2A — January 27 - February 9, 2012 — Mid Atlantic Real Estate Journal
MARE journal.com
A Greener NJ............................................................ 6A Aegis Energy Services.............................................. 7A A-L Services, Inc. ................................................... 18A Aldo Design Group ................................................. 14A Allied Building Corp. ............................................. 30A All-Rite Construction ............................................... 8B Atloona Blair County ............................................. 33A Auction Directory ..................................................... 4A Barry Isett & Associates ........................................ 20A BEP......................................................................... 29A Bill Board Directory............................................... 40A BL Companies. ......................................................... 8B Brasler Properties ...............................................IBC-A BR Kreider & Son, Inc. ............................................ 2B Capitol Aerials.......................................................... 7A Carl Berger Associates........................................... 36A CBC Bennett Williams.......................................... IC-B Cooper Roofing ....................................................... 15A CREATE ................................................................... 8B D2CAArchitects LLC............................................. 21A Delmarpa Janitorial Svcs. ..................................... 16A E&R Properties. ..................................................... 14A Earth Engineering ................................................... 2B Final Flat Roof (Hudson Valley Coatings, LLC.).. 19A Fowler ..................................................................... 24A Gilbeaux Associates ................................................. 7A Greenville - Reynolds............................................. 34A H.T. Lyons............................................................... 21A Haftek CWS............................................................ 24A HESS ...................................................................... 14A Hylant Environmental............................................. 3B Interchange ............................................................ 31A IREM ................................................................. 22-23A Jersey City Economic Dev...................................... 27A Katz Properties ........................................................ 1B Lipinski................................................................... 13B M Miller & Son......................................................... 3A Marcus & Millichap. ................................................ 7B Mercer County........................................................ 26A Meridian Capital Group. ......................................... 3A Metro Commercial ................................................... 9B Mid Atlantic BC Directory..................................... 39A NAI Summit ................................................. 40A,FC-B Nave Newell ............................................................. 3B New Castle County, DE ......................................... 37A NJ Meadowlands Commission .............................. 28A NRC Realty & Capital Advisors .............................. 1A Ondra-Huyett Assoc. Inc........................................ 20A PennCap ............................................................... BC-A Penn’s Northeast .................................................... 35A Penn-Northwest Dev. Corp. ................................... 34A Poskanzer Skott Architects ................................... 16A Provident Bank ..................................................... IC-A RD Management LLC....................................... 10-11B Remco........................................................................ 3B Renewable Power ..................................................... 9A Retail BC Directory................................................ 15B Retail Brokerage Directory................................16-I7B ROCK Commercial................................................... 2B RT Environmental Svcs. ........................................ 32A Spillman Farmer Architects .................................. 30A Subway ..................................................................... 6B Sun Farm Network .................................................11A TRG........................................................................... 3B West Side Hammer Electric. ................................. 21A MAREJ A DVERTISERS D IRECTORY
Mid Atlantic R EAL E STATE J OURNAL Publisher ............................................................................Linda Christman Co-Publisher .........................................................................Joe Christman Section Publisher ..............................................................Michael Campisi Section Publisher ................................................................Elaine Fanning Senior Editor/Graphic Artist ................................................ Karen Vachon Production Assistant ........................................................ Rachel Rugman Office Manager ...................................................................Joanne Gavaza Editorial Consultant ............................................................. Ben Summers Guest Columnist .......................................... Dennis A. Scardilli, Esq., MAI Mid Atlantic R EAL E STATE J OURNAL ~ Published Semi-Monthly P.O. Box 26 Accord, MA 02018 (Mail) 312 Market Street, Rockland, MA 02370 (Overnight) Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, P.O. Box 26, Accord, MA 02018 USPS #22-358 | Vol. 24 Issue 2 Subscription rates: $99 - one year, $198 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Toll-Free: (800) 584-1062 | MA: (781) 871-5298 | Fax: (781) 871-5299 www.marejournal.com
Mid Atlantic Real Estate Journal
By Dennis A. Scardilli, Esq., MAI Tax Appeals & Real Estate Professionals - Perfect Together
N
o, I can’t say it with the Brahman accent of former New Jersey
Governor Thomas Keane, but I believe it with the same level of sincerity he put into those 1980s tourism ads. Not exactly Arnold and Maria, but then again, the dynamic of that, now shattered, relationship is not so different from the one between taxpayers and the tax appeal process. Without going into lawyer- speak, here’s what a real estate professional needs to know about the tax appeal sorted state of affairs (besides con- tinuing to read the MAREJ). Every municipality in New Jersey, and probably in the entire MAREJ publication area, relies primarily upon real estate taxes to fund their budgets. Real estate taxes rely on the market value of real property, as expressed in real property assessments. Real estate values have plummeted from when most assessments were set and values are still going south. As a result, the declining real estate market means that municipal budgets are tighter than the pants on the Jersey Shore cast. So, don’t expect a high five when you or your client file an appeal, but don’t take it personally. It gets worse. In New Jersey, the municipality is required to credit the taxpayer with the full amount of the real estate taxes when an assessment is reduced. By the time that judg- ment is rendered, taxes have already been paid.
The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
While the municipality must credit the taxpayer with the full amount of overpaid taxes, the municipality does not get that money back from the school board and county. In many jurisdictions, the school board and county tax account for at least 50%, and perhaps up to 70 or 80% of the real property tax burden. To minimize the effect of this, you may want to cut a deal where a minimal reduction is granted in the current year, but more signifi- cant reductions are granted in subsequent years. New Jersey’s tax assessment and budgeting process is quill pen and green eyeshade in a digital world. Almost every one of the state’s 566 munici- palities has an assessor. Most of them are part time, with minimal and/or antiquated resources. Except for a few large jurisdictions, local gov- ernments cannot afford the high-tech valuation tools nec- essary to keep up with the real estate market. As a result, it is more diffi- cult for a municipality to keep up with changes in real prop- erty value than it is for anyone
over 21 to keep up with Kim Kardashian’s paramours. Many other state’s taxing jurisdictions utilize linear re- gression computer programs to track changes in market value and revise assessments annually. While that does not facilitate get-out-the-vote on Election Day, voters actually have the power to reward pub- lic officials for doing the right thing. What can a real estate pro- fessional do about the current state of affairs of real property assessments in New Jersey (and other MAREJ states)? 1) Do not feel bad about filing, or encouraging your clients to file, a tax appeal. Do not even feel bad if you are a municipal government official. Look at it this way. It is not the government’s money. It is the people’s money. 2) Make a realistic evalua- tion of whether or not the prop- erty is due a reduction in as- sessment. Do some homework, hire an appraiser and/or talk to an attorney who is familiar with the real property tax as- sessment appeal process. continued on page 3A
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