Revaluation - A letter was previously mailed, if you did not receive it, there is a copy on the website link. http://asinj.com/revaluation.asp Also a representative of the company spoke at a Council meeting to explain the process.
Revaluation - As ordered by the Sussex County Board of Taxation and reviewed by the State Division of Taxation, Hopatcong Borough is having a Revaluation, whereby all taxable real estate will be revalued for the 2024 tax year. The purpose is to ensure uniform and equitable assessments. The Borough has entered into a contract with Appraisal Systems, Inc . to conduct the revaluation program. The process has begun and inspections will be conducted in 2023. You can find more information on Appraisal Systems website.
***The inspector’s information, including their car and their picture will be on Appraisal Systems website and the area they will be in town. This information gets updated if inspectors are added and as they move through the Borough. You should verify the identity of the inspector from their website.
There will be an opportunity in January to review your assessment with Appraisal Systems before it is final on the 2024 tax book. This is a great opportunity to review for errors, along with opportunity to discuss any issues with your property. If you still disagree with the final 2024 value, you will have opportunity to appeal your new assessment, after the January book but before the May 1 tax appeal filing deadline in Revaluation year. Applications to appeal can be obtained from the Sussex County Tax Board 973-579-0970.
Check back on Appraisal Systems website in January for a projected tax rate spreadsheet that can be utilized to see the potential impact of taxes.
For further explanation, the following definition of a Revaluation program is described in the "Handbook for New Jersey Assessors.”
"A revaluation program seeks to spread the tax burden equitably within a taxing district by appraising each property according to its true value and assessing it based on such value. This is accomplished by the mass appraisal of all real property in the taxing district by an outside professional appraisal or revaluation firm. A revaluation program includes a contract between the firm and the municipality. The contract must be approved by the Director of the Division of Taxation, and both the contract and revaluation firm must meet certain standards which have been established and set forth by the Director in a body of regulations. The revaluation contract is also subject to review by the county board of taxation who may make written recommendations to the Director."
"The need for revaluation may be demonstrated by any evidence which indicates that properties within the taxing district are not assessed at the same rate of true value. One of the best sources of information is the assessment-sales ratio data gathered in the equalization program for the distribution of State school aid. An individual assessment-sales ratio is found by dividing the assessment on a property by the amount for which the property has been sold, and expressing the result as a percentage. For example, a property assessed for $40,000, which is sold for
$50,000, would be said to have an 80 per cent assessment -sales ratio. If the individual assessment-sales ratios vary widely, a revaluation program definitely is needed."
The Gathering of Information
There are three different methods of estimating market value.
- The Sales Comparison method compares a property with similar properties that have recently sold in the same or similar neighborhoods. All properties for which there are a sufficient number of reasonably comparable sales will be valued using this method.
- The Replacement Cost method estimates what it would cost at current local prices for construction material and labor to replace the building. Depreciation and obsolescence are subtracted to reach net value for the buildings, and then the value of the land is added to reach a market value for the property. Every property will also be valued using the Cost approach.
- The Capitalization of Income method is used primarily for commercial and apartment properties. This method estimates the predictable net rental income after expenses are deducted that would be generated for the property and then determines the market value on the basis of what a prudent investor would pay for such a property.
Informal Public Hearing (January)
Numbers are finalized and put on 2024 book by January 10th
*POSSIBLE EXTENSION REQUEST*
Taxpayers will still have an opportunity to appeal the new valuation by May 1st in a Revaluation year.