The average homeowner can expect to see some tax relief this year after a reassessment process that transfered some of the tax burden on residential properties to commercial properties.
Rick Del Guercio, the principal of Appraisal Systems, Inc. presented the final reassessment results to the governing body and residents Tuesday night.
Del Guercio said changes in the market over the past several years led to the need for the reassessment after numerous tax appeals. The market was at a high when properties were re-evaluated in 2005 and after the 2008 market crash, values continued to drop, he explained.
As a result of the latest reassessment, Del Guercio said overall property values decreased by 17 percent. Residential properties decreased by 25 percent, while commercial properties decreased by about less than 5 percent, he said.
“Unfortunately a lot of people are losing equity in their homes but the silver lining is that won’t have to pay as much in tax dollars,” Del Guercio said.
Due to the larger drop in residential property value over commercial there had to be an adjustment in how the tax burden is distributed, he explained. This resulted in a 3 percent shift over to the commercial properties, he said, which should bring some relief to residential property owners, he said.
He explained that previously, residential properties were responsible for 78 percent of the tax burden. Now it is down to 75 percent. Commercial has gone from 21 percent up to 24 percent.
At this time property owners will not be able to determine exactly what they will pay in taxes this year, as the tax levy for the municipality and school district will not be determined until the spring. The predicted tax rate, without 2012 school or municipal budget information, is now at 2.71, which Del Guercio said is in line with other towns in Bergen County that have been reassessed.
In the meantime, Del Guercio said property owners can use a special calculator accessible on the firm’s website to get a ball park figure of what they may pay if last year’s school and municipal tax levy were to remain the same this year.
Mike Kronyak, chief financial officer and borough administrator, said that by next week he should be able to determine the new tax points along with the new average home value.
Residential property owners received letters informing them of their new assessed value in early January. They were given opportunities to meet with hearing officers from Appraisal Systems for . Property owners have until May 1 to appeal the new property value.