Advocates Urge Governor to Allow Partial Property Tax Payments

ABLI & LIBI: Time is always the most valuable commodity in business, every added day could mean the difference between survival or failure for countless businesses

In a letter to NYS Governor Andrew Cuomo, the Association for a Better Long Island (ABLI) and Long Island Builders Institute (LIBI), regional economic advocacy organizations whose combined membership represent the region's largest taxpayer, are renewing their call for property tax relief as the economic impact from the COVID-19 pandemic begins to place a financial stranglehold on businesses, large and small, and residential property owners.

The economic development organizations are urging Governor Andrew Cuomo, via Executive Order or legislation, to allow for property taxpayers impacted by the COVID-19 pandemic to be afforded the option of partial property tax payment, or installments without penalties when this year’s deadlines of May 10, 2020 in Nassau, and May 31, 2020 in Suffolk, come due. This is an alternative option to a real property tax payment deadline extension, either which would have a dramatic positive economic impact for Long Island. In a March 23, 2020, ABLI & LIBI previously wrote to urge a real property tax payment deadline extension.

In a joint statement, ABLI’s Executive Director Kyle Strober and LIBI CEO Mitch Pally stated, “There is a recognition that government must fund essential services and those revenues come from taxes paid by small and large businesses as well as residents. But there also needs to be a recognition that businesses that are closed and residents who are out of work simply do not have the means of cutting checks with funds that no longer exist. Recognizing that reality is now an urgent priority and needs to be addressed through government policies that echo the extraordinary steps taken during The Great Depression.”

In their letter, ABLI and LIBI requested that the Governor, via Executive Order or legislation, extend the period for paying these taxes or permit partial payments with no additional interest or penalties. Section 925-a of the real property tax law gives the government the ability to extend the payment time frame up to 21 days. If the taxes aren’t paid within the designated extension, or installment payments are missed, then the same interest and penalties should be in place had there been no extension. Section 20 of the Executive Law allows such action. The letter also cites a bill sponsored by NYS Senator Monica Martinez, S.8138, that permits local municipalities to delay property tax payments.

A reminder of the economic aftershocks

Mr. Strober warned, “COVID 19 is creating a deep and profound tremor on Long Island’s economic landscape. Every day, ABLI is inundated with member calls, concerned about our regions long term economic viability should certain preventive actions not be taken immediately. Extending the property tax payment deadline or permitting partial payments creates a relief valve for an economy where the pressure gauge remains in the red.”

Mr. Pally stated, “As the business and development community begin to assess the significant implications of a region now `on pause,’ so too, do local and state government leaders need to consider what they can do to ensure the economy can be quickly restarted when the pandemic is declared over.”

Members impacted

Small businesses, who drive Long Island’s economy and make up the ABLI & LIBI membership, are extremely concerned about the upcoming property tax payment deadline. An extension or partial payment options could be the difference between survival or failure for countless businesses.

Nick Dalvano, All Ways Elevator, said “An extension or ability to pay a partial property tax payment without penalty could make the difference between our business’ viability post COVID19.” For over 30 years, the family owned and operated business All Ways Elevator, located in Hauppauge with over 60 employees, has specialized in service, repair, modernize and maintain all makes and models of passenger, freight, LULA elevators and dumbwaiters.

Dave Bloom, owner of Pine Aire Truck Service, said “The on-going pandemic has greatly drastically reduced our monthly revenues, leaving me wondering how I will make the upcoming property tax payment. There is no guarantee federal assistance will arrive in time. Tax relief in the form of an extension or partial payment would be of great benefit in the effort we will make to get back to normal as soon as possible. Additionally, My family and I are also Islip residents and we are honestly concerned about falling behind on our personal expenses as well.” Pine Aire Truck Service is based in Bay Shore for over 30 years, specializing in truck repair and maintenance, truck consulting and used truck sales.

Both Mr. Dalvano and Mr. Bloom are available upon request.