The good news... and the bad news...

[njriverman]

The good news... and the bad news...

Tax values may double in 3 towns
Tuesday, January 01, 2008
By Jessica Beym
jbeym@sjnewsco.com
Homeowners in three Gloucester County towns can expect to see their assessed property values double on average in 2008 as Monroe Township, Newfield and Wenonah complete revaluations that are intended to bring all real estate up to the current market rate.

The next few months will likely keep tax assessors busy holding meetings with property owners to discuss their new assessments, and also keep the Gloucester County Board of Taxation occupied if homeowners plan to appeal the new figures.

What property owners need to keep in mind, the tax assessors said, is the revaluation is intended to bring every property up to market value and redistribute the tax burden accordingly.

"It's not about taxes," said Gloucester County Tax Administrator Ed Burek. "It's about the market."

If every property value doubled and the local budget stayed exactly the same, homeowners would pay the same in taxes.

But because the increases will vary, some homeowners could be paying less in taxes, or more in taxes even before the new budget is set, Burek said.

"Realistically, it's nothing to fear," Burek said of property revaluation. "Equality is what everybody's looking for."

When the ratio of true-to-assessed values what it sells for on the market and what the township assessment is dips to 70 percent, the county begins to look at that town, Burek said. Ten of the 24 municipalities were at a 60 percent ratio, or slightly above it in 2007. The rest fell between 53 and 59 percent.

To bring the properties up to the current market value, each of the three towns had to hire outside firms to help inspect every property in town.

Details such as the location of the property, square footage, and whether or not there's a fireplace or finished basement all make a difference in the value of the home, Burek said.

In the final weeks of the year, the town's tax assessors mailed out the new assessments to property owners, who then have an opportunity to review the information with the township and the firm.

In Monroe Township the assessments for residential homes doubled on average, said Tax Assessor Bruce Coyle. Other homes the assessment may have gone up, but less than twice the original amount. Others, it may have been more than doubled, he said.

"That's where the market change is in the larger home," Coyle said. "On the $600,000 house, the market dropped."

In Wenonah, which has a population of less than 3,000 and an eclectic mix of older and newer homes, the average assessment increased by 2.2 times, said Assessor Roy A. Duffield.

"Nearly every resident allowed their property to be inspected," Duffield said. "We had a few refusals but certainly you'd expect that. We have to come up with a value for their homes and we'd rather base it on accurate information rather than just looking at their house from the curb."

Newfield residents will see their assessments increase an average of 2.31 times, according to Assessor Tim Mead.

"Some went up more than that, some went up less," said Mead. "So if you went up 2.31 times, you'd stay the same in taxes.

Tax bills for the first two quarters of 2008 were sent out last year, but the money that will be collected is based on the old assessments and the 2007 tax rate. Once the towns approve their new budgets, the second half of the tax bills will be sent out and adjusted to account for the difference.

To prepare residents for their new bills, Duffield gave each homeowner in Wenonah an estimate of what their tax bill would look like with the new assessment if the spending plan stayed the same.

A common fear and misconception residents have is that if their property value doubles, so does the amount they pay in taxes.

"We've tried over and over and over to make that clear to people, and yet we still have some people that think that's going to happen," Duffield said. "If somebody's taxes go up beyond what we estimated, it's not because our estimation is wrong. It's because (the municipality is) spending more."

In the coming months, Burek will be meeting with assessors from other municipalities to see if their tax maps are up to date and if they have a plan in place when the time comes to revalue.

Burek said he will be meeting next year with some of the towns where the ratio has dropped too low, to see if they have all their tax maps and systems updated. Ratios in 10 towns decreased more than 5 percent since last year, according to Burek's figures.

Harrison Township will undergo the process this year.

For larger towns, like Monroe Township which has some 15,000 properties, the process can be costly. Monroe spent $700,000 on a contract for the revaluation.

Burek said the hefty price tags could be avoided if towns were to update their files and property values more regularly.

"If you do it every two, three years, you'd be in good shape," Burek said.

From the Gloucester County Times,
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