Mt. Hermon Way. Ocean Grove homeowners want to know. Blogfinger file photo ©
Blogfinger wanted to have Mr. Bernard Haney, Neptune Township Assessor, take a look at our readers’ issues as they weighed in by commenting at our post called: “Just Wondering: Are we in for a major increase in property taxes?” Here is a link to that post:
Just wondering about prop. taxes
He has agreed to participate in this online interview-discussion format, so we are beginning here with our questions and then Mr. Haney’s first comment to be found by clicking on “comments” below.
BF approached Mr. Haney with these questions:
- There seem to be wide variations in the amounts of increased appraised value for different houses, even when expressed by percent increase. Citizens have reported increases ranging from 11.8% up to 50%. One woman told us that her house went up by $200,000. Another went up by $40,000. You can read the comments yourself.
— So the first question is: How do you explain the wide differences in the percent increase from house to house?
- People are worried about the tax increase that they anticipate will occur as a result of these appraisals. Can you explain what their reasonable expectations might be regarding the tax implications for homeowners?
—–Please explain the factors that go into the tax determination so that those who don’t know can hear it from an expert?
- What effect will these appraisals have on the resale value of their homes. Is there any data on this question?
- For those who did not get their appraisal letter, how can they arrange to get one?
Mr. Haney preferred this email approach to a live interview. So he got the ball rolling with a comment this afternoon. Go to the “comments” page by clicking on “comments” below.
The goal here is to help clarify and educate our readers regarding the process, so please go to the comments section to offer opinions and/or questions for Mr. Haney that would further that objective.
Paul Goldfinger, Editor @Blogfinger
Thank you Mr. Haney.
From an email to Mr. Haney: Bernie, I do appreciate your prompt and detailed responses, even though it took me until today to get it all figured out and formatted and properly labeled time wise.
I hope you will continue to keep an eye on this blogpost in case some citizens have more questions and in case the conversation continues.
You deserve (in my eyes and those of the BF readers) thanks and appreciation for doing what others in NT government would not do—ie stick your neck out in writing at this unique internet venue for the educational benefit of our citizens who read BF.
Thanks, Paul
Question 3. What effect will these appraisals have on the resale value of their homes. Is there any data on this question?
These numbers represent 100% of value for 2015 and will change again EVERY
YEAR going forward. As part of Ch15 PL 2013 The Assessment Demonstration
Project, all of Monmouth County will be reassessed every year going forward.
As with the assessments in 2003, I do not see a measurable effect on sales,
which continue to be strong in Ocean Grove.
Question 4. For those who did not get their appraisal letter, how can they arrange to
get one?
All of the letters have been sent out, I suggest that you call Realty Appraisal, and get the new value. The Revaluation File will be turned over to the Township in a few weeks when the values are completed. Until that time my office does not have access to those numbers.
Editor’s Note: These answers to our questions came into our inbox yesterday afternoon. Nov.24. Thanks to Mr. Haney for his prompt responses. —PG
Answers to questions 1 and 2:
Question #1: How do you explain the wide differences in the percent increase from house to house?
The percentage of increase year over year does not come into play in the role of the Assessor, although most property owners look at that, it is not something that we use at all.
The 2014 assessments were somewhere in a vector between 65% and 95% of value throughout the town, the average settled at about 80% overall. The 2014 assessments ceased to exist for us after they were certified in May, 2014.
We begin with a clean slate, and find “market value” for every property in town as of October 1, 2014. The ratable base will increase about 25% which will have a positive effect on the tax rate, but what that effect will be can not be determined until at least July, 2015 when budgets are completed and a rate is struck.
The tax dollars are not an issue in assessment, and if they become an issue, it is a lost cause. The question is, and remains, what is the value of my property on the open market as of October 1. 2014?
Sales and other information is always available on the Monmouth County OPRS site:
http://oprs.co.monmouth.nj.us/oprs/index.aspx
We have a large degree of confidence in these numbers, and welcome valid sales information that anyone has. Make your appointment with Realty or just stop by to see the sales that are available in B-11 (basement) while the hearings are going on. If you do not have an appointment, we will probably not be able to discuss it with you, but you are free to come in andlook at the sales book.
NOTE – If an inspector DID NOT get into your home, we had to GUESS what was in there, and as I have said at every one of our public meetings, I am a VERY BAD GUESSER, so I strongly suggest that you make an appointment with REALTY, so that you home can be reinspected, and the information corrected.
If you file and appeal on a house that has not been inspected, that will need to be done before the assessment will be changed. It is fundamentally unfair to all of the residents who allowed the inspectors into their homes, that we value an estimate or refusal the same way.
Question #2: Please explain the factors that go into the tax determination so that those who don’t know can hear it from an expert?
Tax rates are a mathematical formula that are based on budgetary needs of the County (and its sub categories, health, open space act.) Also, the Neptune School District and the Township. These factors are developed in mid 2015 and will finalize in a tax rate in July.
Bernie: Your initial comment came in at 1:43 pm yesterday (Nov 24.) It got accidentally deleted after being posted, so I apologize for that, and your initial comment is back again now, in order (above).
Your Nov. 24 initial comment also remains posted in the prior article dated Nov 22 called “Just Wondering..” So it can be read in both places, but I wanted the conversation to continue here.
Thanks, Paul
Dr Carol .. I answered all of Paul’s questions noted in the blog, and I assume that at some point he will post my answers. The answer to your question is that values increased by different percentages all over Neptune. The last revaluation was 2014, but if houses were renovated, added square footage, filed an appeal that resulted in a reduced assessment, they all changed the 2003 assessment, and pushed the assessment closer or further away from 100% of value. Also see above, the value of Neptune increased approximately 25% over last years assessments.
I wonder if Mr. Haney can tell us if the average change in the assessments in Ocean Grove is more, less, or the same as the average for the entire township? In other words, has the reassessment shifted even more of the tax burden onto OG?
If he does not have a breakdown for OG separately, can he tell us the overall assessed value of Neptune Township now and the overall assessed new value? We can then compute the average increase in assessment for the entire township, and compare it to the increase for our own homes. This will tell each of us whether to expect our taxes to go up or down given constant spending. For example, if the entire township is shifted up by 10% but my house went up by 20%, I can expect a significant increase in taxes – actually, 9%. (Ignoring the effects of exemptions like homesteader’s) But if my assessment went up only 5%, I’d expect a break in my taxes.
It’s awesome that Mr. Haney responded. Thank you. Could you please say a bit more, though — particularly on the issue of why two well maintained houses 1-3 blocks to the beach saw an 11.8% increase and 50% increase. While I recognize you cannot speak to any specific houses or their specific valuations, can you discuss what types of factors could drive such broad divergence?
Thank you again.
Let’s start the conversation here .. The Township’s ratable base will increase about 25% which will have a positive effect on the tax rate, but what that effect will be can not be determined until at least July, 2015 when budgets are completed and a rate is struck. If these assessments were in place in 2014 the tax rate would have been 25% less. So for discussion only .. a 25% increase in assessment is (plus or minus) a few hundred dollars the same tax bill for 2015.