Every year, select municipalities conduct appraisals of all properties within their borders to make sure tax assessments reflect the fair value of each property within the district. This process, known as a revaluation, can be alarming to homeowners (as revaluations can increase, or even decrease, your tax burden). Revaluations have been completed in a range of municipalities throughout the state this year, so it’s important to know as much about them as you can.
Why are Revaluations Conducted?
While many people think revaluations are conducted so municipalities can collect more tax revenue, the main purpose is to guide the annual budget set for the town, which is in part based on real estate taxes, as well as to ensure that everyone is paying their fair share (which sometimes leads to townships imposing less of a tax burden on some properties).
How Will My Taxes be Impacted by a Revaluation?
Generally speaking, when a revaluation is completed, a portion of the municipality will experience an increase in taxes, while a portion will remain the same and another portion will have their taxes reduced. If your property was over-assessed prior to the revaluation, there’s a good chance your taxes will be decreased, and vice versa.
Will I be Able to Meet with the Revaluation Company?
Revaluation companies will send you a preliminary number before making the number final with the local county tax board, and at that time, you’ll have an opportunity to meet with said company.
What Should I do if the Revaluation Company Doesn’t Change the Value?
If the revaluation company doesn’t change the value, you’ll want to file a timely tax appeal. Once a tax assessment is placed on a property, however, the tax assessment is presumed to be correct- so the burden of proof will lie with you.
Source: National Law Review