HOLMDEL, NJ - Holmdel Township recently released the 'Top 10 Questions Concerning the 2020 Property Reassessment & Impact on Property Taxes" - The FAQ is below:
1. My assessment DOES reflect the fair market value, but my taxes are too high. Why?
Please be mindful that the assessment function is focused on the uniformity and accuracy of the assessments NOT the resulting tax responsibility. When the assessments are set to the same standard (market value) in a uniform way, the tax levy will be distributed fairly municipal and county wide in accordance with the NJ Constitution.
The Tax Assessor does not have control of the tax levy. County, municipal and school budget costs determine the amount of property tax to be collected. A municipality’s general tax rate is calculated by dividing the total dollar amount it needs to meet local budget expenses by the net valuation of all its taxable property. An individual’s property taxes are directly correlated to that property’s proportionate share ownership of the municipality. To put it simply, if a property was worth 5% of the municipality, it would be assigned to pay 5% of the tax levy.
2. How is the Tax Rate Calculated?
The tax rate is calculated by dividing the total tax levy by the net valuation of the Township (total of all assessments). Each property then pays taxes based off that rate times their assessment so that the tax levy is distributed fairly.
3. Why are my 3rd and 4th quarter bills different from my 1st and 2nd?
Since the annual tax rate is not certified by the state and the county until the middle of the tax year, the first and second quarter bills are always just estimations. Once the tax rate is certified, the tax collector multiplies your assessment by the certified rate. The collector then reduces the total amount due by any payments that were made in the first and second quarters. The balance is then split between the third and fourth quarters. Basically, any annual tax change is back loaded to the final two quarters of the year.
As an example, if your property taxes changed from $16,000 to $16,500. The quarterly breakdown would be:
1st quarter: $4,000 2nd quarter: $4,000 3rd quarter: $4,250 4th quarter: $4,250
4. I understand that we are reassessing every year, does that mean my assessment will change for next year?
Yes. Every year the market will be analyzed to ensure fair distribution of the tax levy. Monmouth County is engaged in the Assessment Demonstration Program (ADP). The overarching intent of the Assessment Demonstration Program (ADP) is to institute a revised assessment function that provides systemic cost savings and enhanced public service. At the core of the program is the ability to establish and annually maintain individual property assessments at 100% of current market value. This is accomplished by the County and the towns working collaboratively to employ enhanced education, advanced appraisal techniques and modern technology. The fundamental goal of the ADP is to ensure that each taxpayer pays their fair share of the annual tax levy (no more or no less).
5. If my assessment goes up, does that mean I will pay even MORE taxes?
Not necessarily. The assessment function does not create revenue for the municipality. The Assessment function is only a distribution mechanism of the separately determined tax levy. In strict adherence with the NJ Constitution, this apportionment is to be based on the value of property.
6. My house was recently inspected. What was the purpose of that inspection?
The purpose of the inspection is to gather proper information on each property so that the appraisal process (and resulting tax distribution) is fair and uniform. Please note: the inspectors are not appraisers and are not appraising your home. The inspectors are simply data collectors and return the data to this office where the reassessment process is done. The Division of Taxation requires that an inspection is done every five to eight years on each property.
7. I was not home for the inspection. What should I do?
If the inspector did not gain access to the interior of your property, they likely estimated the interior room counts and conditions. You should contact the assessor’s office (firstname.lastname@example.org or email@example.com) and request a copy of your Property Record Card (PRC) to be sure that all of the physical characteristics listed on the record are accurate. If you find any issues on the PRC, you should consult with the assessor immediately to determine what remedies are available.
8. How is the appraisal process done?
After the inspection data was returned to this office, the Assessor reviews all recent sales data and synchronizes the mass appraisal modeling in each market and submarket to target current market value. When the assessments are set to the same standard (market value) in a uniform way, the tax levy will be distributed fairly. Remember, the assessment function is focused on the uniformity and accuracy of the assessments NOT the resulting tax responsibility.