Southampton Reassessment Freeze to Expire in 2025. Change Coming?

The Town of Southampton has been an active participant in New York State’s Cyclical Assessment Program under RPTL §1573, conducting a reassessment of all properties at 100% of market value on an annual basis from 2004 through 2018.  Municipalities that commit to revalue properties at least once every four years are eligible to receive a grant up to $5.00 per parcel, or a maximum of $500,000. See: Publication 1028:2/14:Guidelines for Cyclical Reassessment:Pub 1028:Pub-1028:pub1028 (ny.gov)

In 2019, the Southampton Town Board voted to postpone the Town’s annual reassessment policy for a two-year period, as of the 2020/21 tax year. The Town’s policy change responded to public pressure following a year where assessments increased on average by 10% town wide. The Town Board formed a committee to review the Town’s assessment policies. However, the State’s Cyclical Assessment program required that the Town reassess again within 4 years.  Otherwise, the Town must withdraw from the program.

In 2020, the Covid-19 pandemic resulted in a dramatic shift in the Town’s real estate market.  The Town had the opportunity to reassess and take advantage of the influx of sales data upon the expiration of the 2-year freeze, but the Town Board chose to delay for another year. When the third year of the freeze ended, the Town Board postponed the implementation of the Town’s next reassessment project until 2025. See: Southampton Town Board Agrees To Postpone Reassessment to 2025 – 27 East

Since the Town ceased assessing at 100% of market value, it is required to assess all properties at a uniform percentage of value (equalization rate) that is determined by the State’s Office of Real Property Tax Services utilizing residential sales data – even though the ratio applies to commercial properties. If the assessment ratio decreases, a property’s assessed market value increases. The Town’s shift in policy, coupled with the extended reassessment freeze during a residential real estate boom, has resulted in a drop in the Town’s assessment ratio by nearly 40% since 2021, increasing assessed market values throughout Southampton by nearly 40% as of the 2024/25 tax year.

In public work sessions, the Town Board and Assessor’s office have indicated that it would be their goal to reassess all properties as of the 2025/26 tax year. The Town Board must approve a reassessment plan by October 2024, for the Town to maintain its participation in the State’s Cyclical Assessment Program. As such, Southampton taxpayers should be prepared for a Town-wide reassessment in 2025, and consult with an experienced real property tax and assessment review attorney.