2020 Bayonne Tax Revaluation – What you Need to Know
According to the Handbook of New Jersey Assessors, the revaluation program for Bayonne “seeks to spread the tax burden equitably within a taxing district by appraising property according to its true value and assessing it based upon such value. This is accomplished by the mass appraisal of all real property in the taxing district by an outside professional appraisal or revaluation firm.”
Of course, many people look at that and wonder what that even means, and more importantly, what it means for real estate values in Bayonne. Keep reading to find out the details of this Revaluation and what it means for your property taxes.
Get Past the Myths
The first thing that you need to know is that revaluation is not just a means to increase property taxes. There are certain situations when some properties will see an increase in their taxes during a revaluation, but that is done on a property-by-property basis and there may be some whose taxes even go down. You have to remember that an assessment, which is what they use to determine your tax burden, is merely there as a basis from which to measure how much tax liability you should have based on the value of your property or properties.
Ad Valorem
In the state of New Jersey, property tax is calculated using a method known as ad valorem, which translates to “according to the value”. The State Constitution has a section that clearly states that all properties must be assessed using the same standards of value, ensuring that taxes are calculated fairly and equitably among properties within a taxing district.
What Changes to Expect
Every single property is getting a new, independent appraisal that will help establish an assessment value so that accurate tax rates can be calculated. You can see a visual presentation of the changes in this helpful presentation from Appraisal Systems, Inc. We’ll explain what changes you can expect in your property values momentarily. First, though, here’s a breakdown of how it was determined that a revaluation was needed:
- The last revaluation was done in 1991
- The average ratio is currently 34.13%, with a deviation coefficient of 19.78%
- There were 722 appeals to tax assessments in 2018
- Economic changes in neighborhoods and properties
- Changing trends in home styles and sizes
- Legislation changes, including zoning and protected lands updates
Because of all of these elements, it was determined that a full revaluation would be the best solution for Bayonne. For property owners, this will mean a process that looks like this:
- A letter of introduction and brochure will be sent to each property owner at their address of record. Then, a field representative will arrive to perform the inspection of the property. They will look at things like exterior signs of economic gain or loss, such as views or zoning. They will then perform a full inspection of the property that includes measurements, condition reports, and a to-scale footprint drawing. The entire process should take less than an hour.
- In the event that an inspector visits and cannot view or assess the interior of the home, they will perform an estimate of the interior and leave a card for the homeowner. In the event that information is inaccurate or missing, they can call and reschedule an inspection.
- Next, the neighborhood will be analyzed and mapped to establish boundaries and land values, offering a reference point for determining tax values later on.
- All of the recent sales involving willing buyers and sellers (no foreclosures, etc.) will be plotted on this new map, helping further define values and location-related influences on property values within a given area.
- A market analysis is generated and combined with the new inspection information to help set new property assessment values and determine the appropriate tax rates for residents and property owners of Bayonne.
- Anyone who is dissatisfied with their assessment can go through a series of informal hearings to discuss how their property value was determined and whether they have any just cause to ask for a reassessment. After final values have been submitted to the county, property owners will be able to file a tax appeal under certain circumstances, including being able to use comparable sales to prove value.
This process is essentially going to be the same for commercial and industrial properties, with assessment and appeal procedures following commercial tax codes and laws. The resource above offers a detailed look at all of this information and can provide visual aids and further details to help you better understand the process. Basically, you have to understand that the goal isn’t merely to raise taxes. It is to provide a more accurate tax structure based on the city’s growth and changes over the years. You can also stay updated on the revaluation of Bayonne and current assessment information at the Appraisal Systems, Inc. website.
