Newsday Cover Story: South Shore Mall's $25M Tax Refund

Author: Sam Kmack, Newsday

Newsday Page 2 Summary

South Shore Mall Wins $25 Million Property Tax Refund

• South Shore Mall’s assessed value was reduced by ~75%, from over $315 million to under $100 million annually (2021–2025).
• As a result, the mall’s annual property tax bill dropped from about $11.2 million to $3 million.
• Suffolk County will refund at least $25 million, paid out in four installments through 2027.
• The mall’s legal team argued that prior assessments were “arbitrary and capricious,” citing declining rental revenue and store closures.

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Newsday Page 3 Summary

• Islip hasn’t conducted a full reassessment since 1979, contributing to uneven tax distribution.
• Mall values are declining nationwide due to anchor store closures, e-commerce growth, and a shift toward experience-based retail.
• South Shore Mall lost major tenants, including Sears (2015) and Lord & Taylor (2020).
• In 2023, a group of investors purchased the mall as part of a $196 million deal.

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