Homeowners getting a break In 14 towns in Bergen and Passaic counties, homeowners can expect a measure of tax relief this year, while commercial properties are likely to face steep increases. The reason: Those towns last year conducted property reassessments that brought tax valuations more in line with actual market prices, as a result of the real estate slide. That process left commercial property owners with a larger share of the local tax burden. The examples below show typical results for properties in three towns. HACKENSACK Citywide percent change: -15.7% Residential Property type: Two-story frame house Lot size: 0.15 acres 2011 assessment: $233,700 2010 assessment: $326,000 Percent change: -28.3% Commercial Property type: 12-story office building Lot size: Not available 2011 assessment: $35,631,700 2010 assessment: $39,884,800 Percent change: -10.7% RIDGEFIELD PARK Village-wide percentchange: -20.8% Residential Property type: Two-story frame house Lot size: 0.13 acres 2011 assessment: $285,900 2010 assessment: $383,000 Percent change: -25.4% Commercial Property type: auto wrecking yard Lot size: 1.7 acres 2011 assessment: $959,800 2010 assessment: $1,026,400 Percent change: -6.5% NORWOOD Borough-widepercent change: -20.3% Residential Property type: Two-story ranch house Lot size: 0.34 acres 2011 assessment: $481,000 2010 assessment: $647,900 Percent change: -25.7% Commercial Property type: One-story bank building Lot size: 0.49 2011 assessment: $1,355,700 2010 assessment: $1,431,500 Percent change: -5.3% Source: Bergen County Board of Taxation Staff analysis by Dave Sheingold |
I have altered the subject because people are asking is the tax rate went up while their assessments went down. It certainly seems so. Some residential owners with lower assessments are paying higher taxes well above 2.5% and as higher as 9% higher tax bill, even with a lower assessment... , but especially commercial properties have risen well above 3% and in some cases as high as 15%..? Am I mistaken?
It's the cities and towns that are dominated by old houses converted into 2, 3, and 4 family houses that are the biggest economic drain on the taxpayers. For instance, Asbury Park, Garfield, Paterson, Irvington, etc. Ironically, this is the type of house owned by Mr. Oratam, although his house in particular might not be putting many children into the public school system.
But if you take 100 of these houses, look at the amount of tax revenue that these houses contribute to their respective municipalities, and then look at the amount of school costs they generate, you'll see that these are negative ratables. The term negative ratable means that the costs generated to the municipality far exceed the tax revenue. Other negative ratables typically include old apartment buildings built before WWII with no parking and dangling fire escapes. And of course the ultimate negative ratable is a public housing complex because it doesn't even pay taxes at all.
Hackensack would be smart to change it's zoning so that future construction would not include negative ratables, or conversion of houses into negative ratables.