Tax Appeal In Effect For Maplewood New Jersey Homes

DOES YOUR MAPLEWOOD HOME QUALIFY FOR LOWER TAXES?

As you may have heard, Maplewood Township has just begun the town-wide property tax assessment. This will be completed by the end of the year and will take effect in 2011. Similar to the South Orange home assessment a few years ago, with homes selling for roughly 25% below ’05 prices, assessed values have come down significantly.  While its not certain whether the revaluation will cause your taxes to be reduced signifcantly, it may be worth filing an appeal this year.  When determining taxes, the town allows for 15% above and below the assessed value, which they refer to as “corridors”. So for your taxes to be reduced, you need to fall below the low range of the corridor.

To find out if your home will likely win an appeal, you’ll need to know what the minimum or low range market value is for your home. If your home sold for less than the low range market value, it is definitely worth filing an appeal. You can do that by following this basic formula:

Take the current assessed value of your home and divide that figure by .6011 [this number represents the tax ratio (.5227) multiplied by 1.15].

As an example: A Maplewood Home closed in ’09 for $605,000. The current assessed value of that home was $577,800. The taxes were $26,925. $577,800 divided by .6011 = 961,238. This number represents the lowest value of a home that would justify the current taxes of $26,000. Since the house sold for 605,000, the range is far below the low range value of $961,238. The appeal on this home was successful and these taxes have come down significantly.

If after applying this formula you think you qualify for an appeal, you will need to submit your application before April 1st. To download an application, go to: www.njactb.org. With your application, you will need to include five “comparables” of recent Maplewood Home Sales within the price range of your home. 
Some good news – if you win the appeal this year, your new taxes will be retroactive from January 1st! I’ve seen many homeowners have their taxes lowered already this past year, so it’s definitely worth the effort!

If you need help determining the current assessed value and/or obtaining comparables, contact me. I’m always here to help!

 

 

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