Community Tax Revaluation Presentation - Trenton Tax Revaluation Presentation...Community Tax...
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Transcript of Community Tax Revaluation Presentation - Trenton Tax Revaluation Presentation...Community Tax...
How are property taxes calculated?
Property taxes are the main source of revenue for Trenton,
like all New Jersey cities
The property tax levy is the amount of money a city needs
to raise in property taxes to support its budget, paying for police, fire, sanitation, parks,
and other public services
The property tax rate is the percentage , which, when
applied to the total assessed value of real estate in the city equals the property tax levy
The property tax bill for each property owner is calculated by multiplying the tax rate by the assessed value of that property
RATE x ASSESSED VALUE = PROPERTY TAX LEVY
What is a Property Revaluation?
A property revaluation is a comprehensive way to make sure
the assessed value and the market value of all property is as
close as possible
Revaluations are normal and common; about 30 happened in
New Jersey last year
In New Jersey, a property’s assessed value (the number used to calculate the property tax bill)
does not usually equal the market value (what a property may sell
for)
In many New Jersey municipalities, assessed values are significantly higher or lower than their market value, causing
the tax rate to increase in order to raise enough revenue for the tax
levy.
Since the tax rate is calculated from the value of all property in the city, newer construction and
other recently assessed properties will be hit with much
higher taxes since their values are closer to market
The Property Tax Revaluation in Trenton
• Assessed values in Trenton were often not close to market values, as the last revaluation was in 1992
• In 2010, the Mercer County Board of Taxation ordered the Trenton municipal government to conduct a citywide revaluation of more than 30,000 residential and commercial properties in the city.
• The City selected New Jersey-based Appraisal Systems, which has done this work in numerous other municipalities in the state
Description
CLASS 1
Vacant
Property
CLASS 2
Residential
CLASS 4A
Commercial
CLASS 4B
Industrial
CLASS 4C
Multi-Family
Total
Assessed
Value
2017 $21,072,900 $1,338,117,730 $867,099,809 $62,428,000 $90,048,100 $2,395,945,829
2016 $18,227,780 $1,351,675,310 $546,753,220 $35,005,000 $52,902,600 $2,019,401,562
% Change 16% -1% 59% 78% 70% 19%
$ Change $2,845,120 ($13,557,580) $320,346,589 $27,423,000 $37,145,500 $376,544,267
DescriptionMunicipal
Tax Rate
Calculated
Municipal
Levy
Total Tax
Rate
Calculated
Total Tax
Levy
2017 3.379 $80,959,009.56 4.955 $118,719,115.83
2016 3.936 $79,483,645.48 5.753 $116,176,171.86
% Change -14.15% 1.86% -13.87% 2.19%
$ Change $1,475,364 $2,542,943.97
Summary of Ratables, Tax Rates, and Levies
*Data from Mercer County Board of Taxation
2017: 43% Non-residential
2016:32% Non-residential
Timeline of Property RevaluationDate Event
March 2015 Public presentation on the revaluationMay 2015 Initial introductory letter mailed
June 2015Income and expense forms (Chapter 91) mailed (1st year)
commercial property onlyAugust 2015 Public presentation on the revaluation
September 2015Income and expense forms (C. 91) mailed (1st year)
commercial property only, 2nd mailingSeptember 2015 Public presentation on the revaluation
May 2016 Estimate and refusal letter mailed - residential property only
September 2016Income and expense forms (Chapter 91) mailed (2nd year)
commercial property onlyJanuary 2017 Value notification letters mailed
April 2017 Notification results of informal reviews with taxpayers mailedApril 2017 Official assessment notices (Chapter 75) mailed - mailed by City of TrentonMay 2017 Deadline to file tax appeals
Results of Property Tax Revaluation
1
70% of taxpayers saw their tax bills decrease
2
Trenton taxpayers payers, in total, saw
their tax bills decrease by $2.2 million
3
80% of the increase came from non-
residential property
4
Trenton homeowners saw their tax bills
decrease, in aggregate, by $5 million.
The Tax Appeal Process
The tax assessment calendar
1
The appeal calendar
• Mercer County Board of Taxation
• Tax Court of New Jersey
2
The valuation process
3
Settlement negotiations and adjustments of
assessments
4
The 2018 tax list
5