West Orange Tax Revaluation to Start

West Orange will begin its first property tax revaluation in more than 25 years this week, Patch has learned.

"It's a requirement in New Jersey and West Orange is long overdue," said township Mayor Robert Parisi. "We've retained a company, done the tax maps and they will start this week."

The township's last revaluation was in 1984.

"We're way behind schedule," said Parisi. "The hope is it will level off and equalize the taxes."

Kevin Dillon, the township's tax assessor, said the current house is assessed at 22.81 percent. After revaluation, the ratio should be close to 100 percent, he said.

The purpose of the revaluation is not to raise taxes, but rather to make them fairer by adjusting the value of the properties being taxed. So, in theory, if the value of all of the property in West Orange doubled, the town government would lower the tax rate so it ended up collecting the same amount of money as it does now. But since different properties would now have a new valuation, their owner's taxes might go up or down.

Appraisal Systems, Inc., of Morristown, the company hired by the township to conduct the reassessment, did not return a call seeking comment.

"The current tax rate is $13.008 and the theory is the rate will go down," Dillon said.

Parisi said the process is expensive and time consuming, costing more than $1 million.

Dillon said there are roughly 15,000 line items total in the township to be re-valued, including commercial and residential properties.

"We knew for the last couple years we had to do this and letters to households officially went out in early May," said Parisi. "Now, a lot more communication will go out."

This communication includes two tentatively scheduled August meetings with one at the municipal building and one at West Orange High School.

West Orange residents were sent a letter dated May 2010, signed by Dillon and Ernest F. Del Guercio, chief executive officer of Appraisal Systems, Inc., to inform them of the process. Township officials said homeowners will receive another letter this week informing them that the revaluation has started.

Dillon said the current housing market likely won't have an effect specifically on the township.

"The market is down everywhere," he said. "They (Appraisal Systems, Inc.) look at sales, what's selling and what they're selling for and they come up with a new value and it will be as close to what it will be for a new house."

Elaine Ehrenkranz, a real estate agent with Towne Realty Group, said the revaluation could help homeowners.

"It's hard to say right now what type of a tax rate we have," she said. "Whether some people have been taxed highly, those taxes might go down and some on the lower end might come up."

She said the process could result in a positive spin on the current real estate market in the township. "Some pay $20,000 in taxes when they should pay $15,000," Ehrenkranz said. "It's better to revaluate now instead of two or three years ago when property values were high."

Bob Meaux, another agent with Towne Realty Group, said the revaluation will vary in helping current and new homeowners.

"I think that this will be helpful to a lot of homeowners, but it will be a case-by-case basis," he said. "What we may see is that a lot of sales that are happening under $400,000 … will be the most affected by an increase or decrease in taxes."

Either way, Dillon said the process will take several months.

"Homeowners should have new values in late November or early December," he said. "They'll go around to every house, measure the outside for square footage and then measure the inside."

He said those conducting the revaluation will have identity badges that people can ask to see before they enter their house.

Carol Churgin, of West Orange, said she's fearful her taxes will rise. "My taxes are going to go up," she said. "That's my big fear."

Carla Lilien, of West Orange, said it makes homeowners think what will happen to their house value.

"It makes you wonder what the bottom line is," she said. "What was it before and why are they (doing revaluation)?"

Dillon said in the past two years, the township was ordered to undergo the revaluation by 2011. He said the latest hold up was because tax maps weren't ready at the state level.

"Part of the reason for the wait is a lot of towns were fighting their revaluation order based on the fact that Newark refused to undergo the revaluation," he said. "Then once Newark went, it was natural the other committees followed."

Meaux said the revaluation is a two-part process for homeowners.

"After homes are reassessed across the town, the council will have the opportunity to adjust rates if it's needed," he said. "If a home is reassessed at $50,000 less than what it is (now), but if the tax rates go up, then their overall monthly payments may stay the same."

Dillon said once the revaluation is complete, homeowners will receive a letter to schedule an appointment for an overview.

"You can make sure they did it correctly and when everyone agrees, then it will be an assessment," he said. "If you're still not happy, you can file an appeal."