Toms River Reassessments Give Some Residents Jitters

TOMS RIVER, NJ — As Toms River residents receive letters notifying them of their new property assessments, for some the numbers have caused alarm.

No one should push the panic button just yet, however, Toms River Mayor Maurice Hill said last week.

Professional Property Appraisers, the company the township contracted to do the mandated revaluation, has been sending letters to residents stating the new property assessment. The letters also include an estimate of the 2022 annual taxes, and a comparison with their 2021 assessment and taxes.

For some residents, the estimated 2022 taxes show a significant increase, based on the 2021 tax rate. But that estimate doesn't account for work that remains to be done by the township when it receives the final tally of all the new assessments, Hill said.

The township was ordered by the Ocean County Board of Taxation and the state Attorney General's office to undergo a property revaluation because property assessments had fallen below 85 percent of their current value, Hill said.

The township initially was ordered to do the revaluation for the 2020 tax year, but requested a one-year extension due to staffing issues in the town's tax assessor's office and delays in getting the tax map from the state; that extension was granted before the pandemic hit. A second one-year extension was granted in April 2020, but the county tax board refused to consider a third, according to the township timeline on the revaluation.

The last revaluation was in 2008, Hill said, and the real estate market, especially in the last two years, has pushed home values higher. As a result, the township will see an increase in its ratables, which is the entire value of taxable property in town.

Once the town has that new ratable amount, the tax rate will change because the tax levy will be redistributed, Hill said.

"The amount (of the tax levy) will be divided by the ratable base," Hill said.

For some, their municipal property taxes will rise, and for some, their municipal property taxes will decrease; typically after a revaluation, one-third of properties see increased taxes, one-third see a decrease, and one-third see no change.

The new rate will not be settled until July and will not be reflected until the third- and fourth-quarter tax bills, Hill said.

For those who see an increase, it's typically a reflection of the length of time since a property was last assessed, and the changes in the real estate market in that time.

For residents who believe their assessments are too high, there is time to appeal.

Residents can contact Professional Property Appraisers at the phone number in the letter about the new assessment to schedule a meeting to challenge the assessment. If the resident can provide compelling evidence that the assessment is too high, such as sales of similar properties in Toms River (generally in the same vicinity as the resident's home), then the appraisal company can change the assessed value, officials said.

The final day to schedule appointments with Professional Property Appraisers is Feb. 4, Hill said.

Residents who still feel their assessment is inaccurate after meeting with Professional Property Appraisers can file an appeal with the Ocean County Board of Taxation. Those appeals must be filed by May 1, and the same need for comparable property sales applies.

Hill said the township paid Professional Property Appraisers a fee to handle the appeals this time. In 2008, the town's attorneys were stuck handling 4,000 property tax appeals after the company that did the assessment disappeared after the assessment was done.

He said he would like to see Ocean County move to the system that Monmouth County uses, where 20 percent of all the property in a town is reassessed each year. That avoids long gaps in property reassessments, and reduces the wide swings in value. Town assessments are never more than five years old.

In the meantime, Toms River officials have been receiving a number of calls from residents since the assessment letters have gone out, and Hill is urging people to remain calm because there is still work to be done before the new tax rate is finalized.

"The bottom line is this: don't push the panic button," Hill said. "You have opportunities to appeal."

Sign up for Patch alerts and daily newsletters here, or download our app to have breaking news alerts sent right to your phone. Have a news tip? Email karen.wall@patch.com Follow Toms River Patch on Facebook.