Bayonne runs low on cash to pay successful tax appeals
By Charles Hack/The Jersey Journal
October 16, 2009, 12:06AMJournal
Bayonne municipal government needs cash to pay successful tax appeals
Facing a 70-percent leap in tax appeals this year, the City of Bayonne may have to borrow money to pay off the claims that have merit, since the $2.25 million set aside for that purpose has been all but drained, city officials said.
The number of tax appeals jumped from 388 last year to 662 this year. So far this year, the city has refunded $1.5 million to some 500 property owners, officials said.
There are still more than 100 appeals to be dealt with, mostly from large commercial and industrial properties. These cases are now in state tax court, Bayonne's CFO and Business Administrator Terrence Malloy said.
With roughly $750,000 left in city coffers for future settlements, Malloy said the city might have to borrow money to pay tax refunds, or find funds elsewhere in the budget.
"As we continue to tighten numbers, I will sit down with the council and mayor to determine the correct course of action to finance this," Malloy said. "This may mean issuing short-term notes or running it through city budget, or both."
City officials attributed the skyrocketing number of tax appeals to the recession, which has driven property values down. But property owners haven't seen their taxes diminish.
This year's reserve for tax appeals was funded by diverting money from pension funds, after the state allowed municipalities to pay into pension funds at a reduced rate, officials said.
William S. Winters, an East Brunswick tax attorney who has filed 1,300 appeals across the state including some in Bayonne, said New Jersey tax courts are becoming backlogged with the number of appeals.
"In prior years it was much easier to settle tax appeals based on value on property," Winters said. "Now we have the additional concern that municipalities say they simply can't afford it."
Malloy called the problem "a statewide issue."
"This highlights the fact that in New Jersey we have been overly reliant on property taxes to provide municipal, school and county services," he said.
© 2009 NJ.com. All rights reserved.
Sunday, October 18, 2009
Wednesday, October 14, 2009
Property Taxes Too High? Fight Your Assessment and Win Big!
By Nancy F. Smith
published on BNET.com 10/07/2009
Hear that sound? It’s the thunder of angry homeowners stampeding to city hall after receiving their property tax bills. In Florida, condo owners are banding together to file joint challenges. In New Jersey, the state with the highest property taxes, appeals by Middlesex County residents tripled over the past year. And get this: The city fathers of Oshtemo Township, Mich., imposed a 1 percent fee to cover the costs of all the local tax appeals.
If you think your assessment is out of whack, fight back. As economist John Maynard Keynes said, “The avoidance of taxes is the only intellectual pursuit that carries any reward.” Although you can’t reduce your tax rate, you can challenge your assessment, which is the municipality’s estimate of the value of your house. A successful dispute could cut your property taxes by hundreds, even thousands, of dollars right away. “If you make a solid case for a reduction, you have a very good chance of getting some relief,” says Avi Spira, a New Rochelle, N.Y., attorney. “I’ve gotten reductions of $4,000 to $10,000 in my clients’ tax bills.” The best part: Those savings repeat year after year and could add up to tens of thousands of dollars over time.
published on BNET.com 10/07/2009
Hear that sound? It’s the thunder of angry homeowners stampeding to city hall after receiving their property tax bills. In Florida, condo owners are banding together to file joint challenges. In New Jersey, the state with the highest property taxes, appeals by Middlesex County residents tripled over the past year. And get this: The city fathers of Oshtemo Township, Mich., imposed a 1 percent fee to cover the costs of all the local tax appeals.
Though home prices have fallen roughly 18 percent a year since 2006, property taxes have actually risen # by more than 7 percent annually on average. Lately, cash-starved municipalities have had to compensate for reduced state aid in order to avoid slashing their budgets. So they’re trying to hold the line on assessments. The trouble is that many of the tax bills are flat wrong. The National Taxpayers Union estimates that 60 percent of taxable property is overassessed. Even accounting for the NTU’s antitax leanings, that’s a stunning statistic.
If you think your assessment is out of whack, fight back. As economist John Maynard Keynes said, “The avoidance of taxes is the only intellectual pursuit that carries any reward.” Although you can’t reduce your tax rate, you can challenge your assessment, which is the municipality’s estimate of the value of your house. A successful dispute could cut your property taxes by hundreds, even thousands, of dollars right away. “If you make a solid case for a reduction, you have a very good chance of getting some relief,” says Avi Spira, a New Rochelle, N.Y., attorney. “I’ve gotten reductions of $4,000 to $10,000 in my clients’ tax bills.” The best part: Those savings repeat year after year and could add up to tens of thousands of dollars over time.
Call ATLANTIC PROPERTY TAX CONSULTANTS today for an evaluation.
NJ Property Tax FAQs
1) Does my house have to be assessed above the current market value in order to file a successful appeal?
No. You can file a successful appeal if your assessment exceeds the director’s ratio in your community by more than 15%. For example, suppose the true market value of your home is $100,000. If the director’s ratio in your community is 60% that would equate to $60,000 (60% of $100,000). So, if your home is assessed at more than $69,000 (i.e. $60,000 times 115%), then you would have a legitimate basis for appeal.
2) What is the director’s ratio?
Each community sets a target average ratio of assessed value to true market value. This is known as the director’s ratio. The director’s ratio varies from one community to another and is subject to change each October 1.
3) How do I learn about the current director’s ratio in my community?
You can contact your local tax board. Or, you call Atlantic Property Tax Consultants. We have that information on file for many communities throughout the state.
4) Is it possible that the town will increase my property taxes if I file an appeal?
Atlantic Property Tax Consultants will not file an appeal unless we are confident that your assessment exceeds the maximum ratio (i.e.115% of the director’s ratio) in your community.
5) How do I determine where my assessment stands relative to the director’s ratio?
Atlantic Property Tax Consultants can easily help you determine the status of your assessment based on the director’s ratio in your community. Through our contacts we can obtain the necessary information, including:
• The director’s ratio in your community
• Your current assessed value
• The true market value of your home the preceding October 1.
6) When can I file a tax appeal?
Tax appeals must be filed on or before:
• April 1st
• Within 45 days of the day when the Assessment Notices are mailed, OR
• May 1st, if there’s been a municipal-wide revaluation or reassessment.
• Once an appeal has been filed, the County Tax Board schedules a hearing.
7) What is the purpose of the hearing?
The purpose of the hearing is to determine the validity of your appeal. In other words, have you successfully demonstrated that the current assessment is unfair. Remember, the assessment is assumed to be correct. The burden of proof lies with the taxpayer. The hearing is held in front of the tax board. You can represent yourself and present expert testimony from a licensed appraiser. The municipality is the opposing party and is represented by the municipal attorney. (Note: different rules apply to commercial properties.)
8) When are tax appeal hearings held?
Tax appeal hearings are generally held within three months of the April 1 or May 1 filing deadline.
9) Do I have to attend the hearing?
Unless you have reached a satisfactory settlement with the assessor before the hearing date, you should attend the hearing. If you miss or do not attend your hearing, your appeal will be dismissed ‘for lack of prosecution.’
10) What happens if I’m not satisfied with the results of the hearing?
If you are dissatisfied with the results of the hearing, you have the right to appeal to the NJ Tax Court. You have 45 days from the date your judgment was mailed to file a further appeal with the Tax Court of New Jersey.
How do I appeal my NJ Property tax assessment?
Seven facts every NJ property owner should know about property taxes in this state—how they are determined and your rights to appeal.
1) You appeal the assessment, not the tax.
In NJ, you don’t appeal your property tax amount. Instead, you appeal the assessed value of your property from which your property taxes are derived.2) The ratio between market value & assessed value is the critical issue.
Although declining home values have led to a situation in which many homes are assessed at more than their true market value, you may successfully appeal the assessment even if that is not the case.
In 1973, the NJ Legislature adopted a formula known as Chapter 123 to test the fairness of a property assessment. If the ratio of assessed value to true value exceeds the average ratio (also known as the director’s ratio) by 15% or more, the assessment is reduced to the common level, i.e., the director’s ratio.Every municipality has a director’s ratio.
This ratio varies from community to community and changes each October 1 for the following year. For example currently in Trenton, the director’s ratio is 61.38%. So any house in Trenton that is assessed at more than 70.59% of its market value qualifies for a reduction.
3) In the case of a community-wide reassessment, the assessed value must be 100% of true market value.
4) The burden of proof lies with the tax payer.
Under NJ law, the assessment is assumed to be correct. It is up to the tax payer to prove otherwise. In order to do this, you must:
• Know the ratio in your community
• Provide credible evidence that the assessment exceeds the highest level ratio of true market value as of the preceding October 1. Credible evidence is:
o The sale prices of comparable properties in your area
o Expert testimony by a licensed appraiser
• Submit your evidence to the tax board and the assessor at least 7 days prior to the hearing (if required).
5) must file your appeal by the appropriate deadline.
The deadline is:
• April 1 of the tax year• 45 days from the bulk mailing of assessment notices, or
• May 1st of the tax year if there has been a community-wide reassessment
6) The tax board renders its formal decision at an appeal hearing.
Tax appeal hearings are typically held within three months of the filing deadline. If you have reached an agreement with the assessor prior to the hearing, you may not be required to attend. If you have not reached an agreement in advance, you must attend; otherwise your appeal will be rejected for “lack of prosecution.” If you use expert testimony, your expert must also appear at the hearing.
7) If the tax board rejects your appeal you have the right to file a further appeal with the Tax Court of New Jersey.
If you choose to file a further appeal with the Tax court, you must do so within 45 days from the date the tax board judgment was mailed to you.
Declinig Home Values, many homes are over assessed
Declining home values have created a situation, in many municipalities, where property tax assessments no longer reflect current market values.As a homeowner, you may be able to reap substantial long-term savings by successfully appealing your assessment and reducing your property taxes.
If you plan to sell your home, you can also benefit from a successful appeal because lower property taxes make your home more attractive to potential buyers.Too often people fail to explore this savings opportunity. Some don’t realize they have the right to appeal. Others are discouraged by the complex and time-consuming appeal process.
Understand the basis of your assessment
Determine whether you are likely to benefit from an appeal
Mount a successful appeal
For more information about our service options, see Services & Fees or contact us for a free consultation.
If you plan to sell your home, you can also benefit from a successful appeal because lower property taxes make your home more attractive to potential buyers.Too often people fail to explore this savings opportunity. Some don’t realize they have the right to appeal. Others are discouraged by the complex and time-consuming appeal process.
Understand the basis of your assessment
Determine whether you are likely to benefit from an appeal
Mount a successful appeal
For more information about our service options, see Services & Fees or contact us for a free consultation.
Monday, October 12, 2009
Dont pay more than your fair share! atlanticpropertytax.com will fight any change in your assesment
Atlantic Property Tax Consultants
APTC has succesfully appealed hundreds of tax assesment for the tax year 2008 with great results. take advantage of your right to appeal your taxes STOP OVERPAYING!
We will try to keep you updated on the latest Revaluation updates in NJ
Six Essex County towns brace for property-tax revaluations
By Philip Read/The Star-Ledger
October 12, 2009, 5:11AMDavid Gard/ New Jersey Local News ServiceWest Orange municipal building in a June photo. West Orange is among the six Essex County towns facing property tax revaluations.
ESSEX COUNTY -- William Connolly will have to come up with at least an extra $3,108 a year to pay his property taxes. That’s roughly $260 a month, enough to drive, say, a 2009 MINI Cooper convertible out of the showroom.
“It’s almost seems criminal to me that they can raise your taxes 60, 70, 80 percent and basically tell you, ‘Tough,’” said Connolly, who lives on Livingston’s Crossbrook Road.
The Essex County suburb’s first property revaluation since 1965 is unleashing the same kind of angst as those that proceeded it in such places as Maplewood and Montclair, but it also signals the tail end of a game of catchup.
At the dawn of the millennium, many Essex towns had not had revaluations for decades, creating wide disparities in assessments that had unfairly had some homeowners paying too much and some too little.
“The longer you go, the worse it gets,” said Joan Durkin, Essex County’s tax administrator.
Then, often at the nudging of the Essex County Board of Taxation, first Maplewood, then the others undertook the costly and politically uncomfortable tasks. Now, six of Essex’s 22 communities -- Bloomfield, Cedar Grove, Roseland, Verona, West Caldwell and West Orange -- remain to finish revals in 2010 and 2011.
“During a revaluation, emotions run high,” said Rick Del Guercio Jr. of Appraisal Systems Inc., which conducted the door-to-door revaluation inspections in Livingston, Montclair and in towns across a dozen New Jersey counties.
“It’s simply a redistribution,” Del Guercio said. “There are always people who go down. There are always people who go up.”
In Livingston, in fact, the average homeowner’s property tax bill actually went down -- by $429.72 a year. Many homeowners, particularly in an upscale gated community called “The Regency,” saw their tax bills nosedive.
Such was the case with Peter Hanauer’s. His property tax bill plummeted from $13,767 to about $7,432 -- a 46 percent savings. Hanauer realizes that he has been on the wrong seat of the property-tax seesaw.
“Overcharged for the first 8 years I lived here,” he said.
To make matters worse, he just happens to be relocating to Florida. “They reduced my taxes, and I’m moving,” he said with a sense of resignation.
For those who remain to feel a revaluation’s sting in New Jersey, with its first-in-the-nation property-tax burden, the extra tab came be particularly grueling amid “The Great Recession.”
Even if it’s “just” an extra $1,000 or so a year, as was the case with Alex Colatruglio, a neighbor of Connolly’s who lives in a 1,460-square-foot Colonial with his wife, Angela, and 1-year-old daughter, Ava.
“I’ve got to tighten up,” he said of expenses. “We haven’t really taken any vacations the last couple of years, only local daytrips down the shore. ... You see a cereal box lately? It’s half the size and double the money.”
He’s scratching his head, too, about the $418,600 value the appraisers put on his home, a figure he said is considerably higher than the $380,000 value a financial institution put on the property when he applied for a small home-equity loan.
“If the bank is not saying that’s what it’s worth, why is the town putting on higher value?” he said.It’s similarly perplexing for Arlene Newcomb, whose taxes on a circa 1800 colonial on E. Mount Pleasant Avenue soared from $8,745 to $14,271, not including this year’s usual increases in school, municipal and county taxes.
One reason, she said, is likely because of her large property, once part of an even larger farm. “There’s no comps,” she said of comparable sales used to determine a home’s value. “It was their best guess. ... I could understand if it was a house that was brand new, with upgraded electric and updated kitchen, but we’re living with extremely 1940s stuff.”
It is cases such as these that can lead to appeals. Fueled in part by the fallout from revaluations, there were 6,487 tax appeals in Essex this year, almost double 2008’s 3,631, according to the Essex County Tax Board.
Now, more by design than arm-twisting, Maplewood, whose earth-shaking 2001 revaluation kicked off the game of catchup, has just contracted with Appraisal Systems Inc. for another in 2011.
“Isn’t that ironic? Back in the hot seat again,” said Victor DeLuca, than as now Maplewood’s mayor. “We did say we’d do it every 10 years.”
Since it’ll be only 10 years -- instead of 20 -- there isn’t expected to be as a tectonic shift in the property burden, he said, but there will be some. The evidence can be seen in an unusually high number -- 160 -- tax appeals this year.
“People were starting to get their own tax breaks. We lost about $2 million in assessments based on those appeals,” DeLuca said. “That means the rest of the people have to pick up the slack.”
In Newark, whose 48,376 properties dwarf all others, some $4 million has already been set aside to undertake yet another revaluation for 2012. Some towns are voluntarily doing a reassessment, a process just short of a full-blown revaluation but still intended to iron out disparities.
“This is really good. They’re on top of things,” said Durkin, the tax administrator. “Everyone’s paying attention. ... This whole last 10 years have been a learning curve for everybody.”
© 2009 NJ.com. All rights reserved.
APTC has succesfully appealed hundreds of tax assesment for the tax year 2008 with great results. take advantage of your right to appeal your taxes STOP OVERPAYING!
We will try to keep you updated on the latest Revaluation updates in NJ
Six Essex County towns brace for property-tax revaluations
By Philip Read/The Star-Ledger
October 12, 2009, 5:11AMDavid Gard/ New Jersey Local News ServiceWest Orange municipal building in a June photo. West Orange is among the six Essex County towns facing property tax revaluations.
ESSEX COUNTY -- William Connolly will have to come up with at least an extra $3,108 a year to pay his property taxes. That’s roughly $260 a month, enough to drive, say, a 2009 MINI Cooper convertible out of the showroom.
“It’s almost seems criminal to me that they can raise your taxes 60, 70, 80 percent and basically tell you, ‘Tough,’” said Connolly, who lives on Livingston’s Crossbrook Road.
The Essex County suburb’s first property revaluation since 1965 is unleashing the same kind of angst as those that proceeded it in such places as Maplewood and Montclair, but it also signals the tail end of a game of catchup.
At the dawn of the millennium, many Essex towns had not had revaluations for decades, creating wide disparities in assessments that had unfairly had some homeowners paying too much and some too little.
“The longer you go, the worse it gets,” said Joan Durkin, Essex County’s tax administrator.
Then, often at the nudging of the Essex County Board of Taxation, first Maplewood, then the others undertook the costly and politically uncomfortable tasks. Now, six of Essex’s 22 communities -- Bloomfield, Cedar Grove, Roseland, Verona, West Caldwell and West Orange -- remain to finish revals in 2010 and 2011.
“During a revaluation, emotions run high,” said Rick Del Guercio Jr. of Appraisal Systems Inc., which conducted the door-to-door revaluation inspections in Livingston, Montclair and in towns across a dozen New Jersey counties.
“It’s simply a redistribution,” Del Guercio said. “There are always people who go down. There are always people who go up.”
In Livingston, in fact, the average homeowner’s property tax bill actually went down -- by $429.72 a year. Many homeowners, particularly in an upscale gated community called “The Regency,” saw their tax bills nosedive.
Such was the case with Peter Hanauer’s. His property tax bill plummeted from $13,767 to about $7,432 -- a 46 percent savings. Hanauer realizes that he has been on the wrong seat of the property-tax seesaw.
“Overcharged for the first 8 years I lived here,” he said.
To make matters worse, he just happens to be relocating to Florida. “They reduced my taxes, and I’m moving,” he said with a sense of resignation.
For those who remain to feel a revaluation’s sting in New Jersey, with its first-in-the-nation property-tax burden, the extra tab came be particularly grueling amid “The Great Recession.”
Even if it’s “just” an extra $1,000 or so a year, as was the case with Alex Colatruglio, a neighbor of Connolly’s who lives in a 1,460-square-foot Colonial with his wife, Angela, and 1-year-old daughter, Ava.
“I’ve got to tighten up,” he said of expenses. “We haven’t really taken any vacations the last couple of years, only local daytrips down the shore. ... You see a cereal box lately? It’s half the size and double the money.”
He’s scratching his head, too, about the $418,600 value the appraisers put on his home, a figure he said is considerably higher than the $380,000 value a financial institution put on the property when he applied for a small home-equity loan.
“If the bank is not saying that’s what it’s worth, why is the town putting on higher value?” he said.It’s similarly perplexing for Arlene Newcomb, whose taxes on a circa 1800 colonial on E. Mount Pleasant Avenue soared from $8,745 to $14,271, not including this year’s usual increases in school, municipal and county taxes.
One reason, she said, is likely because of her large property, once part of an even larger farm. “There’s no comps,” she said of comparable sales used to determine a home’s value. “It was their best guess. ... I could understand if it was a house that was brand new, with upgraded electric and updated kitchen, but we’re living with extremely 1940s stuff.”
It is cases such as these that can lead to appeals. Fueled in part by the fallout from revaluations, there were 6,487 tax appeals in Essex this year, almost double 2008’s 3,631, according to the Essex County Tax Board.
Now, more by design than arm-twisting, Maplewood, whose earth-shaking 2001 revaluation kicked off the game of catchup, has just contracted with Appraisal Systems Inc. for another in 2011.
“Isn’t that ironic? Back in the hot seat again,” said Victor DeLuca, than as now Maplewood’s mayor. “We did say we’d do it every 10 years.”
Since it’ll be only 10 years -- instead of 20 -- there isn’t expected to be as a tectonic shift in the property burden, he said, but there will be some. The evidence can be seen in an unusually high number -- 160 -- tax appeals this year.
“People were starting to get their own tax breaks. We lost about $2 million in assessments based on those appeals,” DeLuca said. “That means the rest of the people have to pick up the slack.”
In Newark, whose 48,376 properties dwarf all others, some $4 million has already been set aside to undertake yet another revaluation for 2012. Some towns are voluntarily doing a reassessment, a process just short of a full-blown revaluation but still intended to iron out disparities.
“This is really good. They’re on top of things,” said Durkin, the tax administrator. “Everyone’s paying attention. ... This whole last 10 years have been a learning curve for everybody.”
© 2009 NJ.com. All rights reserved.
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