February: Revaluation Program is Underway
Attention Borough residents and homeowners: the long-delayed REVALUATION is finally underway. You should be receiving an official letter from the company doing the home inspections.
Middlesex Borough has not had a revaluation in 38 years; the Borough has been working under court order to get this done. We have previously talked about the reval in this space, see articles here (Mayor’s Message: Tax Assessment Office) and here (Quarterly Newsletter Fall 2020: Tax Assessor).
For More Background, Review This Slideshow from 2019
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Read this revaluation presentation, originally given at the March 12, 2019 Council meeting. This may provide back ground information as to where value shifts could occur.
WHAT IS A REVALUATION?
A revaluation is a program undertaken by a municipality to appraise all real property within the taxing district according to its full and fair value market value.
WHAT IS MEANT BY FULL AND FAIR VALUE?
Full and fair value is the price at which the tax assessor believes a property would sell at a fair and bona fide sale by a private contract on October 1 of the pretax year..
WHY IS THERE A NEED FOR A REVALUATION?
A revaluation program seeks to spread the tax burden equitably within a municipality. Real property must be assessed at the same standard of value to ensure that every property owner is paying his or her fair share of the property tax. 1986 was the last revaluation in Middlesex.
WILL MY PROPERTY BE INSPECTED?
Yes, both the interior and exterior of each property are physically inspected, and building dimensions are noted. In addition, recent sales of properties are studied and adjusted to estimate value. Commercial property typically purchased for investment purposes, is analyzed in terms of its income-producing capability. In short, all information that influences value will be gathered, reviewed and analyzed in order to make a proper assessment of each property’s full and fair value.
Will my assessed value increase ?
Yes, your assessment will represent the full and fair market value of your property in the 2021 tax year.
Will my taxes increase?
Although revaluation will result in an increase of nearly each individual assessment, it does not mean that all property taxes will increase.
Typically after a revaluation one third of the properties experience a tax increase, one third remain the same and one third see a reduction.
Revaluations result in the discovery of previously uncaptured improvements.
New Added Assessments are added to the ratable base.
New rental incomes are capitalized at current market rates.
There is appreciation of the ratable base.
Read through the slideshow above (PDF) for additional details, or contact the Assessor’s office via email at assessor@middlesexboro-nj.gov.
Additional Information
For further information, see this “Understanding Valuations” document from Middlesex County.