By Christina Whittington, Special Writer
MANSFIELD — The people have spoken.
An “extraordinary” amount of tax appeals filed by concerned residents propelled Burlington County to command that Mansfield Township undergo a property value reassessment for the entire municipality.
Following a public hearing, an ordinance authorizing an emergency appropriation to update revaluations of property within the township, was approved unanimously by the Township Committee on July 25.
”We are under county order . . . to reassess the property value within Mansfield Township,” said Joseph Monzo, the municipality’s chief financial officer and treasurer, during the July 25 Township Committee meeting. “We are under that order because of the extraordinary number of tax appeals that have been filed on behalf of the homeowners, residents and property owners. They have told us we need to revalue our properties.”
The revaluation services is estimated to cost Mansfield $270,000, the cost of which, according to Mr. Monzo, the township is allowed to spread over five years.
In 2012, 340 tax appeals were filed by Mansfield Township property owners between Jan. 1 and April 1.
In an email to the Register-News received Tuesday, Mr. Monzo said, “While not all judgements have been received, most likely all will be successful as they will surely get a reduction of some sort due to the declining market.”
Mr. Monzo said the loss in assessed value to Mansfield Township from the appeals so far is more than $15 million.
”We do not have a 2012 tax rate yet because the county has not adopted its budget,” he said. “Based on last year’s rate, the out-of-pocket loss is approximately $291,000. When the 2012 full tax rate is determined, I expect the actual loss for us to be about $325,000.”
At the July 25 meeting, Mr. Monzo said the last bid for a revalutation was six or seven years ago when property values in the township were about 50 percent of what the market was.
”Now it’s probably the other way,” he said. “Our property values, as a whole, are probably slightly over what the market value is — which is why the town has to do this.”
Professional Property Appraisers Inc. was awarded the contract to perform the revaluations.
”They will make every attempt to visit every home in the township to determine what’s in that home, make sure everything is up to speed with codes, and they will assign a property value based on comparable sales in the neighborhood and the community as a whole,” Mr. Monzo said.
Mr. Monzo also said the revalution process will save considerable money.
”When (the township loses) an appeal in taxes for reduction of assessed value, we have to take that reduction and multiply it by our local tax rate, the elementary school rate, the regional school rate and the county rate and give all that money back to the homeowner,” Mr. Monzo said. “We have already given that money to the county and the schools. All that money comes out of our pocket. When we change the assessed value, that incentive will go away.”
All new revaluations are expected to be completed and in place by Jan. 1, 2013.
”So when we develop our 2013 budget, (the township), the Board of Education and the county will be using the most up-to-date values of every property in Mansfield Township,” Mr. Monzo said.
Township resident Debra DeLain, who moved to the township in 2009, was the only member of the public who spoke during the public hearing.
”I do not understand what updating and revaluation practically mean. Is it possible things will go up? Is it possible things will reduce?” Ms. DeLain asked.
Deputy Mayor Robert Higgins told Ms. DeLain that the assessed value of individual properties could be affected in one of three ways: the value could increase; it could decrease; or it could stay the same, “depending on how old your house is, depending on what the comparable sales are in your neighborhood or the neighborhoods surrounding you.”
Deputy Mayor Higgins added, “The purpose of a tax revaluation is not to generate any more revenue for the township but to distribute the cost amongst the properties based upon their property values and how the state of New Jersey assesses real estate taxes.”
Mr. Monzo addressed the impact the revaluation will have on property owners who already have filed tax appeals versus those who did not submit one.
”These individuals who appealed their assessments in 2012 and won a reduction in their appeal between 20 and 30 percent are not going to see very much of a change in their assessed values; they already got it,” Mr. Monzo said. “The people who did not file the appeals who were taking the share of the burden of everyone else, they are going to see their assessed values drop more than people who already filed for their appeals.”
He added, “These people are going to get their relief through the township.”
Township Attorney Michael Magee said, “This will really level the playing field. As assessments go up, rates go down. As assessments go down, rates go up. Keep in mind, we still have to raise the same dollars to run the town.”
Mr. Magee said, “Now it’s going to be raised by everybody, and those who didn’t file an appeal will not be sheltering the burden of those who did.”
The next regular Mansfield Township meeting is scheduled for 7:30 p.m. Aug. 22.
