During 2018, many towns throughout Bergen County will be subject to reassessments. Municipalities such as Closter, East Rutherford, Carlstadt and Cresskill are included, along with Little Ferry, North Arlington, Hasbrouck Heights and Hackensack. Other municipalities that can expect a reassessment include Saddle River, Westwood, Teterboro, Woodcliff Lake and Oradell. Reassessments differ slightly from revaluations, which will influence local real estate. They are designed to determine the value of property, and understanding them and how they impact property owners is important.
How Revaluations And Reassessments Differ
The difference between a reassessment and revaluation is that revaluations need the services of an external company, while a reassessment can be performed via the office of the assessor. New assessments tend to cause confusion among homeowners, who believe incorrectly that an assessment increase will lead to higher taxes.
A town that has not been subject to reassessment or revaluation for a few years will typically have an assessment which is determined by a small percentage of their actual market value. Due to this under assessment, the region may raise its tax rate yearly so that the municipal budget demands can be satisfied. There is a great deal of expense and time involved with performing revaluations, which is why many towns wait a few years before conducting them.
How Reassessments Work
When reassessments are performed, a common objective is to get it to one hundred percent of the actual market value of the properties in the area. If this objective is achieved, the rate of taxation will fall commensurately, which means that in addition to moderate budget increases; the complete tax revenue for a town will remain at the same level as was the case before the revaluation took place. In this case the typical taxpayer won’t be affected by the revaluation, positively or negatively.
However, some residents will experience changes in their tax burden, which could be significant. The amount of change will depend on market trends for certain neighborhoods, which could see certain properties be assessed differently than others. Although the net effect resulting from revaluation might be tax neutral, there will always be a small number of tax payers who will benefit from it, while others will be adversely affected.
Should Property Owners Seek A Tax Appeal?
A revaluation which results in a tax payer being adversely impacted is usually not sufficient for them to successfully appeal the tax. In order for a property owner to successfully appeal their taxes, they must demonstrate that the most recent assessment surpasses the appraised market value for their property. Currently, taxable value is decided for October 1st for the year’s pretax. Any appraisal which bears valuation more than a month after October 1st has passed can be accepted as a type of evidence. However, if the property is over assessed, an official will need to be contacted for consultation.
