Montclair's Tax Base Falls Nearly 18 Percent In Reassessment
Councilors joked that the reassessment is solving the town's affordable housing problem
In another township council meeting dominated by talk of affordable housing and property prices, Steven Rubenstein, a partner at the Realty Appraisal Co., told council members that the recent town-wide reassessment reduced the township's taxable rate base from $7 billion to $5.7 billion.
Rubenstein's presentation at the Tuesday night meeting came months after the company was hired to conduct the reassessment in an effort to stop a flood of tax appeals. Indeed, the township had to shell out more than $6 million to cover the costs of tax refunds in 2010 and 2011.
Rubenstein described the recent town-wide reassessment as "a downward reassessment."
When the township conducted a reevaluation in 2006, the real estate market was at its peak. Countless residents filed tax appeals—successfully—when property values began to fall dramatically. (About 1,100 tax appeals were filed last year.)
Realty Appraisal was hired in July 2011 to perform a reassessment designed to level the playing field when it comes to property values.
Rubenstein, who lives in Upper Montclair, said his company met with about 700 property owners in January—representing about 7 percent of property—to discuss the results of the reassessments.
When all was said and done, the township's taxable value dropped by another $25 million to $5.7 billion, he said.
Although the total taxable value of the town fell by 17.8 percent, the average residential property value went down by nearly 19 percent.
So what does this mean for property owners? Those who saw their assessments fall by about 17.8 percent shouldn't have to pay much more or less in taxes than they usually do. Those whose assessments fell by more than 17.8 percent should see their taxes fall. However, those whose assessments fell by less than that average could experience an increase in taxes.
At one point during Tuesday night's meeting, Councilor Cary Africk joked that the town was solving its own affordable housing problem, noting that the number of homes assessed at $300,000 or less had climbed from 938 to 2,377 as a result of the reassessment.
Rubeinstein pointed out that the new assessments had been sent to the Essex County Tax Board and that property owners have until May 1 to file an appeal of their reassessment with the county tax board.
For more information on the reassessment and the new values go to the township's website at http://www.montclairnjusa.org/.
Randel McMurphy
9:31 am on Wednesday, February 22, 2012
'Affordable' is a relative term. While the price of houses may have fallen, and may be considered more 'affordable', the taxes are absolutely not affordable. A mortgage essentially locks in the monthly payment on the reduced price house, while the already sky high taxes double every few years-that's a huge hit to the wallet. In taking that into consideration, it is no more affordable today than it was during the peak of the real estate market.
Cary Africk
11:58 am on Wednesday, February 22, 2012
My comments were "tongue in cheek," as they say, and Randel is absolutely correct!
In fact, although this reassessment has pushed down the valuation of homes in the upper range, they are still experiencing very high taxes.
Take, for example, one $1MM home that saw no reduction in assessment. That home probably had taxes over $25K or so before the reassessment and it will now have taxes of $31K.
From a "marketing point of view," having a $1MM home with $25K in taxes was quite a sales job. Having that home with $31K in taxes will make it even more difficult to sell and will thus put pressure on the sales price!
This is not good.
Montclair Public
9:18 am on Thursday, February 23, 2012
Mr. Africk,
I'm wondering if you could shed some light on how Montclair compares to other "prestige" suburban communities, tax-wise, in the metropolitan area. I know Connecticut has lower taxes but when looking at properties in LI and Westchester and some Jersey towns for sale or those that have sold in the Sunday Times real estate section, there doesn't seem to be much difference. Not to suggest that the taxes aren't too high in all these places but we often get the sense from people in Montclair that we are uniquely oppressed, and then the blame game begins along with the standard vilification of the schools, town government, etc. Your thoughts?
Right of Center
9:30 am on Thursday, February 23, 2012
"From a "marketing point of view," having a $1MM home with $25K in taxes was quite a sales job. Having that home with $31K in taxes will make it even more difficult to sell and will thus put pressure on the sales price!"
I think $31K is an outrage. If someone with a million dollar home paid the same relative tax I pay on my more moderate home, they'd pay $34K!