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Gerardryan
| | Posted on Wednesday, January 24, 2001 - 11:26 pm: |     |
MAPLEWOOD REVALUATION FREQUENTLY ASKED QUESTIONS
Some of these questions and answers come from the "Maplewood Revaluation Fact Sheet" that was sent to homeowners along with the notifications that the field staff would be visiting homes. The remainder of the questions have come from citizens over the last month.
Original Fact Sheet Questions and Answers:
What is a Revaluation?
Revaluation is the comprehensive examination and assessment of every property in the Township of Maplewood for the purpose of fair tax apportionment. It will bring all property assessments to their current fair market value as of October 1, 2000.
Why is Maplewood doing this now?
The Township's assessments currently reflect an average ratio to market value of about 36%. Since this is an average, some properties are assessed at a higher and some at a lower ratio to true value than others are. The revaluation is being performed to assure that the tax levy is fairly distributed among property owners.
Who will do the revaluation?
The Township has retained Certified Valuations, Inc. of Randolph, NJ, a firm with a long history of revaluation and appraisal work.
How does Certified Valuations carry out its work?
The firm will carry out these major parts of the project:
1. Examine all recent real estate sales and any that occur during the project to establish actual market prices for arms length dealings. Distress sales, sales between family members and certain other types of sales are not included.
2. Inspect the inside and outside of all properties in the municipality in order to develop individual descriptions and records and to establish the basis of value.
3. Develop land-value formulas for various parts of the Township.
4. Perform individual appraisals of each residential, industrial and commercial property.
5. Analyze the income and expenses associated with income-producing properties.
6. Assign an estimated market value to each property.
7. Notify all property owners, showing the details used to assess their properties.
8. Meet with property owners, which includes an individual appeal process for those whose question or disagree with the new assessment.
When will it be done?
The work will start this spring. The Township will notify property owners when inspections will begin in their area.
Isn't this just a way to raise taxes?
No, the revaluation will simply ensure that taxes are apportioned fairly.
Won't everyone's assessment increase?
Most assessments will probably change because property values have risen since the last revaluation, but not at the same rate.
How will this affect my taxes?
Until the revaluation is complete, accurate, individualized answers are impossible. However, the assessed value is only one component in determining the tax rate. The other is the sum that each entity (municipality, county and school) determines is required to operate, which is the amount to be raised in taxes to support the annual budgets. The amount to be raised in taxes divided by the total assessed value of all properties then determines the tax rate. The tax rate applied to the assessed value of a particular property determines the amount of taxes on that property.
How can I make sure my new assessment is fair?
Toward the end of the project, Certified Valuations will send you a notice of your proposed new assessment. Informal hearings will be scheduled so that every property owner can meet with a representative to discuss any questions relating to their assessment on a one on one basis.
Won't assessment discrepancies develop again in a couple of years?
No doubt different market factors will affect different properties in different ways. The value of one style of house, or one price range, or one neighborhood will change at a different rate than other classes of property. For this reason, all assessment details will be entered into a computer database. This will permit analysis of sales by class of property, style of house, neighborhood, price range, and other factors. The Township Assessor will be able to isolate groups or classes of properties that have changed in relative value and apply revised assessments solely to those properties. Those revised assessments can move either up or down, so if a particular segment of the market suffers a downward change, the Assessor can change assessments to reflect that fact. This can be done as needed, without waiting for another revaluation.
Will businesses and industry have to pay a larger share of the tax levy?
The major goal of the revaluation is to make all assessments, including business assessments, fair and equitable. By New Jersey constitutional mandate, all properties÷residential, commercial and industrial÷must be assessed at the same rate. Businesses cannot be assessed at a higher or lower percentage than homes.
How are values estimated?
Three approaches are used to estimate the value of properties:
1. Capitalized current net income attempts to estimate market value for income-producing properties, and is often the most useful approach for commercial properties and apartment houses.
2. Depreciated replacement cost attempts to estimate the cost of replacing structures, less an allowance for depreciation and wear. This is often the most useful approach for special purpose properties.
3. Market comparison attempts to estimate the value of a property based on sales of similar properties and is the most useful for residential properties.
Certified Valuations, Inc. will consider each of these approaches in the valuation of every property. |
Chip
| | Posted on Sunday, February 11, 2001 - 4:01 pm: | |
We on Winthrop Place would like to thank Mayor DeLuca for coming out to our block to help us understand next steps as we move forward. Mr. DeLuca came to a neighborhood which is quite angry and frightened about losing our neighbors and thereby our super neighborhood. We have been an association for years, not a group of neighbors brought together by this crisis. Thank you, Vic, for taking the time to meet with us and "stick you head in the lion's mouth." Your willingness to discuss this was much appreciated. |
Townie
| | Posted on Sunday, February 11, 2001 - 9:48 pm: | |
Chip,
Why don't you post this on the main message board, and if there was anything you felt that you learned, share it with others if you think it would help change atmosphere from angry and frightened to something more reasonable.
Kathleen |
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