Changes would go into effect in 2009 tax year
By: Kara Fitzpatrick
The Mercer County Board of Taxation has ordered that Princeton Borough and Princeton Township conduct a property revaluation to be implemented during the 2009 tax year, county Tax Administrator Martin Guhl confirmed Monday.
The last revaluation in the township and borough took place in 1996.
The impact of the revaluation will differ among properties. However, values will essentially double in order to meet market value, said Neal Snyder, the tax assessor for both the borough and township.
Mr. Guhl said the revaluation was ordered because a disparity was evident among the property values in the municipalities.
"The market has risen in relationship with the assessment," Mr. Guhl said. "The board felt that (the township and borough) should bring all of their assessments into market value."
According to Mr. Snyder, the ratio of assessed value to market value is 51.13 percent in the borough and 53.42 percent in the township. Mr. Snyder said that some neighborhoods will feel the effects of the revaluation more than others, but exactly which neighborhoods and properties are apt to increase the most in value remains to be seen.
Mr. Snyder said the state uses three criteria to determine when municipalities must conduct a revaluation. Those criteria include: the number of years that have passed since the last revaluation; the ratio of assessed value to market value; and the coefficient of deviation. The coefficient of deviation measures how assessments in a municipality measure up against each other. The greater the deviation, the less uniform the valuations are in a municipality and, in turn, the less fair the distribution of the tax burden among residents.
Inspections for the revaluation in the Princetons will be conducted in 2008, Mr. Snyder said, adding that an outside firm would be hired to assist with the inspections.
Borough and township officials said while the procedure is standard in order to equitably generate property taxes, some owners might face sticker shock when they learn how much their property is really worth.
"There will be surprises for a lot of people because the property values here, their worth, has gone up quite a bit," Princeton Township Mayor Phyllis Marchand said.
However, Mayor Marchand said residents should not be alarmed by the revaluation. She said the township will employ a program designed to educate residents about exactly how the process is conducted and what it means.
Mayor Marchand said the two years the municipality has to prepare for the revaluation will provide ample time to provide the necessary education.
"Every community knows this is going to happen," she said. "We’re lucky because we have two years to get ourselves prepared and get the community educated on the process."
Borough Mayor Mildred Trotman said the cyclic nature of the revaluation is necessary in order to be as fair as possible to all property owners.
While noting that some neighborhoods will feel the effects from the revaluation more than others, Mayor Trotman said the process is something that needs to be done to ensure all taxpayers are paying their fair share.
"It is the only way to distribute equitably across the board," Mayor Trotman said. "It will be adequately addressed, I am sure."
According to Mr. Snyder, the average assessment for a home in the borough is currently $347,375 and the owner of such a property pays $12,610 in property taxes. In the township, Mr. Snyder said the tax bill for an average home assessed at $424,038 is $13,569.

