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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
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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
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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
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