By Lea Kahn, Staff Writer
Aiming to allay residents’ concerns about the impending township-wide property revaluation set to begin next month, Lawrence Township officials met with residents last week in the first of a series of meetings to explain the need for it.
About 50 residents turned out to listen as Municipal Manager Richard Krawczun, Tax Assessor Geoffrey Acolia and Tom Davis, president of Professional Property Appraisers Inc. which is conducting the revaluation walked them through the revaluation process at the Jan. 24 session at Lawrence High School.
The series of meetings is being jointly facilitated by the Lawrence League of Women Voters, which is seeking to ensure communication and transparency in the process, according to Nicole Plett of the league.
Four additional public meetings on revaluation have been set for later this month at locations throughout the township, followed by a summary meeting of the revaluation meetings by the League of Women Voters March 6 at 7 p.m. at the Lawrence Library.
Setting the tone for the meeting, Mr. Acolia, the township tax assessor, told the group that the Burlington County town where he lives is undergoing a town-wide revaluation. He said he, too, “share(s) your frustration. I am sitting on the edge of my chair to see how it will affect me.”
Then, Mr. Acolia launched into an explanation of property revaluation and why it is needed.
Revaluations are conducted by municipalities to appraise all property from vacant land to gas stations, shopping malls, bowling alleys and homes, Mr. Acolia said. The purpose is to “try to get the value back up to its full, fair value,” which is known as fair market value the price that a willing buyer would pay to a willing seller, he said.
The goal of a revaluation is to spread the tax burden equitably among all property owners, he said. The owners of two properties that have essentially the same fair market value should pay essentially the same amount in property taxes.
Inequitable assessments are the result of changes in the characteristics in areas or neighborhoods, fluctuations in the economy, and changes in zoning which can either enhance or adversely affect value, Mr. Acolia said. Property owners who have successfully appealed their assessments also cause inequalities in a neighborhood. Some owners appeal and others do not, he said.
Lawrence Township is undertaking the township-wide revaluation because it has been ordered to do by the Mercer County Board of Taxation, Mr. Acolia said. The last revaluation occurred in 1993 and the new assessed values were placed on the books in 1994.
Mr. Acolia pointed out that while a revaluation will affect each property’s assessment for property tax purposes, it does not mean that the taxes will increase on every property. Some properties are over-assessed and others are under-assessed. When the revaluation is completed, every property will be assessed at its fair market value.
As an example, he cited three identical properties whose assessments are not identical right now. One property is assessed at $125,000, another at $100,000 and another at $75,000. They are paying different amounts in property taxes $5,611.25, $4,489 and $3,366.75. But when the job is completed, they will all be assessed at $200,000 and the owners will pay the same amount in property taxes.
Mr. Acolia also noted that the new assessments would not result in a property tax windfall for the municipality because the township may only raise the amount of money that it needs to operate. The municipal budget is subject to a state-mandated cap on increases.
Property owners also should not assume that their post-assessment property tax bill will be based on the 2013 tax rate which includes the school district and Mercer County because it will be adjusted downward to reflect the new values, he said. The 2012 tax rate was $4.49.
Before launching into an explanation of the revaluation process, Mr. Davis, the president of Professional Property Appraisers Inc., said this is a good time to undertake a revaluation because the real estate market is stabilizing. He said his firm has been called in to serve as a consultant for towns that undertook property revaluation in 2007 and 2008.
Turning to the nuts and bolts of the revaluation process, Mr. Davis said the field representatives, or data collectors, all wear uniforms that identify them as Professional Property Appraisers Inc. employees. They all carry photo identification cards.
The first appraisers, or data collectors, are expected to land in Lawrence next month, Mr. Davis said. Each data collector is equipped with a laptop computer that contains information about each property. The data collectors will begin the process by photographing the exteriors of properties from the street.
By mid-February, the data collectors will begin knocking on doors to view the interior of every property, Mr. Davis said. He urged residents not to allow anyone into their house who cannot provide adequate proof of identification, and to call the Police Department if they are suspicious.
The data collector will measure the exterior of the house and note whether there are garages, in-ground swimming pools or accessory buildings, before asking to go inside, Mr. Davis said. The property owner’s presence is not needed while the data collector is reviewing the exterior of the property, but the owner is needed for a walk-through of the interior of the house.
Once the data collector is allowed inside, Mr. Davis said, the property owner should accompany him throughout the house. He or she will check on the number of bedrooms, bathrooms, the type of heating system, central air conditioning, the size and percentage of finished basements or attics, and the number of fireplaces. The overall condition of the house but not its owner’s decorating style is important, too.
The data collectors will be taking notes, and property owners should feel free to tell them anything they think the data collector needs to know, Mr. Davis said. The same data collector will be assigned to the same neighborhood.
If a property owner is not at home when the data collector knocks on the door, he or she will leave a notice with a return date and time, Mr. Davis said. If the data collector cannot get inside on the second visit, a notice will be left that asks the owner to set up an appointment on a weekday, an evening or on a Saturday.
But if the data collector cannot gain access to the interior of the house at all, then an estimate of the interior and its amenities will be made, Mr. Davis said. The goal is to complete the revaluation process of every parcel by the end of November. Property owners will then be notified of the new assessments.
The assessment of each residential property is based on the most current sales within the last six to nine months while assessments on commercial properties are based on the income approach, Mr. Davis said. All property owners may make an appointment with a Professional Property Appraisers Inc. representative to review the new assessment, he said. Property owners who are not satisfied may file an appeal by May 1, 2014.
When the session was opened up for questions, one audience member asked whether Lawrence Township could expect a repeat of what occurred during Princeton’s revaluation two years ago, when assessments soared and many owners sold their properties.
Mr. Acolia replied that Princeton’s revaluation was conducted by a different company. He assured the group that Professional Property Appraisers Inc. has a series of checks and balances. The information is passed on to the Lawrence Township Tax Assessor’s Office, where it will receive a “heavy duty” review, he said.
Mr. Davis said his data collectors are fulltime employees of his company. Every bit of information is time-stamped and he said he can tell when a data collector has been at a specific house. He said he tries to “weed out” employees who won’t do a good job.
Mr. Davis added that his company works closely with Mr. Acolia. The company sets the assessments and then turns them over to the Lawrence Township Tax Assessor’s Office for review. He said his company bid for the Princeton revaluation, but it was rejected because the bid was too high.
When another resident asked about the ratio of land-to-house value citing one of the issues raised during Princeton’s revaluation, in which the value of the land exceeded the value of the house the answer is that the revaluation company sets it. The important number is the “bottom line,” or the assessed value, and not the breakdown between land and house, Mr. Acolia said.
The next sessions are set for Feb. 7 at the Lawrenceville Fire Co. on Gordon Avenue; Feb. 13 at the Lawrence Senior Center on Darrah Lane; Feb. 21 at the Slackwood Fire Co. on Slack Avenue; and Feb. 25 at the Dempster Fire Training School on Lawrence Station Road. All meetings begin at 7 p.m., except the Feb. 13 session, which starts at 1:30 p.m.

