I have already heard from several people who have had dramatic reductions in assessment since 2006. Their new numbers were 40% lower!
While most would initially think this “terrific,” at some point I believe too low an assessment will put negative pressure on home prices. After all, if you had a 2006 assessment at $800,000, but you realistically thought you could get no more than $650,000 for your home, hearing that your assessment went down 40%, to under $500,000, is sure going to make it more difficult to sell your house for $650K.
Of course, maybe I just don’t “understand” the real estate market. But then again I did check this logic out with one of my Realtor sources.
At the other end of the spectrum, I have heard of a half dozen assessments that stayed exactly the same!
Upon further investigation, I have learned that the ONLY statistic on the new reassessment is the average decline, leading to an INITIAL calculation of the new tax rate.
It turns out that the average decline is 19%, which means the tax rate needs to come up by that amount to keep everything even. Until, of course, the new budget comes out, which will have who knows what an increase.
So say the tax rate is going up about 20%.
That means the taxes on the homes whose reassessments stayed the same will go up 20%.
That’s BIG money. There are many homeowners paying $20,000 who will now have to pay $24,000. Or homeowners paying $30,000 who will now be paying $36,000.
So I am now calling for an analysis of what this reassessment means. To ALL of us.
I am disappointed that no such analysis has been done. The attitude I’ve heard is “Well, it’s just reality.”
How DO the changes affect us? Let’s see some statistics on homes of various price ranges. And let’s see some statistics based on geography.
My intent on pushing for a reassessment was for things to be FAIR. In all honesty I expected most homes to see a reduction, unless an appeal had recently been done,
I did NOT expect to see 20% increases, or 40% decreases.
And for those who think, “So what, the increases are probably only for the million dollar homes” I need to say that anything that makes Montclair less attractive to any income group hurts us all, in the end.