Livingston, NJ Tax Appeal: What homeowners need to know.

Have you heard anyone asking lately, “did your taxes go up with the new assessment?” or “are you going to attempt a tax appeal?”

The last revaluation was conducted in 2007 and the Essex County Board of Taxation has ordered another one for 2020.  The new assessment on your tax record may not change that much as home values in 2007 are fairly similar to today’s values.  That statement is taken from a 12 month trailing history study on the MLS (Multiple Listing Service) from each date:

Average Sale Price October 2019 = $705,893

Average Sale Price October 2007 = $697,776

The purpose of the revaluation is not for the municipality to collect more revenue as many people may think.  The reason is to apportion the tax burden fairly among property owners based on the fair market value.  Livingston Township is relegated to the statutory 2% limit on the annual overall tax levy and therefore, they cannot increase everyone’s taxes significantly.

Livingston is currently working with a third party, Appraisal Systems, who performed the property inspections and is working with the assessor to determine the new property assessments.

If you are interested in a Livingston tax appeal, let the representative from Appraisal Systems into your home for their inspection.  If you don’t, you will be turned away at the formal hearing and they will request to inspect your property again.

*definitions below

Once the revaluation occurs, the town’s ratio* resets to 100%.  Therefore,  no calculation is necessary to determine how the Township views your fair market value*. The new assessment* is it.

Livingston Stats

Size = 14.08 square miles

Population = approximately 31,000 people

Households = approximately 10,000

What if my home assessment is too high?

If you believe the new assessment is too high, you can appeal that value.  Ordinarily there is a law called Chapter 123 where the market value would need to prove lower than 15% of the assessed value in order to qualify for an appeal.  In a year of a revaluation only however, this does not apply as the ratio is at 100%.  For example, if you think your home is worth only 7% lower than the new assessed value, you can file an appeal.

Important dates for a Livingston tax appeal

• Filing window is January 1 – April 1, 2020
• Effective date of value is October 1 of previous year – 10/01/2019
• Comparable sales can go back to 07/01/2018 – although sales closer to the effective date are ideal
• If you obtain an appraisal, the deadline for it to be submitted is 7 days prior to a hearing date. It is not due on April 1, the filing deadline.

Helpful tips for homeowners who want to appeal – Do Not’s:

• Do not try to compare the taxes of a comparable sale or a neighbor’s property to your property
• Do not break apart the assessment with land and improvement and only fight one of them
• Do not use Zillow or a Zestimate as a data source

Don’t compare your taxes to your neighbors.  That’s not how the process works and you will not get any results that way.  You need to prove a fair market value below the new assessed value using the best comparable sales available. To get the best results for a tax appeal, hire an expert appraiser such as American Realty Appraisals.  We have expertise at hearings in Essex County and understand the process.

If you are successful in the tax appeal, the town will credit the difference between the overage you paid in quarters 1 and 2 of 2020.  The quarterly tax bill will go back to being averaged out over the four quarters for 2021 with the lowered tax amount.

Buyers of real estate in Livingston – be cautious.

There are some smart realtors who have noted on their listing comments – taxes subject to change.  I have seen properties that have been under assessed and show low taxes.  This is likely to change and could significantly affect your monthly payment.  As a buyer, make sure you are aware of a potential change in the property taxes.

We have saved our clients hundreds of thousands of dollars in annual residential real estate taxes.  We have experience appealing against Appraisal Systems in the past in towns such as Millburn and South Orange and understand their process.  Let us know if we can help to lower your real estate taxes.

Call American Realty Appraisals at 908-233-1337 for your Livingston tax appeal needs.

*Definitions:

Ratio –The township uses an average ratio which is a fractional relationship to the assessed value to calculate what they believe to be the property’s true market value.  This number changes on an annual basis.

Fair market value – The current value of your home if it were on the open market in a transaction between a willing buyer and seller not under duress.

Assessed value – The value given for a particular property from the township as of the last township valuation.  This number is typically broken down with a land and improvement value and is used to determine property taxes.