Does revaluation have any correlation to the current merger situation - i.e. is there any political maneuvering / spinning that could benefit those for or against a merger?
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Merchantville Blog 2.0
- Mville Citizen
- Merchantville, NJ, United States
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21 comments:
Don't have a clue. Did watch the transaction at 100 W. Maple. Listed at $280k, then went down to 265k, now under contract after open house this weekend. How does that affect the rest of us? Not a great comp, by any means if you take in that house for what it is -absolutely beautiful old victorian and HUGE. The buyer got a real bargain.
When our tax assessor announced the planned revaluation to Council a few meetings ago he mentioned in passing, with a smile and some hesitancy, that it would make it easier for Cherry Hill to accept us.
Do lower comps make the tax assessor job harder or easier? Even our best properties are now more in line with Cherry Hill West market wise. Don't think the revaluations are much to worry about with property values being down - it won't be that big of an increase. The home mentioned in the first comment was paying almost $12k if you look it up. And our tax rate is higher than Cherry Hill so the tax assessor's comment really has no impact on their accepting us or not. With a merger, we would be put in line with the rest of that community's tax rate, not Merchantville's. His comment is insignificant, just snide, like the rest of 'em.
As far as the increase from assessed value: The last revaluation was in 1991. According to our assessor, homes in Merchantville are assessed, on average, only 58% of market.
The average home in our area, based upon Zillow tracking, has increased 65% since the year 2000. It increased at least that much in the 9 years before that.
Based upon the increase since 1991 and our current assessments, most homes will double their assessment in the revaluation.
Tack on another $100,000-$150,000 to your current assessment and that should give you a ballpark.
If you were reassessed more recently (the last 5 years), you won't see much change or maybe a decrease.
Here is the website to use to check assessments in Merchantville. It is the official NJ Tax Assessors website. The service is free.
http://tiny.cc/w8lyb
As a tip: Once the drop boxes are set to "Camden County" and "Merchantville", you can type the name of a street for "Location".
This will give you a list of all the properties on that street and you can see their current assessments in addition other info about the property.
Ideally, revaluations to market value fairly spread the tax burden to properties based upon value. Revaluations in themselves do not increase the total tax levy. Individual properties will see an increase or decrease in taxes based upon their value relative to other properties in town.
In the past, some towns have used a revaluation as a cover for large tax increases. This was documented by The Star-Ledger and reported on nj.com here http://tiny.cc/w8lyb
I think a large tax increase is not likely to happen in our case due to the new 2% cap on tax increases.
An adjustment to market value is the goal of the revaluation. In such a small town as this, and because of the paucity of sales in the past 12 months, comparable homes may not be easy to find. Assessors use the SR1A cards to track sales. These are official records of a sale and are coded to indicate whether a particular sale can be used for assessment purposes. These cards can be viewed upon request at boro hall, or you can purchase access to a website that has them here www.vitalgov.net The last time I did this, it cost $25 for 3 months of unlimited access.
Generally, a good comparable has a similar location, size, age and construction. For tax assessments, "size" and "location" seem to be the greatest factors. In other contexts, condition plays a big role but my experience with tax assessments is that assessors are mainly concerned with condition when it means the house is better. They don't take much value off for items that are in poor condition, but they add for items that are new. For eg, that cracked bathroom sink and mildewed tile won't mean much to them, but the new powder room will. Major items that are obsolete, for example, heating systems, will lower your value.
The RFP (available on merchantvillenj.gov) goes through the steps the revaluation company will be required to take including exterior and interior inspections. Your inspection is important because the inspection determines whether the information on your tax assessment record (such as size of house, date of last sale, major improvements) is accurate.
This is a long post so I will stop here. Please correct my information if you think I have stated something incorrectly.
Alice: Revaluations in themselves do not increase the total tax levy.
I may have argued this point before, and if I did wrongly someone needs to correct me, but my understanding is that revaluation of a town could increase the county's tax levy.
How does the 58 percent penalty (going to zero) play out in the valuation averages you researched, Alice?
A couple of corrections:
According to the county website, for 2010, Merchantville is assessed at 54.62% of "true value" not 58%. http://www.camdencounty.com/sites/default/files/files/2010.pdf
The goal of a revaluation is "true value" not market value. Which is why that outdated kitchen color and worn carpeting doesn't matter to the assessor.
@ktbfw--
We would go to 100% equalization, not 0, after a revaluation. And Mr. Dymond may have meant the 2011 rate is 58%. 2011 is not posted yet on the county website. The equalizaion rate is not a "penalty." It's needed to equalize taxes among municipalites by making every assessment 100% of true value. You will be glad of it especially after the revaluation.
Higher valuations don't increase the levy, they redistribute taxes.
A higher assessment on your property could result in higher taxes for you if your share of taxes increases as a result of the increased assessment.
Example:
Total muni taxes are $1,000. And there are only 3 properties in the municipality.
Before the revaluation, Blackacre is assessed at $300; Whiteacre is assessed at $150 and Greenacre is assessed at $50.
Under that assessment, Blackacre pays $600; Whiteacre pays $300; and Greenacre pays $100.
After the revaluation, everyone's assessment is increased to true value. Blackacre is now $6000; Whiteacre is $6000 and Greenacre is $8000.
Blackacre now pays lower taxes at $300; Whiteacre pays the same tax at $300 and Green acre pays more tax at $400.
The tax levy remained the same.
I think your county taxes will follow your municipal taxes in a revaluation. If the revaluation makes you muni taxes higher, than your county taxes will be higher, and so on.
@ktbfw--Your question, as I understand it, is this: would your county taxes get an extra bump based upon Merchantville being assessed at 100% of true value? The equalization rates already operate to set everyone to 100%. If the equalization rates are accurate, you shouldn't see an extra bump in county taxes by going to an actual 100% of true value. To the extent that the equalization rate is inaccurate I think you would see a bump, or a dip, in county taxes in the first year.
So is this revaluation mean that those of us who have been on the higher end of the taxpayers in Merchantville may actually see a decrease?
To the extent that the equalization rate is inaccurate I think you would see a bump, or a dip, in county taxes in the first year.
I was contrasting the Merchantville equalization rate (54% or 58%) to your quoted "Zillow" showing the average value having increased 65% since 2000. That difference suggested to me that the County equalization rate could be inaccurate; however, I don't know the year of the last valuation.
The "bump" you mention could be a significant tax increase in a big chunk of our property taxes.
Mergers, consolidations, shared services save money. Bottom line.
Thanks to Alice for providing the url: http://tiny.cc/w8lyb
very interesting.
Does anyone know what the codes mean? Especially "Bldg Desc" (building description) and "Style".
I don't see where it notes the number of bedrooms or baths. Does the tax office keep records of this?
Your property tax card has this information. It is important to check your property tax card for accuracy.
The NJACTB website doesn't have a list of the codes used and I have mostly just guessed. "2S" means "2 story" and I think "1G" means "1 car garage".
John Dymond certainly knows and if you e-mail him I am sure he will answer.
ktfbw
65% since 2000 is just that--a value increase since 2000. It doesn't say the specific difference in 2010 and it cannot be used to judge whether the 58% difference form assessed to market is accurate.
It is difficult to assess the difference for all properties. I look at my own and I think 58% is too great a difference. I look at some other properties on my block and 58% seems too low.
Some people will see a tax increase, and some will see a decrease after the valuation. I suggest that people have a good look at their own assessments and see if the 58% applies to them.
Hasn't council announced a very small tax increase this year? In that case, the assessments will make all the difference for most people.
Yes they do. This will happen - stop living in denial with derogatory comments. There is nothing to be "mad" about. These are the times we live in, like it or not. Christie is helping this happen, sorry.
does this revaluation mean that those of us who have been on the higher end of the taxpayers in Merchantville may actually see a decrease?
If your assessment is more than 58% of true value you would likely see a decrease in your taxes assuming everyone else is at or below 58%.
When I appealed my taxes 2 years ago, my assessment was at 80% of true value at a time when the common level ratio was below 55%. After appeal, my taxes went down over $1,000.
"I wake up each morning determined to both change the world and have one hell of a good time. Sometimes this makes planning the day a little difficult."
E.B. White
Today I saw an NJEA ad on TV about N.J. having the greatest number of students doing well on the Advanced Placement Test. Not mentioning that N.J. is one of the heaviest populated states, a model teacher in the ad remarked that she felt she had contributed to the success of students on the A.P. She asked for public support of N.J. teachers.
Well, taking account of one law of physics, that every upside has a downside, what do teachers think is their contribution when N.J. children in numbers fail the State's minimum standards?
From school people I have heard lots of excuses, including "the renters" and "the poor" and "the high mobility" and "the busy working parents", but I have not heard any taking ownership words for students failing to meet standards.
A new school budget is being presented to us. Let me tell you I am annoyed that our school board would tack on the school administrator's recommendation to hire an outside contractor to tutor students in basic skills while our teachers sit in the building, getting paid, doing whatever they want ... or doing nothing ... while the contractors work in classrooms.
Just as TV ads must include disclaimers that a product may cause harm to individuals, the school budget should carry a disclaimer that any progress our students will make in basic skills will NOT be the result of our teachers' contribution.
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