April 21, 2025
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.
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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