Township Sees Higher Than Expected Impact on Revenues From Tax Appeals

Galloway Township will pay out over $500,000 in revenue due to more than 1,100 tax appeals filed this year, according to Township Tax Assessor David Jackson.

Jackson said on Friday, Oct. 7 that the $516,316.90 the township will pay out in tax appeals is higher than the loss of revenue in each of the last two years, although the exact amount lost in 2009 and 2010 was unavailable. 

He said the total does not include those seeking appeals for timeshares. Those appeals may not be settled until next year, at the earliest. He also said the revenue paid out for tax appeals has been steadily increasing since the township’s revaluation in 2009.

“Those appeals take years to settle,” Jackson said. “As you might know from the casinos in Atlantic City, some can take five or six years. When they are eventually settled, which we hope will be 2012, it’s reflected in past credits.”

Like many municipalities, Galloway doesn’t refund the difference in appeal in one lump sum. Instead, those who win appeals will see the differences reflected in their future bills.

Jackson said that the final appeals were settled last week, and it’s “too early to tell” how the loss due to these appeals will affect next year’s budget.

The township sets aside funds to cover the cost of tax appeals and unpaid taxes as part of its budget. According to Township Manager Steve Bonanni, the township set aside $675,000 in that fund, but it won’t be clear if it can cover the cost of the tax appeals until the total in unpaid taxes can be calculated at the end of the year.

In the meantime, incumbent councilmen who are running for re-election this November had their own ideas on how to alleviate the impact on taxpayers, should it come to that.

“We need to attract ratables to take the burden off the residents,” Democratic Councilman Jim Gorman said. “Tax appeals are an evil we have to deal with. I understand why people are doing it, but it’s a burden to those who are not appealing.”

Gorman also stated state revenue is better than anticipated, and was hoping the township might see more state aid. He also isn’t in favor of another revaluation.

“Revals are very expensive and an unnecessary burden on the taxpayer,” Gorman said.

Gorman’s Democratic running mates in the Nov. 8 elections are challengers Jim McElwee and Kevin Krumaker.

Republican Councilman Tony Coppola said the total of the appeals was a little more than the township anticipated when setting up the budget.

“(Tax appeals are) a challenge that faces all municipalities,” Republican Councilman Tony Coppola said. “People come and appeal and it’s their right to do that. Taxes are a necessary evil, but in government, we need to do more with less. We just need to run a more efficient. … The government has enough to spend, but we need to spend it wisely.”

Coppola added he’s more concerned about commercial appeals than he is about residential appeals. He is running alongside Republican challenger Brian Tyrrell in the Nov. 8 election.

Mayor Keith Hartman said the donation by the Richard Stockton College of New Jersey helps alleviate some of the pressure. The college purchased the Seaview a year ago, and donated $300,000 to the township in lieu of paying taxes. Stockton is a tax-exempt entity, and without that donation, Hartman believes the revenue produced by the township could have been completely wiped out.

Hartman is also running for re-election. After establishing an independent campaign over the summer, he suspended his campaign last month, but was reported on Monday to have unsuspended his campaign.

Jackson was appointed tax assessor in 1991, and has seen three revaluations since. If the market doesn’t improve, Jackson has a “bad feeling” another revaluation might be necessary down the road.

“We’ve spent a lot of time on appeals,” said Jackson, who stated the process has been ongoing since January. “We have to pull the numbers, we have to go out and inspect the homes, and we had six days of hearings.”

Jackson has a staff of three in the Tax Assessor’s Office. While his staff is devoted to this endeavor, new construction and additions to homes are “put on the back burner.”

“We also do farm land and building permits,” Jackson said. “We do a lot of work behind the scenes. That stuff is put on the back burner until we reach the slow part of the year, which is now.”

His office now has three months to catch up before the process begins all over again.