By: centraljersey.com
The Princeton Borough Council also heard what legal solutions are available in regards to the recent revaluation and what relief is available to residents from Borough Attorney Maeve E. Cannon, of Hill Wallack in Princeton.
Below is a summary of her memo to borough officials:
Can the council reject the revaluation outright? Can the borough modify the revaluation? No, it does not have authority to do either of these options. The tax assessor has the duty to assess property for the purpose of general taxation and the final determination of assessments on property in a revaluation is solely within the discretion of the tax assessor.Municipalities may not alter or reject the revaluation because it is within the duties specifically delegated by the Legislature to the municipal tax assessor. Individual home owners can file appeals if they feel their assessments are incorrect.
Can the council order another revaluation? Yes, a town can voluntarily conduct a revaluation, but it is an expensive undertaking.
Can anybody legally challenge a revaluation? A taxpayer or a taxing district may appeal before or on May 1 to the county board of taxation by filing a petition of appeal. If the assessed valuation of the subject property is greater than $1 million, the complaint may be filed directly with state Tax Court.
What can we do to require ASI to disclose information to taxpayers? Regulations provide for a taxpayer review procedure.ASI was retained under contract with the borough and the borough retains the purse strings. If ASI has not been forthcoming with information on individual assessment and the methodology for determining those values, the borough can consider withholding payment under the contract and putting ASI on notice that the borough considers it to be in breach of its contract.
How to mitigate the effects of revaluation?
– Reduce interest rates on delinquent property taxes and annual delinquent assessments; the borough has already done this by resolution.
– Statutory phase-in program: The Revaluation Relief Act of 1993 permits any municipality to phase in extreme property tax increases arising from a revaluation over a three-year period. Eligible properties are defined as any parcel located within an area declared in need of rehabilitation.
– Overall review of values: There are several ways to revisit property values that include assessment maintainer, district-wide reassessment and revaluation in following year.
– Using affordable housing program funds to provide relief: This includes forgivable loans, but this measure could be useless because any "loan" that is forgiven over a period of time could be considered a gift and that is in violation of the New Jersey Constitution, which prohibits such actions. Another program is COAH and using Affordable Hosing Trust Fund monies to offer grants to homeowners willing to deed restrict their properties.
– Public/Private partnership providing low-interest loans administered by the borough. This idea has also been considered by Princeton Township.
– Using the Senior Resource Center to find reverse mortgages. This is an option for seniors who want to stay in their homes to use the equity they’ve built now and debt will be repaid by the estate when the home is sold.
– Pursuit of additional PILOT funds from Princeton University and review of Exempt Uses: a resolution passed Tuesday night seeks to re-open the negotiations of the University’s PILOT.
– Appeal of the borough’s tax appointment by the county.
The full memo is available at Borough Hall for residents who wish to view all of the attorney’s answers.
