By John Burton
RED BANK – When the results are finally known later this year about the full property revaluation, some owners will see relief, predicted Mayor Pasquale Menna.
“The numbers are off and this should level the playing field,” said Menna about the ongoing revaluation.
Some properties will have lower assessments that will translate into lower tax bills for owners and hopefully a reduction in the spate of tax appeals in recent years, Menna said.
The revaluation of all real property within the borough’s 1.7 square-mile was ordered by the Monmouth County Board of Taxation and approved by state tax officials.
Menna is embracing the process because, he explained, “The borough was getting clobbered on tax appeals.”
The borough in 2008 underwent a reassessment, which is not as comprehensive as a revaluation. That was when property values were at a particularly high point, prior to the financial meltdown later that year. After the economic downturn there has been a rush of tax appeals, “mostly by commercial entities that had been purchased at the higher end” of the market, charging that their properties were in actuality now worth less than the assessment and their tax bills should reflect that, Menna said.
“And they sued us,” through the tax appeal process, he said, “and we have been writing out a lot of refund checks in excess of what it would cost us for a reval.”
The county Board of Taxation traditionally orders a revaluation when it becomes apparent that the assessed value of commercial and residential properties is appreciably out of sync with the selling prices. What prompted the revaluation was, “The state became concerned about the large number of appeals that were successful and how impacting,” it was on the distribution of the tax burden through the community, Menna said.
And when large properties were negotiating and winning returns on their tax payments that, “means it has to be made up by everybody else,” Menna contended.
The borough’s chief financial officer was not immediately available and costs related to tax appeals and cost of the revaluation could not be determined by press time.
The reassessment six years ago, while likely responsible for generating additional tax revenue for the borough, was ill advised, said Cindy Burnham, a Republican member of the Democratically controlled borough council. “Everybody stood up and screamed because it was so unjust,” and appealed the assessments, said Burnham, who was not on council at the time.
“Now I think it’ll put everything more in line,” with the revaluation, she said.
Once the numbers are known and more accurately reflect the fair market value, “You know something? We’re going to fight,” tax appeals that are clearly undeserved and file counter-claims against property owners, Menna threatened.
The borough has hired Realty Appraisal Company, West New York, which has conducted them in the borough and elsewhere in the area previously.
Officials are asking owners to allow access to their properties for inspections of the interior and exterior to properly evaluate them.
Owners of income-producing properties will be required to provide additional information at a later date.
Representatives of Realty Appraisal will be provided with borough-issued identification as well a photo IDs for the public’s safety.
For additional information, officials said the public can contact the borough tax assessor’s office, 732-530-2767.
Contact John Burton at JBurton@tworivertimes.com or at 732-219-5788.
