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HomeMy Public PortalAboutr 13-060r � N� o the .t7diTk1 �� IIf �LLarfii rd, No. Dalc of Adoptio QSa' l 1,1, 2m RESOLUTION SUPPORTING 5- 1396/A -1503 SHARING THE BURDEN OF PROPERTY ASSESSMENT APPEAL REFUNDS WHEREAS, when Cranny Tax Board appeals are granted the municipality must reimburse the property taxpayer 100% of the appealed tar levy, which includes the municipal, school, county and any special districts tax; and WHEREAS, the municipal tax collector makes the adjustment from the appeal as a credit on the 4 quarter tax bill resulting in the municipality's fund balance for the preceding year to diminished , if not completely depleted; and WHEREAS, a League of Municipalities' survey measured the extent to which residents have filed and won tax appeals in 2010; and WHEREAS, one hundred fifty (150) municipalities, representing both large and small municipalities in all 21 counties, that participated in the survey reported property value declines of more than $37,900,000, which resulted from 19,733 tax appeals filed in 2010; and WHEREAS, those responding to the survey indicated that 13,760 appeals were filed in 43 2009, compared to 19,733 in 2010, representing an increase of .7 %; and WHEREAS, a municipality often experiences an increase in tax appeals because it has conducted a revaluation, however, only 5 of the ISO municipalities, which participated in our survey, indicated that their 2010 appeals resulted from revaluations; and WHEREAS, as a way of comparison, 23 of the participating municipalities conducted revaluations in 2009, when fewer tax appeals were presented to the County Tax Boards; and WHEREAS, the 2010 spike in appeals should be attributed to the economic down -turn, which lowered property values and placed increased stress on the income of homeowners, all around our Garden State; and WHEREAS, the survey also indicated that in 2010 the various County Tax Boards have granted average property value reductions of close to $5,000, per appeal; and WHEREAS, fifty -six percent of those responding indicated that the successful tax appeals would have an impact on fund balances and place additional pressures on local officials during 2011; and WHEREAS, the reductions, which were granted by County Tax Boards in 2010, likely had a multiplier in subsequent years when neighbors learned of their neighbor's tax reduction; and WHEREAS, successful tax appeals have a duce -fold negative impact on municipal budgets. First; the municipality, as the collector of taxes for the School district, county and special districts, must fund the full cost of the legal defense of the assessment. Second, since State law guarantees to the county and the school district 100% of their levies, the municipality bears the fill] cost of any re- imbursements resulting from the appeal (as well as the full burden for any uncollected taxes). Third, the end result will be a fiuther decline in tite property tax base used to support Municipalities, County governments and School systems; and �i�_ PAGE 2 WHEREAS, in light of the revenue limitations that have been placed on all levels of local government by the Legislature (2% cap), such declining values will compound and add additional stress to local public officials, as they grapple with the issues confronting the taxpaying public; and WHEREAS, Senator Bucco, Assemblyman Carroll and Assemblyman Bucco have recently introduced S- 1896/A -1503, which requires fire districts, school districts, and county governments to share in burden of property assessment appeal refunds; NOW, THEREFORE, BE IT RESOLVED, by the Mayor and Council of the Borough of Carteret hereby urge the swift passage and signing of S- 1896/A -1503; and BE IT FURTHER RESOLVED, that copies of this Resolution be forwarded to New Jersey Governor Christopher Christie, to Senate President Stephen Sweeney, to Assembly Speaker Sheila Oliver, to State Senator Joseph F. Vitale, to Assemblymen Craig J. Coughlin, John S. Wisniewski, and to the New Jersey League of Municipalities. Adopted this 11 "' day of April, 2013 and certified as a true copy of the original on April 12, 2013, KATHLEEN M. BARNEY, NhMC Municipal Clerk RECORD OF COUNCIL VOTE COUNCIL \IAN ( YES NO NV — B - -j YES NO NV A, g, 10— DUASUO X X - Indicate Vote An - Absent NV - Not Voting XOR - Indicmes Vote to overrule Veto Adopted at a meeting of the Municipal Council 111, 2113 t L1,KK