By Lea Kahn, Staff Writer
Paving the way for property revaluation, Township Council awarded a contract to a revaluation firm and gave final approval to a bond ordinance to pay for the project Tuesday night.
Township Council unanimously awarded a contract for $729,780 to Professional Property Appraisers Inc. The Delran-based firm was the lowest responsible bidder among the five revaluation companies that submitted bids. A separate contract will be awarded to an appraiser to review the Quaker Bridge Mall and its four anchor stores.
The council also approved the $800,000 bond ordinance to pay for the revaluation. The money will be repaid over a five-year period because it is a “special emergency appropriation,” said Municipal Manager Richard Krawczun. State law allows the five-year payback because the Mercer County Board of Taxation ordered the revaluation.
Mayor Jim Kownacki and Councilmen David Maffei, Michael Powers and Greg Puliti voted to approve. Councilwoman Cathleen Lewis was absent.
Once a contract has been signed with Professional Property Appraisers, public meetings will be held to explain the revaluation process to property owners, Mr. Krawczun said. They will learn what to expect during the revaluation process.
Mr. Krawczun pointed out that the last township property revaluation occurred in 1993, and went on the books for the 1994 tax year. State law requires all properties to be assessed at 100 percent of fair market value, which is what a willing buyer would pay a willing seller. But when the ratio of assessed value to fair market value falls below 70 percent, a municipality may be ordered to conduct a revaluation.
Between 2007 and 2010, when the Mercer County Board of Taxation ordered the revaluation, the ratio in Lawrence had ranged from 53.15 percent in 2007 to 48.76 percent in 2010. The ratio was 50.77 in 2011 and it is 49.2 percent for 2012.
The new assessments will take effect in 2014. It is important for property owners to realize that the 2014 municipal property tax rate will be adjusted downward to account for the new values, Mr. Krawczun said. Property owners should not apply the 2013 municipal property tax rate to the 2014 assessments.