Property tax timing in Nassau can sneak up on you, especially when your lender manages an escrow account. If you are buying or selling in Locust Valley, the school and general tax calendars, plus any village charges, directly affect your cash flow and your closing statement. You deserve a clear, local guide. Below, you’ll learn how the Nassau schedule works, what your servicer must do by law, and how to plan around key dates so there are no surprises. Let’s dive in.
How property taxes work in Locust Valley
Two tax streams to track
Most Locust Valley owners see two main bills each year: school taxes and general (town and county) taxes. In Nassau, school bills are typically mailed in October, with first-half payments accepted without penalty through November 10 and second-half through May 10. General bills are mailed in January, with first-half accepted without penalty through February 10 and second-half through August 10. You can confirm the current year’s mailings and due windows with the Town of Oyster Bay’s Receiver of Taxes frequently asked questions.
Village and special district charges
Some Locust Valley properties sit within incorporated villages or special districts. If a home is inside a village such as Lattingtown, you may see a separate village bill with its own cycle, often in mid-summer. Always confirm whether a parcel appears on the village roll using the Village of Lattingtown tax roll, and check for special district charges like water or fire.
STAR and assessment changes
The New York School Tax Relief program (STAR) may reduce school taxes for eligible homeowners. You can review certified Basic and Enhanced STAR amounts for Locust Valley on the state’s STAR exemption tables. If you plan to challenge your assessment, note that Nassau’s grievance period typically runs in winter. See the county’s assessment review calendar for this year’s dates on the Nassau ARC schedule.
What your escrow account must do
Initial escrow disclosure and deposit
When your loan requires escrow, your servicer must provide an initial escrow statement at settlement or within 45 days. This shows the monthly escrow amount, the initial deposit collected at closing, and the projected disbursement dates for each tax line. These requirements come from federal RESPA rules in 12 CFR 1024.17.
Annual analysis, cushion, and shortages
Your servicer must analyze your escrow annually and send a statement within 30 days after the computation year ends. By rule, the cushion they hold cannot exceed one-sixth of the estimated annual disbursements. If a shortage appears, the servicer must explain how it will be collected, usually over 12 months. See the federal standards in 12 CFR 1024.17.
On-time payments to avoid penalties
Servicers must pay taxes on or before the deadline to avoid a penalty, as long as you are not more than 30 days overdue on your mortgage payment. If a taxing authority allows installments or a discounted lump sum, servicers may choose the method permitted by the rules and your agreement. The on-time payment duty is set by 12 CFR 1024.17.
Timing scenarios around Locust Valley closings
Closing near October or January
If you close after school bills mail in October or close just before general taxes are due in January, expect careful prorations. Title companies use the actual bills and due dates to split responsibility between buyer and seller for the time each owned the home. The Town of Oyster Bay outlines closing practices, duplicate bill policies, and payment handling in its real estate closing information.
When tax bills go to the lender
If your mortgage has escrow, local collectors often mail the bill directly to your servicer. That is standard practice noted by the Town of Oyster Bay’s Receiver of Taxes. You should still keep copies of bills and stubs for your records and closing prorations. Review the town’s frequently asked questions for how billing is addressed.
Assessment grievances and your escrow
A successful assessment grievance can lower your taxes and create an escrow surplus, which your servicer will address at the next annual analysis. If your assessment rises, your monthly escrow may increase after the next analysis. For grievance deadlines and steps, see the Nassau ARC schedule.
Delays in local billing
If a municipality delays setting rates or mailing bills, servicers still must estimate and pay on time to avoid penalties. Federal guidance allows servicers to rely on prior known amounts and required due dates when bills arrive late. See the federal discussion of timing and estimates in the Federal Register commentary.
Simple checklist to stay ahead
- Current and prior year tax bills or stubs for school, general, and any village lines. See the town’s closing guidance for procedures and duplicate bill policies in the real estate closing information.
- Proof of STAR enrollment or current eligibility using the state’s STAR exemption tables.
- Your mortgage servicer’s most recent escrow analysis and contact details, plus your monthly statement showing escrow.
- Nassau County grievance dates and steps on the Nassau ARC schedule.
- Village confirmation if applicable, such as the Village of Lattingtown tax roll.
- Special district status and billing, including the Locust Valley Water District, which may affect liens if unpaid.
Key dates at a glance
- School taxes: bills mailed in October. First half accepted without penalty through November 10. Second half accepted without penalty through May 10. Confirm each year’s dates with the Town of Oyster Bay frequently asked questions.
- General taxes: bills mailed in January. First half accepted without penalty through February 10. Second half accepted without penalty through August 10. Verify current-year timing with the Town of Oyster Bay frequently asked questions.
Planning to buy or sell in Locust Valley this season? With the right preparation, you can align escrow, prorations, and due dates for a smooth closing and predictable cash flow. For discreet, end-to-end guidance from contract to keys, connect with Ellen Zipes.
FAQs
In Locust Valley, when will my lender pay taxes from escrow?
- Servicers must pay on or before the deadline to avoid a penalty, provided you are not more than 30 days overdue, as set by 12 CFR 1024.17.
If I close in October or January, who pays which taxes?
- Closing statements prorate school and general taxes based on ownership dates, using the actual bills and town procedures described in the real estate closing information.
How much escrow cushion can my lender hold?
- Federal rules cap the cushion at one-sixth of the estimated annual disbursements, per 12 CFR 1024.17.
How do assessment grievances affect my escrow payment?
- If taxes decrease after a successful grievance, your next annual escrow analysis may show a surplus or lower monthly payment; see the Nassau ARC schedule for timing.
Do village taxes apply to every Locust Valley property?
- No, only parcels inside an incorporated village have village levies, which you can verify on resources like the Village of Lattingtown tax roll.
