History of Special Taxing Districts
on Long Island
When the New York State legislature created New York City in 1898, the Long Island towns of Hempstead, North Hempstead, and Oyster Bay were left out of the legislation. A year later those towns, along with their incorporated villages and unincorporated areas, came together to form Nassau County.
As public demand for services—such as drinking water, fire protection, road maintenance and repair, sewer service, and waste disposal--increased in the new county, New York State authorized the establishment of “improvement districts3” to help meet this demand. The subsequent proliferation of Special Taxing Districts responded to the growth and development needs of new neighborhoods and growing communities throughout Nassau County. The fundamental basis of Special Taxing Districts has not changed since then. They still provide essential community services, in return for which the community’s residents pay special taxes.
Because Nassau County has the distinction of being the first truly suburban region in the United States, its political structure has lead itself to Special Taxing Districts spreading to pandemic proportions. Currently, Nassau County is criss-crossed with hundreds of small independent government entities that provide various services. In many cases, homes on the same block, or even across the street from one another are part of different districts that provide various services, and as a result pay different tax rates for essentially the same services.
3 Chapter 516, Laws of 1928
