At the last of three informal meetings held by the company that will determine the taxable value of Guttenberg’s private properties, 60 residents, primarily those of the Galaxy Towers, questioned the need for the town’s revaluation.
Appraisal Systems Inc., a Glen Rock company hired by Guttenberg for $202,870 to conduct the revaluation, hosted the meeting on Nov. 10 at the Galaxy Mall. C.E.O. Ernest Del Guercio Sr., President Rick Del Guercio Jr., and Vice President and Guttenberg project leader Robert Brescia, hosted the meeting.
Guttenberg’s properties have not been revalued since 1995, when Mayor Gerald Drasheff said the town last assessed all properties for taxation at 100 percent of their “true value.” However, since the market value of properties has changed and many have been bought and sold over the years, the average assessed valuation residents are paying taxes on is about 35 percent. Some properties are assessed as high as 70 percent, others as low as 20 percent.
“Revaluation is not a means where a municipality increases taxes.” – Ernest Del Guercio Sr.
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The revaluation is intended to balance out these differences and determine Guttenberg’s new town-wide value according to the current market. When a new tax rate is set to raise revenue for the town’s budget, some resident’s taxes may rise, others will decrease, while some may remain the same.
One resident, Robert Taylor, did not understand the need to reassess the values of Galaxy condos, since he said the “market” already had an average of their property values.
Rich Del Guercio said that the market was just an average, and that because some time had passed since the last reevaluation, the market was not “a good indicator for all homes.”
What to expect
Brescia said that there were several steps to the revaluation process, which has already begun.
The first step was to inspect all of the properties in town. He said that they separated the Galaxy Towers from the rest of Guttenberg, and that so far, they were about 50 percent done with inspecting properties.
He said that inspectors stop by each home sometime between 9 a.m. and 5 p.m., and if they are unable to gain entry into the home, they complete an inspection and leave a yellow card with an appointment in the evening, expecting that the person might be available at night. If that time is inconvenient, they can call and reschedule.
While outside improvements and measurements will be done in homes, Brescia said that master deeds would be used to quantify the square footage of condos.
He said that interior inspections would take between five and 15 minutes and that renovated bathrooms and kitchens, the overall condition, as well as any plusses, like views of Manhattan, or negative issues, like noise from traffic, would be taken into account.
If not allowed entry, they will be forced under the law to estimate the value at the highest value by assumie that properties have been renovated. For homes, they will include finished basements and attics exist. A blue card, with this estimated value, will then be dropped off at the home. The resident can still call, however, and arrange for one of their appraisers to stop by.
Appraisal Systems will then analyze that data by comparing it to recent property sales and other trends in the market, such as depreciating values and other real estate issues. They then will send the new value assigned to properties to their owners and meet with them, allowing them to discuss the data and contest it. He said that all of the information, including recent sales that they did and did not use to configure the current market, would be made available on the internet at www.asinj.com.
Afterward, they will send the values to the town and defend them in tax court if and when appeals are filed.
What’s being considered?
Sakeila, who preferred to not use her last name, asked if the financial situation of the Galaxy, which she said is “broke” and has suffered from poor management, would be taken into consideration. She said that many of the condo owners were having trouble selling their property because maintenance fees were very expensive.
Del Guercio Sr. said that the cost of ownership would always be taken into account.
Another resident asked how a current market value could be established, since property sales have been stagnant.
Rick Del Guercio said that if that was the case, they would turn to rental rates, postings on Craigslist.com, how properties on the market have depreciated or how many times they have been placed back up for sale, as well as the trend over the last three years.
Residents feared that their property values from three years ago, which were more valuable then, would be used.
Others worried about their recently-won tax appeals. Drasheff said that many of the 500 tax appeals the town received this year were from the Galaxy and that many of them won in the Hudson County Tax Board, accounting for around $250,000 of refunds. Drasheff said that Galaxy residents make up about one-third of the town’s normal $13 million tax levy.
He said that this told him many residents in the Galaxy probably were paying too much and the town had to find a solution or otherwise they would be faced with additional tax appeals.
Residents feared that the lowered rate, which is locked for three years, would now be lost since a revaluation supersedes it. Drasheff said that the $250,000 had to be distributed across the town, while Del Guercio Sr. said that if a judge found that their property should be valued at a certain rate, it was likely that they should come to a similar conclusion.
Another resident asked what would happen if a Galaxy owner was out of town for a few weeks and missed the initial three notices. Del Guercio Sr. said that they could call before they leave town and schedule an appointment now.
Town’s reaction
Drasheff said that residents at the other two town meetings held earlier this month at Town Hall and Anna L. Klein School brought up different questions from residents, such as what would happen to a two-family house that has turned its basement illegally into a third apartment.
Appraisal Systems will note the room, but they will not enforce anything. It will be up to the town later to make that decision, he said.
They also asked about what would happen to a two-family house with a commercial business on the first floor. Drasheff said that a commercial business would be appraised on the income it brings in, while the residential floors would be judged on improvements.
Another worry was for owners of Guttenberg businesses and buildings who do not live in town. To solve this problem, Drasheff has asked the yellow cards to be sent to the owner’s home.
The town hopes to have the revaluation completed by January 2011.
Tricia Tirella may be reached at TriciaT@hudsonreporter.com.