Reassessment or Reevaluation in your Town

Posted at 3:16 PM, Apr. 4, 2008

Donn Lamon the Broker Owner of Lamon Associates sent a message out with the Lamon Listing booklet a few months back talking about reassessment. Given the furor that has occurred in the last few months over reassessment, it is worth repeating here:

Dear Friends and Neighbors,
     Do not be afraid of reassessment or reevaluation in your town. The purpose of this process is two fold. One - to bring the values of real property up to 100% of current market value for equalization of all taxing authorities drawing revenues from property taxes. And two - to redistribute the tax burden according to current values, not the values that were placed on your property from the previous assessment (which could be 8 to 15 years ago).
     Different trends cause values to change at different rates; i.e. condominiums may appreciate at different increments than single family residences. Commercial or industrial properties may do the same. New developments may see a decrease in their taxes.
     The municipal government reassessment cannot increase the total taxes it is now collecting .... only redistribute the tax burden fairly according to the ad valorem (at value) tax system. This system is the most equitable system in the country based on the premise of your ability to pay.
     Some states have systems that are not fair or equal to the value. The homestead states freeze increases if you stay in your property, discouraging changing or moving due to losing your tax advantage. The exact properties are assessed differently according to when you bought them. The same home or condo will have taxes at all different levels.
     Typically in New Jersey in reevaluation years the tax assessment will double while the tax rate will drop in half. This will equal the identical total taxes raised by the municipality. Unfortunately, New Jersey has the highest property taxes in the country.

          Sincerely,   Donn C. Lamon

Donn Lamon is Broker Owner of Lamon Associates Real Estate and past Mayor of Cinnaminson, NJ. Donn has been Tax Assessor of various townships in Burlington County, New Jersey.