A Flood Of Tax Appeals: How Will It Affect Montclair?

The numbers tell the story: In 2009, 830 tax appeals were filed by Montclair residents to the county and the state. As a result of the appeals, the municipality had to fork over $1.3 million last year in overpaid taxes.

By the April deadline this year, some 1,225 tax appeals had been filed, putting the ball in motion for even heftier tax rebates for 2010.

This is the backdrop adding even more drama to an already contentious ongoing debate over Mayor Jerry Fried's proposed $69.9 million budget, which would spark a 6 percent property tax hike.

One reason Montclair is in such dire financial shape is that its general revenue is projected to drop this year by 17 percent, from $18.9 million to $15.7 million, partly because of the growing number of tax appeals. Indeed, not only do tax appeals generally result in less revenue coming in, but also the Township must now reserve $300,000 to pay for tax appeals, double what it reserved last year.

As a result of the financial turmoil, many have suggested that it might be time for an across-the-board property reassessment in the near future.

"We're looking at reassement now," Township Manager Marc D. Dashield told Patch. "We're talking to the tax attorney."

Dashield said reassessment would make the property tax scene a fairer one, adding that tax appeals place a heavier burden on those who don't appeal.

Councilor Cary Africk has contacted Dashield to ask that the Township begin the necessary work required to perform a town-wide reassessment.

He's asked that a resolution be placed on the agenda for the next meeting of the Township Council.

Dashield said a reassessment would be simpler than a revaluation - last performed in 2007 - and much of the work could be done with existing data. A reassessment might in the long run save the town money by cutting down on the number of tax appeals being filed.

"I think they should do a reassessment now in 2010 with the values of today in order to be fair," said Joseph Downey, owner of JWD Tax Services, in Flanders, New Jersey.

According to the Essex County Board of Taxation, any reassessment would have to include a review of at least 80 percent of Township properties and a revision of at least 50 percent of the properties' value.

The county board would have to approve any request from Montclair for a reassessment.

Downey added that refinancing might be the only weapon a homeowner has - particularly if on a fixed income - when their property tax increases.

The deadline for filing tax appeals in Montclair is April 1 each year.