Homestead Act Could Bring Big Tax Increase to Christie Place Condo Owners

Scarsdale is now undergoing its second village wide tax revaluation in just two years, after a period of 45 years without a village wide reassessment. Part of this process is consideration of the adoption of the Homestead Act which would change the way the Village's 42 residential condominiums are assessed. Since all the condos in the Village are located at Christie Place (42 residential and 5 retail units), this decision has the biggest impact on those property owners. If adopted, these units would be taxed similarly to single family homes of the same value, rather than based on their potential rental income.

A joint meeting of the Village Board of Trustees and the Scarsdale School Board was held on Monday night February 1 to review the issue. According to a report from Village Assessor Nanette Albanese, the 42 residential homeowners at Christie Place would pay an estimated average of $14,464 in real estate taxes in 2017, on units valued from $737,000 to $1.9 million. If Homestead were adopted the average real estate tax for a unit at Christie Place are estimated to rise by $13,409 to $27,873 or almost double. On the other hand, if the Village does not adopt Homestead, and does not collect the additional $563,185 from Christie Place homeowners, the burden will be shared among Scarsdale's 5,698 homeowners at a cost of approximately $99 each.

The Village and School Board considered the adoption of Homestead in 2014, but after heated objections from the Christie Place homeowners, it was not adopted. Now the issue is on the table again.

In 2014, the stakes were even higher. Christie Place homeowners were paying an average of $11,500 in real estate taxes and if Homestead were passed, this number would have been tripled to an average of $36,000 a unit. When it was not passed, it resulted in an average $160 bill for all the other taxpayers.

At the time, Christie Place residents argued that their units were designated for buyers age 55 and up, who are therefore not utilizing the schools. When they purchased the units, no one knows whether or not they were made aware that their assessment status could change. Since a change in the law would impose a burden on a very small segment of older residents and offer a minimal benefit to the community, Board members voted "no" to adopting the Homestead at the time.

However, since that time Scarsdale seniors who live in single family homes have called on the Board to adopt Homestead, as seniors in single family homes are paying high taxes and also receiving no benefit from the schools. They don't think it's fair to provide this benefit to senior condominium owners.

The Scarsdale Forum's Assessment Revaluation Committee urged the Village Board to adopt the Homestead Tax Option in 2014, and that Committee is now preparing a report on the Homestead Tax Option for 2016. Commenting on the issue committee member Robert Berg said, "Based on the comments of the Board members at the February 1 meeting and my conversations with a couple of trustees afterwards, it seems likely they are not going to adopt Homestead. I think there is no principled basis to perpetuate a massive tax break for the Christie Place residents which is being paid for by the rest of Scarsdale's taxpayers. The Trustees in our non-partisan system are not supposed to act in response to political pressure from the loud, the wealthy, the powerful, and the connected. But that's what they did in their disgraceful decision to object to the Monte Nido project, when they should have stepped aside and let the wealthy, powerful neighbors deal with the issue themselves. And that's what I fear the Board is planning to do again in regard to the Homestead Tax option. Tellingly, the Village's Advisory Council on Scarsdale Senior Citizens unanimously recommends that the Village Board adopt the Homestead Tax option in connection with the 2016 revaluation. The Council correctly notes, in its letter to the Mayor and Trustees, dated November 17, 2015, that it is especially unfair for the many Scarsdale seniors who reside in single family homes (many of whom faced substantially increased property taxes following the 2014 revaluation) that the Christie Place residents continue to receive special tax treatment."

The Village Board will hold a hearing on the issue on February 9 following their regular 8 pm meeting at Village Hall. If they adopt Homestead, then the School Board can decide whether or not to adopt it. If the Village Board votes no, the School Board will not consider the initiative.

Learn more by attending the February 9 meeting at Village Hall.