Nutley Residents May Get ‘Sticker Shock’ Over Property Revaluations

NUTLEY, NJ — Are you a Nutley homeowner who did a double take when you got your recent property revaluation letter? There may be more to the situation than meets the eye, a town commissioner says.

As part of Nutley’s latest, state-mandated tax revaluation, the town contracted with Appraisal Systems Inc. to determine the values of all Nutley properties. Many residents received correspondence containing preliminary figures from the town-wide effort in late December, officials noted.

“At first glance, there is certainly going to be sticker shock over the assessments,” Nutley Commissioner Thomas Evans said.

“While this is understandable, it’s not the reality,” added Evans, who serves as the town’s director of the Department of Revenue and Finance.

According to Evans:

“A common mistake among residents is applying the 2022 tax rate to their new assessment. To estimate their new property tax, residents can use the tentative tax rate of 2.506 percent, which is much lower than the 2022 tax rate of 3.864 percent. Simply divide your new assessment by 100, then multiply it times 2.506. That equation will give you your preliminary new property tax before any budgetary adjustments for 2023.”

Evans said that the above numbers are “preliminary” and can change once the new township budgetary process is completed. He also offered some tips for concerned homeowners:

• “Make sure you get a copy of your property record card and confirm it is correct. If you don’t have it, you can request it by emailing nutley@asinj.com.”
• “If you have questions about your new value, meetings can be arranged by calling (201) 493-8530 Monday to Friday between the hours of 9:30 a.m. and 4 p.m. within 10 days of receipt of your letter.”
• “Additionally, you can contact ASI at www.asinj.com/scheduling.htm. You will need to use the login information included with your letter.”
• “If you are part of the NJ State Freeze Program, be sure to file on time to protect your base year. An increase in tax from your new assessment will be refunded by the State as long as you file on time.”

“We are here to help residents understand the process,” Evans said. He encouraged residents with questions to contact Edmund Brown, the township’s tax assessor, at ebrown@nutleynj.org.

• See related article: Nutley 2022 Town Budget Has Tax Increase For Homeowners
• See related article: NJ's Largest Tax Bills: Belleville, Nutley Rank High On List

REVALUATIONS AND PROPERTY TAXES

What is a “revaluation,” and how does it affect a local homeowner’s property taxes?

According to the New Jersey Treasury Department, a property revaluation is a program undertaken by a municipality to appraise all real property within the taxing district according to its "full and fair value."

"A revaluation program seeks to spread the tax burden equitably within a municipality," the treasury department states. "Real property must be assessed at the same standard of value to ensure that every property owner is paying his or her fair share of the property tax. For example, two properties having essentially the same market value should be paying essentially the same amount in property taxes."

Although almost all properties' values rise during a revaluation, it doesn't necessarily mean that all property taxes will increase, state officials say.

"You might now be thinking, 'How can my assessment increase and my taxes not go up?'" state officials explain. "Remember, assessments are merely a base used to apportion the tax burden. The tax burden is the amount that your municipality must raise for the operation of county and local government and support of the school system."

During a revaluation, assessors visit individual homes and conduct both inside and outside inspections. Property owners who disagree with the eventual assessed value of their homes can arrange an informal hearing or file an appeal with the County Board of Taxation.

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