In the coming weeks, Guttenberg will begin its first revaluation of property values since 1995, which may cause some residents’ taxes to rise in 2011.
According to Mayor Gerald Drasheff, the town once assessed private properties for taxation at 100 percent of their “true value.” But due to changes in the market value of properties over the years, some homeowners, mostly those with older properties, are paying taxes on only about 35 percent of the current market value of their property. Other, newer properties are paying taxes on a higher valuation, up to 70 percent of their market value, said Guttenberg Tax Assessor James Terhune, who has held the post since 1971.
A revaluation of all of the town’s real estate is intended to balance out these differences and determine Guttenberg’s new town-wide value for taxation according to current market values. When a new tax rate is set to levy the money needed for municipal government operations, some residents’ taxes may rise, others may actually decrease, and some may not change.
“There are major discrepancies right now only because the market changed so drastically in the last year or two.” – James Terhune
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“There are major discrepancies right now only because the market changed so drastically in the last year or two,” said Terhune.
After requesting quotations from the 12 appraisal companies approved by the state, Terhune felt that Appraisal Systems, Inc. were the best ones for the task. Guttenberg passed a resolution at their Aug. 23 meeting awarding a $202,870 contract for work slated to be completed by January 2011.
Residents will receive brochures alerting them of the work that will begin as soon as the New Jersey Director of the Division of Taxation approves the contract, said Terhune.
The new tax rate will be based on the current market values as of Oct. 1, 2010 and will be effective in tax bills for 2011.
What should residents expect?
Guttenberg, according to its contract with Appraisal Systems, has provided the company with three tax maps, deeds, the mailing addresses of all residents in town, and other official records.
Appraisal Systems President Rick DelGuercio said that in the coming weeks they would send flyers and brochures out to residents. Residents may also visit www.asinj.com for more information, which will have an individual Guttenberg page.
Residents will also receive notification about upcoming field inspections. If inspectors are unable to gain entry, they will leave a card requesting an appointment be made by phone or mail so that they can appraise the value of all of the town’s properties individually. Inspectors will be available during the day, but will have early evening and Saturday appointments.
DelGuercio said that two to three inspectors will examine residential properties, while one field inspector will handle the town’s commercial buildings.
At their office there will be data input personnel, as well as several appraisers who will monitor the current market as the revaluation occurs.
“It’s all about the market, what homes are selling for today,” said DelGuercio. “It’s important, I think, that everybody is aware that a home that sells today is not what that same home could sell for three or four years ago. We really want to make sure the data we collect is calibrated to the current market conditions.”
Inspectors will try at least three times to inspect every single property, but if they cannot gain entry, they will appraise the home by what it looks like from the outside and according to state laws they must then “estimate to the highest, fullest potential of that property,” said DelGuercio.
The Guttenberg tax assessor will receive photographs from every single parcel of land and scaled sketches of the interiors. The appraiser’s report will also include information such as age, construction, depreciation, additions, deductions, appraised value, rental data, and recent sales prices.
Home updates
DelGuercio said the “biggest items” inspectors will be looking for are any updates to properties, along with the overall condition of the property. Updates to kitchens, bathrooms, and basements will play a role in building’s value.
To a lesser degree, the type of heating, fireplaces, air-conditioning, and the actual square footage of the property will also count, he said.
He said that square footage will be measured from the outside of the property on a “gross basis,” according to state mandates.
Basically, items that a prospective homeowner would be looking for will be noted as well, he said.
Terhune said that some homes that were once one-family residences have been converted to two-family properties or condos, which will change their tax appraisal.
Residents can file appeals
“We will be completely transparent in this process,” said DelGuercio. “We will be able to meet with residents, share information that we’ve collected relative to the market, relative to the data, and there will be a period of time sometime later in the year prior to submission of the numbers to the Hudson County Board of Taxation were people can discuss their assessments.”
In addition to holding meetings for the town, they will also offer individual informal reviews before Dec. 15. Taxpayers will also receive in writing the result of their appraisal within four weeks of the end of their reviews.
“Every homeowner will have the right to file a tax appeal,” said Terhune.
Tricia Tirella may be reached at TriciaT@hudsonreporter.com.
(Poll closes Thursday, Sept. 9.)