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Tuxedo
Citizen
Username: Tuxedo
Post Number: 69
Registered: 7-2004
| | Posted on Tuesday, July 11, 2006 - 3:37 pm: | 
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When will S.O. reassess our property taxes? And is the property value based on House Type, Square Footage, Lot Size or both? |
MHD
Citizen
Username: Mayhewdrive
Post Number: 4395
Registered: 5-2001
| | Posted on Tuesday, July 11, 2006 - 3:48 pm: |
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From what I believe I heard last night, a revaluation firm will be chosen by the end of this month. They will begin gathering data late this year or early next year and complete by October 2007. The new tax rates will be in effect in 2008.
I believe property value is based on everything about your house such as the amenities, size, location, lot etc. |
Bob K
Supporter
Username: Bobk
Post Number: 12109
Registered: 5-2001
| | Posted on Wednesday, July 12, 2006 - 7:48 am: |
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As some of you know we recently moved from MW/SO to West Orange. We have Comcast cable and on the public access channels we often get Montclair broadcasts. Last night I caught a presentation being made by their reval firm, I believe American Appraisals, outlining how the system works and procedures for review, up to the NJ Supreme Court. The presentation was done by the appraisal company and it was pretty professional and actually understandable, something lacking when MW did its reval a few years ago.
Has SO done anything like this yet? Aren't SO and Montclair having their revals at the same time?
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Soparents
Supporter
Username: Soparents
Post Number: 1984
Registered: 5-2005
| | Posted on Wednesday, July 12, 2006 - 7:53 am: |
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Bob K,
I think on Monday the 16th there is a meeting where 3 firms are going to make presentations to the board. I think this is so that the town can choose one who will do the appraisals. My mind being foggy right now I may be wrong, but I thought I heard the time of 6.45 to about 8.30pm being mentioned.
It would be nice if we could be told how the appraisal process actually works. On Monday I was just hearing that it is "neutral". Dr.Rosen was saying that some properties will pay more, some will pay less and some will stay the same, so it's neutral. Taxes never go down, and I feel that the majority of people will end up paying the same (if they are lucky) or more. |
Bob K
Supporter
Username: Bobk
Post Number: 12110
Registered: 5-2001
| | Posted on Wednesday, July 12, 2006 - 8:18 am: |
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SOP,
A revaluation is revenue neutral from the point of view of the municipality and the school board, before, and this is an important before, any tax increases for the next year are passed and figured into the revenue needs. Some municipalities have been known to put through rather large tax increases, Maplewood being one, at the time of the revaluation under the theroy that nobody will notice.
If prior to a revaluation a town has an assessed value of $1,000,000 and a $3 tax rate and after the revaluation the assessed value is $3,000,000 the tax rate would be reduced to $1. If a house was assessed for $10,000 prior to the reval and $30,000 after the total taxes wouldn't change. However, if a house was assessed for $10,000 prior to the reval and $50,000 after the taxes would increase from $300 to $500. Conversely, a house assedded at $10,000 prior to the reval and $20,000 after the reval would see taxes decrease from $300 to $200.
Hope I got the math right. 
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Soparents
Supporter
Username: Soparents
Post Number: 1987
Registered: 5-2005
| | Posted on Wednesday, July 12, 2006 - 8:37 am: |
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You probably have!!
Well, we will just have to wait and see..
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Rastro
Citizen
Username: Rastro
Post Number: 3556
Registered: 5-2004
| | Posted on Wednesday, July 12, 2006 - 10:32 am: |
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One important point, which may have an impact on us (and I give credit to FvF for bringing up), is the change in ratables. How many ratables are no longer available for the tax rolls during this reval, that were around for the last? SHoprite? Saiyd? Beifus (at least the building was standing)?
On the other hand, the Pulte residential properties are coming on the rolls.
Should be interesting.  |
Elaine Harris
Citizen
Username: Elaineharris
Post Number: 214
Registered: 12-2004
| | Posted on Wednesday, July 12, 2006 - 10:49 pm: |
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Don't forget Sickley Bros. building complex which took $60,000 + off the tax rolls each year as of approx. 1998. FYI: that is all the land that was sold to New Jersey Transit, including the Transit parking lot and SOPAC. |
Matt Foley
Citizen
Username: Mattfoley
Post Number: 732
Registered: 6-2004
| | Posted on Wednesday, July 12, 2006 - 10:57 pm: |
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Do we have to admit the reval. firm into our houses? If so, I need help covering up the oil well and natural water spring in the basement. I will pay cash (cash hidden in numerous coffee cans under the floorboards) |
Pdg
Citizen
Username: Pdg
Post Number: 989
Registered: 5-2004
| | Posted on Thursday, July 13, 2006 - 8:48 am: |
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I think it is important to note that after the revaluation EVERYONE'S taxes will go up - specifically the Open Spaces Tax (not sure of exact name, but it was in last week's News-Record). This currently is a tax of one cent (sounds so harmless, I know) per $100 of a property's valuation. The village is contemplating doubling that tax as we speak.
Bottom line, if your house & land are currently "valued" on the tax books at $150,000, then your open spaces tax is $15 (Is my math right? $1,500 x $.01 = $15). If after revaluation, your house is now "valued" at what it could actually sell for, it may be valued at $400,000. So, your tax would be $40. And in the event the tax is doubled, it would be $80.
My problem with this tax, which on the surface sounds like a no-brainer to vote yes on, is that apparently the proceeds go into some "slush fund" and may not actually be used only for open spaces preservation. |
Soparents
Supporter
Username: Soparents
Post Number: 2015
Registered: 5-2005
| | Posted on Thursday, July 13, 2006 - 8:50 am: |
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Your concern is also one of mine too Pdg... |
Bob K
Supporter
Username: Bobk
Post Number: 12126
Registered: 5-2001
| | Posted on Thursday, July 13, 2006 - 8:59 am: |
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An interesting point on open space taxes. In Maplewood the money collected actually went to put down an artifical surface on the sports fields at DeHart Park. I think people were thinking more about, well open space, not an unatural product for sports fields. |
MHD
Citizen
Username: Mayhewdrive
Post Number: 4410
Registered: 5-2001
| | Posted on Thursday, July 13, 2006 - 9:30 am: |
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From today's News-Record:
For some property owners, their taxes will go down or stay the same, Rosen said. For others, their taxes will go up.
It’s those property owners that officials expect to hear from.
“The ones that go up in taxes always complain,” village President William R. Calabrese said. Officials predicted the Montrose section of the village would feel the brunt of a revaluation.
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Pdg
Citizen
Username: Pdg
Post Number: 993
Registered: 5-2004
| | Posted on Thursday, July 13, 2006 - 9:35 am: |
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Hmmm - I wonder what that statement will do for the houses that are for sale in Montrose... |
DRJ
Citizen
Username: Alaska
Post Number: 85
Registered: 9-2005
| | Posted on Thursday, July 13, 2006 - 9:38 am: |
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I expect the Montrose section overall to get hit pretty hard by the revaluation. |
Politicalmon
Citizen
Username: Politicalmon
Post Number: 206
Registered: 9-2005
| | Posted on Thursday, July 13, 2006 - 1:03 pm: |
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Well if this occurs you will surely see a free fall of property values in Montrose. Remember most of those large old structures are lacking the basic insulation of post 1920 construction and have huge maintenance costs. A pre 1900 house will cost you over $1000 per month to heat in the winter and this is after all the windows have been replaced and thermostat set to 65 degrees. This will cause an exodus of all homeowners who have been there for some time as they attempt to recoup their investments. Additionally, nightmares for all the newcomers who bought high and will never get back their investment in their homes given that the real estate cycle is turning south.
Bankruptcies will skyrocket and Montrose will turn into 7 Oaks - Orange - Homes will deteriorate money for upkeep will help pay for taxes, and some will question why pay for up keep if I can't recoup my investment.
Twelve years ago you couldn't give away a house in Montrose - people came and invested their life savings into salvaging historically significant homes - rebuilt an area that many thought was going down the tubes - a significant tax increase would drive these families away - Montrose will go down the tubes and as Montrose goes so will South Orange.
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Tuxedo
Citizen
Username: Tuxedo
Post Number: 70
Registered: 7-2004
| | Posted on Thursday, July 13, 2006 - 1:06 pm: |
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Start saving your pennies. |
DRJ
Citizen
Username: Alaska
Post Number: 86
Registered: 9-2005
| | Posted on Thursday, July 13, 2006 - 1:58 pm: |
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I would view your doomsday scenario for Montrose as extremely unlikely. There have been numerous homes sold in the Montrose area in the past two years for more than $1 million with tax bills comparable to $500K homes in other parts of town. It is only fair that the tax burden be redistributed.
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Stuart0628
Citizen
Username: Stuart0628
Post Number: 288
Registered: 2-2003
| | Posted on Thursday, July 13, 2006 - 2:54 pm: |
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Agreed with DRJ. Properties should be taxed more if they are worth more, whether they are in Montrose or Wyoming or Newstead or anywhere else.
If they weren't worth more, they wouldn't be selling at higher multiples of assessed value than the rest of town.
If they weren't worth more, then their revaluation could be appealed...but if the re-assessed values are accurate, those appeals will fail. |
Stuart0628
Citizen
Username: Stuart0628
Post Number: 289
Registered: 2-2003
| | Posted on Thursday, July 13, 2006 - 3:03 pm: |
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While I disagree with most of Politicalmon's post, I'll agree in this small way: If Montrose has been enjoying a tax subsidy (relative to their neighbors) over the past years, then the subsidy could be increasing the value of the houses there by a small amount...but that subsidy is not rightfully theirs to begin with. If their annual taxes are $15,000 but should be $18,000 instead, then the value of house after reval might go down a couple of percent. Ballpark guess. |
Bob K
Supporter
Username: Bobk
Post Number: 12134
Registered: 5-2001
| | Posted on Thursday, July 13, 2006 - 3:16 pm: |
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A lot depends on when the reval is done. One of the issues with the last SO reval was that it was done and implemented when there was a dip in house prices. Some appealed and won, others didn't and that is why their are some weird assessments on similar homes on the same block.
Montrose is going to be tough. I remember a poster here who thought her $12,000 in taxes on a $800k house was high.
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DRJ
Citizen
Username: Alaska
Post Number: 87
Registered: 9-2005
| | Posted on Thursday, July 13, 2006 - 3:42 pm: |
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I wish my taxes were only $12,000.
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