Reassessment - Property tax

Cramer:  The revaluation is scheduled for 2017.   OP is referring to a reassessment which is different.  Maplewood real property tax payers recently received written notification of the assessed value of their property for 2016.  Since OP does not indicate whether the increase in real property assessment is based on a comparison with the 2015 notification of assessed value or some other document, it is impossible to tell the basis for the claim of a 40% increase over the prior year.

Again the assessment from 2015 to 2016 shouldn't have changed unless you did some improvement... everybody is mentioning the relative change in your assessment vs you neighbors, well if the neighbors haven't changed and yours assessment is up 6%, your taxes will go up at least the 6%

joan_crystal said:

Cramer:  The revaluation is scheduled for 2017.   OP is referring to a reassessment which is different.  Maplewood real property tax payers recently received written notification of the assessed value of their property for 2016.  Since OP does not indicate whether the increase in real property assessment is based on a comparison with the 2015 notification of assessed value or some other document, it is impossible to tell the basis for the claim of a 40% increase over the prior year.

Joan - Actually, it's a reassessment, not a revaluation,  which is going to be conducted by both towns which will be effective Jan. 1, 2017, although there will be in-home inspections. The purpose of the in-home inspections is to see if any work was done without a permit where one was required. You may want to call the Maplewood tax assessor or a TC member to confirm this.  

There are many homes on the market right now, that have clearly had major overhauls and have very low  taxes in relation to their neighbors. You know if you purchase it your taxes are going to go up significantly next year.

mikescott said:

max_weisenfeld said:

Is it possible the previous owners did work and closed the permits in 2015?

Very likely.  

ArchBroad said:

There are many homes on the market right now, that have clearly had major overhauls and have very low  taxes in relation to their neighbors. You know if you purchase it your taxes are going to go up significantly next year.

mikescott said:

max_weisenfeld said:

Is it possible the previous owners did work and closed the permits in 2015?

Very likely.  

You should know, but for many buyers, especially first-time homeowners, the ins and outs of property taxes are a new country.  If someone doesn't tell them, they would not know to ask.

Another thought comes to me.  The vocabulary here is pretty specific.  While the OP does seem to know the difference, just to be sure, is it the assessment that went up 40%, or the quarterly tax bill?

THIS IS IMPORTANT:

Was the house you bought a "flip".    Did the previous owners do extensive work in order to sell - new kitchen, baths, finish an attic or basement.  If that was the case, then yes, the town could very well re-assess, based on the improvements.   It doesn't happen often but it does happen.   It happened to clients of mine.  I mistakenly thought that since no square footage had been added the assessment would stay the same - but that was not the case.    Still, 40% sounds like a lot.   I would certainly make a call to the assessor and consider an appeal.

Question--if bathrooms are updated in such a way that the work did not require a permit (no alternation in plumbing configuration, etc...), can that contribute to an increased assessment?  Other than permits filed, how does the town know that such improvements were made?

cmarym said:

Question--if bathrooms are updated in such a way that the work did not require a permit (no alternation in plumbing configuration, etc...), can that contribute to an increased assessment?  Other than permits filed, how does the town know that such improvements were made?

I'm assuming you're asking for a friend?

OP states that neither he nor the prior owners had done any work to the house requiring permits in the last few years.

Sorry--I dashed that off and was not very clear.  I am curious about how what factors go into an increase in the assessed value, based on improvements and my question was not directly related to the OPs (didn't mean to hijack the thread, but am also new to this and trying to sort it all out). I guess my question is whether bathroom improvements that do not require a permit (things that fall under "ordinary plumbing maintenance") contribute to increasing the assessed value of a property.  

ridski said:

cmarym said:

Question--if bathrooms are updated in such a way that the work did not require a permit (no alternation in plumbing configuration, etc...), can that contribute to an increased assessment?  Other than permits filed, how does the town know that such improvements were made?

I'm assuming you're asking for a friend?

cmarym said:

Question--if bathrooms are updated in such a way that the work did not require a permit (no alternation in plumbing configuration, etc...), can that contribute to an increased assessment?  Other than permits filed, how does the town know that such improvements were made?

Yes.  they're listed as O A or M.  They don't look at the wiring to determine that.  however, without a permit, hard to see how the town would know about an O or A bath turning into an M unless and until an in home inspection in connection with a revaluation.  

Good news is some Ms are not as nice as other Ms, but the relative increase in assessment is probably the same for both, so there's that.  

cmarym said:

Sorry--I dashed that off and was not very clear.  I am curious about how what factors go into an increase in the assessed value, based on improvements and my question was not directly related to the OPs (didn't mean to hijack the thread, but am also new to this and trying to sort it all out). I guess my question is whether bathroom improvements that do not require a permit (things that fall under "ordinary plumbing maintenance") contribute to increasing the assessed value of a property.  

ridski said:

cmarym said:

Question--if bathrooms are updated in such a way that the work did not require a permit (no alternation in plumbing configuration, etc...), can that contribute to an increased assessment?  Other than permits filed, how does the town know that such improvements were made?

I'm assuming you're asking for a friend?

Best person to ask would be the tax assessor.  In my experience the answer is no, that improvements not requiring permits would not merit an immediate increase in assessment. 

However when the town does a re-valuation or re-assessment in which  the properties are inspected (Maplewood/South Orange have one coming up) condition will make a difference. I believe they have three designations - above average, average, and below average.  If the inspector's perception of the condition is changed by your improvements then yes, your assessment will go up.

sarahzm - I don't think that in a reassessment the inspector makes a determination about the condition of a property. This is the big difference between a revaluation and a reassessment, and is the reason that a reassessment costs less than a revaluation. In a revaluation, the inspector does make an evaluation about the condition of the property. 

In the upcoming reassessment, the appraisal co. works just with the property cards, including any work for which permits have been issued  and which are reflected on the property cards. The purpose of the in-house inspection is to make sure that no work has been done which should have permitted. 

It's really no different than the reassessment that we had in South Orange a few years ago, with the added procedure of the in-house inspection. I guess that the reverse of that is true - if something  has happened to a house which decreases its value, such as a flooded basement that ruined a finished basement, that would be taken into account as well.

What do people do if they can no longer afford their taxes if they are raised one year?

What does the town do if taxes are owed on a home?

Do they repossess the home?

A tax lien can be placed on the home if taxes aren't paid in full.  

So, what is the difference between a reassessment and a revaluation?  I thought it was the same thing.

SAC -- cramer explains above -- but the end result is the same.  some pay more, some play less and others pay about the same.

mikescott said:

SAC -- cramer explains above -- but the end result is the same.  some pay more, some play less and others pay about the same.

Thanks.  For some reason, I didn't see that post before I posted my question.

I've said that the purpose of having an interior inspection is to make sure that no improvements have been made without a permit which should have been permitted. To be clear, I've never heard a South Orange official say this. I'm basing it on a conversation that I had many years ago with the mayor of a shore town where we had a house, in which he told me that he had wanted an inside inspection in connection with an reassessment then being done, for the reason that I've stated, but the city council would not agree. This is the only reason that I can come up for the interior inspection. In that reassessment, the inspectors made an exterior inspection of the properties, which of course cost less.  

I did find this explanation by the Essex Co. Tax Board of the difference between a reassessment and a revaluation. Although it is not mentioned, I believe that our reassessment is a hybrid reassessment where an outside appraisal co. makes an interior investigation and works with the tax assessors.

http://essextaxboard.com/revaluations.html

cramer said:

I've said that the purpose of having an interior inspection is to make sure that no improvements have been made without a permit which should have been permitted. To be clear, I've never heard a South Orange official say this. I'm basing it on a conversation that I had many years ago with the mayor of a shore town where we had a house, in which he told me that he had wanted an inside inspection in connection with an reassessment then being done, for the reason that I've stated, but the city council would not agree. This is the only reason that I can come up for the interior inspection. In that reassessment, the inspectors made an exterior inspection of the properties, which of course cost less.  

I think it's also to confirm that the cards do in fact have the correct information (BR, Baths, etc).  I've heard of people having missing bedrooms or vice versa, found and corrected after the fact via the walkthrough.

Thanks!

So they're coming into houses again?  They were in my house six years ago, I thought they did this every ten years?

inflation.

State mandate that Maplewood and SO do their reassessment at the same time due to concerns regarding proportionate responsibility of each town for funding the shared school district.