Mahwah December 8, 2010 THE VILLADOM TIMES IV • Page 3 Revaluation shows no shift in tax burden by Frank J. McMahon Mahwah Township Administrator Brian Campion has advised the governing body that the recently completed revaluation of all real property within the township has produced no shift in the property tax burden between residential and commercial properties. An analysis of the revaluation indicates there are 9,242 residential properties in the township, versus 9,232 prior to this revaluation, and the assessed values of those properties have increased from $3.3 billion to $4.3 billion. There are a total of 248 commercial properties in the township now, versus 246 prior to this revaluation, and the value of those commercial properties has increased from $741 million to $1.2 billion. Campion provided a status report to the council during which he advised that most residential tax bills will not increase because of the revaluation, and some may decrease. “I think this was a very good report,” Campion said. “Most residents feel a revaluation will make taxes go up, but this report says it will not.” Campion emphasized, however, that each property is considered separately, and 37 percent of the township’s residential properties may see an increase in property taxes due to either being undervalued, or because there has been an addition to the property that had not been previously assessed, or because some neighborhoods appreciated in value more than others. That means that the property taxes on 64 percent of the residential properties in the township will decrease, or go up less than $50, Campion said. All township residential property owners should have received a letter from Appraisals Systems, Inc., the company that conducted the revaluation. That letter explained the assessed, or fair market value, of each property as of Oct. 1. The letter emphasizes that the 2010 property tax rate should not be applied to the new assessed value because the tax rate is expected to decrease as a result of the revaluation. However, the actual 2011 tax rate will not be known until after the Bergen County, school, and municipal budgets are approved and a new tax rate is established in the summer of 2011. Campion provided an analysis of the impact of the revaluation that indicates the township’s current tax rate of $2.124 is expected to decrease to $1.54 before any tax increase that may be required for the township’s 2011 budget. Campion cautioned that is a fluid estimate because it changes as new properties are added to the tax rolls and new assessments are added. The analysis points out that the average residential property tax is expected to decrease by about $192 prior to any budget increase for 2011. Residential property owners can, however, estimate their comparable property tax liability for 2011 under the township’s current budget. According to the analysis, the 2011 assessed value of the average residential property in the township is $469,400. Based on the anticipated tax rate of $1.54 per $100 of assessed value, the average assessment would result in a tax of $7,229 (1.54 x 4,694). Residents were advised that they could make an appointment to meet with an Appraisal Systems representative to discuss their new assessed value or present any relevant information by calling (201) 493-8530 during weekday business hours within 10 days of receiving the letter from Appraisal Systems. The last revaluation in the township was conducted in 2000 for the 2001 tax year. Prior to that, revaluations were conducted in 1991 and 1987. This revaluation of the township had been delayed several times due to the decreasing values of residential and commercial properties during the past few years. It was first ordered the Bergen County Board of Taxation in 2006 for the 2008 tax year, but that order was appealed by the township, which was successful in delaying the revaluation from the 2008 to the 2009 tax year. In May 2007, the county tax board approved Mahwah’s second request to delay the revaluation from the 2009 tax year to the 2010 tax year. The tax board then approved the township’s request for a third one-year extension to conduct the revaluation during 2009 and 2010 for the 2011 tax year. The extensions were granted in order to ensure a more thorough examination of all current market factors that affect value in light of the recent volatility in the housing market. Several methods were used to establish the value of a property, including its zone and use, comparable home sales in a neighborhood, current value trends, and the measurement and inspection of each property inside and out. 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