau County has changed dramatically over the last decade. The seemingly never-ending annual property tax increases imposed by many of the county's over 400 taxing jurisdictions, coupled with historic increases in the values of homes, have led to the proliferation of an illegal underground of multi-family accessory apartments that threatens the foundation of our suburban life and the safety of its occupants.

"By the end of 2003, reports indicated that an estimated 100,000 illegal apartments exist in Nassau and Suffolk counties," stated Levinson. "Single-family homes in some areas are often promoted and sold as 'income producing' based on an established or possible installation of an illegal apartment. The lure of additional income influences the sale and inflates the selling price of the property. Since homes are valued and assessed based on recent sales prices, the 'inflated' sales price has the potential to increase the assessed value and taxes on single-family homes in the neighborhood."

"In the wake of last month's murder of a woman at a home in East Meadow, it was discovered that the landlord illegally converted his single-family dwelling into a rooming house and rented three basement and two upstairs rooms to five individuals," Levinson stated. "Based on the current town and county total property tax obligations, if the illegal rooming house in East Meadow was reclassified as commercial property, its tax obligation would increase from approximately $5,700 to $21,700."

To begin the process of identifying and reclassifying violating properties, Levinson will be working closely with the Building and Zoning departments of all towns, cities and villages beginning immediately. Any alleged violation of the local zoning law will be reviewed using common-sense objective factors and testimony. Upon receipt of written notification of the change to the commercial tax rate, the homeowner will be given the opportunity to challenge the Department of Assessment's findings and request or agree to onsite inspection of the residence by an assessor or building inspector. In some instances, the rent paid to the owners of illegal accessory apartments are cash payments that may not have been reported to the Internal Revenue Service (IRS). If a property is reclassified commercial, a report of the department's findings will be forwarded to the IRS for whatever action they may deem appropriate.

"By changing the classification of an offending property for taxation purposes - not only are you hitting the violator in the pocketbook - you are restoring lost revenues to the tax rolls and reducing the overall tax burden on the average law-abiding property owner," concluded Levinson. "My goal is to make these illegal accessory apartments unprofitable to maintain."