In September 2007, Appraisal Systems, Inc., completed its revaluation of all South Orange properties – a process mandated by the Essex County Board of Taxation and the State of New Jersey.
These are the answers to ASI's most Frequently Asked Questions regarding the valuation process. Also see:
Frequently Asked Questions 1: The Inspection Process
Frequently Asked Questions 2: The Valuation Process
Frequently Asked Questions 3: Finalizing the Revaluation Process
Table of Contents
- When will the results of the revaluation be applied?
- How does the assessed value of a property impact its taxes
- Is there an appeal process, if I disagree with my assessed value?
- Can I appeal my taxes?
- What is the new tax rate?
When will the results of the revaluation be applied?
New property assessments resulting from the revaluation apply to property taxes levied in 2008, and billed in the third and fourth quarters.
How does the assessed value of a property impact its taxes?
The assessed value is used to calculate the property tax levy, by multiplying a property’s assessed value by the tax rate. In the first and second quarter, however, taxes are billed at 25% of the prior-year’s assessment and tax rate – reflecting no impact for tax rate or assessment changes in 2008.
In the third quarter, tax bills are based on new assessed values from the revaluation, and include an estimated 5% annual tax increase over the prior year -- unless the actual increase for South Orange, our School District, or Essex County is finalized. The estimated annual 5% increase is billed in the third and fourth quarters, as a 2.5% increase or 27.5% each quarter, plus/less any finalized tax rate differences higher/lower than 5%. On this basis, third and fourth quarter taxes include "catch-up" amounts, because of the absence in the first two quarters of any changes for new assessed values or new tax rates.
Is there an appeal process if I disagree with my assessed value?
If you are dissatisfied with your assessment, you can file a formal appeal in 2009 with the Essex County Board of Taxation, which must be received prior to April 1, 2009. Your appeal will be heard by a Commissioner of the Board of Taxation; and, you will be given an opportunity to state the reasons you believe your assessment is inaccurate. After reviewing the facts presented, the Board will render a decision as to whether an adjustment is in order.
If you are not satisfied with the decision of the Board of Taxation, you have the right to file an appeal with the Tax Court of the State of New Jersey. This must be done within 45 days of your notification. This step in the process is formal, taking place in a courtroom setting before a Tax Court Judge.
Can I appeal my taxes?
Under State law, the actual tax on a property cannot be appealed. However, an aggrieved property owner can file an appeal with regard to the assessment of value (see previous question). The tax rate and a tax assessment are two distinctly different things, which sometimes are confused. The tax rate is determined by the dollar amount needed to operate South Orange, our School District, and Essex County, while the tax assessment provides the value upon which to apportion the taxes. Taxpayers can appeal a tax assessment, but not a tax rate.
What is the new tax rate?
The new tax rate will be determined after the School District, Essex County, and South Orange finalize their 2008 budgets.
Tax-Related Links
Pay your South Orange taxes online
Appraisal Systems, Inc. - Corporate Website
Appraisal Systems, Inc. - South Orange Revaluation
Tax Assessor’s Office
Tax Collector’s Office
County Board of Taxation – Petition of Appeal - Form A-1 (Use legal size paper)
Tax Court of New Jersey |
