As a professional realtor—and homeowner in Teaneck—my experience with reducing assessments has been consistently successful. Certainly when one can prove a home’s assessment is higher than its value, the homeowner will be paying less in yearly property taxes since the amount of taxes is calculated by multiplying the assessed value by the town’s respective rate.Please note that the tax rate is set by the town on a yearly basis to maintain a “0” balanced budget. It is the town’s responsibility to adjust the rate to ensure that their budget is balanced so the town does not operate at a deficit.
After last year’s Teaneck-wide reassessment, many situations occurred. Some residents had an increase in taxes while others were pleasantly surprised since their tax amount was reduced or stabilized. In my case, both the assessment was increased and the rate set by the town for all was increased so I faced a double whammy. It was time to start appealing.
Deadlines for tax appeals vary from town to town and my application for the tax appeal was complete by the April 1 deadline. After many months, I was finally granted an appeal court date. Since I am familiar with market values as a realtor, I was able to pull sold comparable homes within a reasonable period of time to substantiate my reduction appeal. My motto is, “If you don’t ask, you won’t get, and you can bet your bottom dollar that unless you appeal, your assessment will remain fixed until the next town re-assessment, whenever that will be, and/or unless you have applied for permits to improve your home.”
Of course, the effect of overall appeals and reductions by the residents, which is their legal right to ensure that their assessment is not exaggerated to reflect the market, is that the rate will need to be adjusted on a yearly basis to maintain the aforementioned balance. However, your #1 issue is your own home and its tax obligation.
I decided to again contest the reduced assessment that was granted on the Bergen County level by pursuing a reduction on the state level, which is the homeowner’s right as part of the process. I diligently filled out another application to appeal to the state of New Jersey, and was again successful. This means that my taxes were lowered twice within a given tax period. All done without the services of an attorney, but be aware that an attorney can also be hired to orchestrate the reduction if a consumer chooses to be legally represented.
Returning to the specifics of assessments, the rate amount fluctuates from town to town. At this time, Teaneck has the lowest rate as compared with the contiguous towns of New Milford and Bergenfield, which was not always the case. The rate for New Milford is 3.255 and Bergenfield
is 3.122, but the town of Teaneck is set at 3.047 on the current tax data information in the county records. Great news for Teaneck residents.
The town equalization rate, which fluctuates for assessment purposes, is also something to be considered with regard to assessments. New Milford’s equalization rate is set at at 86.16 percent, Bergenfield’s is 97.49 percent and Teaneck’s is 95 percent. This set amount is the determining factor with the final tax amount obligation based on the assessment.
Successful tax-appeal reductions allow for retroactive credit for the period of the appeal and an adjustment to a resident’s tax bills.
When purchasing a newly built home, the taxes may not indicate the final taxes since the assessment period may only reflect the stages of the house development without its full value reported as of yet. Taxes can even be based on the land itself depending on the time the assessment was recorded, so be aware of what your final obligations will be.
Whether there is fluctuation in assessment, taxes or interest rates affording more buying power while the rates are lower, purchasing a home provides the quality of life and nest egg we all aspire to. Homeownership is the paradigm of pride; your home is a place where you will be spending the majority of personal time.
By Ruby Kaplan, V & N Realty
