Little Silver: What's a Revaluation?
Here's a handy primer explaining the process that tries to more fairly distribute the tax burden in a municipality.
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Last year, Little Silver was ordered by the Monmouth County Board of Taxation to establish current market value as a basis for their tax assessments.
Under a borough-wide revaluation, homes and businesses are inspected for their comparable assessed worth in an effort to more fairly distribute the tax burden. Local government and school tax levies are comprised of tax points, which are literally every cent a resident pays in property taxes per $100 in assessed value.
While some residents may see their assessments and consequently their tax bills increase under a borough-wide revaluation, the process is intended to correct inequities in the tax base that may develop over time.
Check out the attached "What Is Revaluation?" guide that details the appraisal process as well as how to file an appeal.
Michael
2:35 pm on Wednesday, January 30, 2013
"Correct inequalities" or create them?
While the basic principal works on Federal taxes, those who make more pay more, it is flawed for use on property taxes from my perspective. Ability to pay was determined when you first bought the house. You could have bought your house 15 years ago and the mortgage and taxes were affordable based on your salary.
You may have been fortunate and bought in an area that appreciated well over time - lucky you. BUT that does not mean you can afford significantly higher taxes just because your house "appreciated" - you salary did not necessarily grow at the same rate and ability to pay these taxes is about your salary not about how much your house appreciated.
Until that house is sold - that appreciated value is mythical figure - an unrealized gain (or loss) that may or may not be there when you actually sell.
By allocating town taxes based on assessed value - we may be forcing people to move since they can no longer afford to live in their house due to taxes.
Other counties are not doing this - when I look at the assessed to actual values in other counties (like Union) that are really low - like 25%.