April 7, 2011
Re: Urging for Sharing the Burden of Property Assessment Appeal Refunds Sample Resolution
Recently Assemblyman Carroll has introduced A-3412, which requires fire districts, school districts, and county governments to share in burden of property assessment appeal refunds.
In 2010 we saw a spike in tax appeals that was attributed to the economic down-turn which lowered property values and placed increased stress on the income of homeowners all around our Garden State. This trend is continuing.
As you are aware when County Tax Board appeals are granted the municipality must reimburse the property taxpayer 100% of the appealed tax levy, which includes the municipal, school, county and any special districts tax. The municipal tax collector makes the adjustment from the appeal as a credit on the 4th quarter tax bill resulting in the municipality’s fund balance for the preceding year being diminished, if not completely depleted.
Successful tax appeals have a three-fold negative impact on municipal budgets. First, the municipality, as the collector of taxes for the School district, county and special districts, must fund the full cost of the legal defense of the assessment. Second, since State law guarantees to the county and the school district 100% of their levies, the municipality bears the full cost of any re-imbursements resulting from the appeal (as well as the full burden for any uncollected taxes). Third, the end result will be a further decline in the property tax base used to support Municipalities, County governments and School systems
In light of the revenue limitations that have been placed on all levels of local government by the Legislature (2% cap), such declining values will compound and add additional stress to local public officials, as they grapple with the issues confronting the tax paying public.
We urge you to adopt the sample resolution (word or pdf) calling on the State Legislature and Governor to require fire districts, school districts, and county governments share in the burden of property assessment appeal refunds.
If you have any questions or need additional information please do not hesitate to contact Lori Buckelew at firstname.lastname@example.org or 609-695-3481 x112.
Very truly yours,
William G. Dressel, Jr.