How can my assessment increase and my taxes not go up?

Remember that assessments are merely a base used to apportion the tax burden. The tax burden is the amount that must be raised for the operation of the local and county government and the local school system.

Let us assume that the amount a municipality must raise from property taxes is $10 million. Assume also that the total of all assessments in that municipality is $200 million. In this example, a municipality would have a tax rate of $5 per hundred:

Amount to Be Raised from Property Taxes
Total of Assessments
= Tax Rate
$10 million
$200 million
.05 or $5.00 Per Hundred Dollars of Assessed Value

If the $200 million total of all assessments, on average, represents 50% of the true value of all real property in the municipality, property owners whose assessments reflect more than 50% of true value would be paying an unfair share of the burden. Conversely, property owners whose assessments reflect less than 50% of true value would not be paying their fair share of the burden.

Now, let us assume that in this same year, a revaluation was put into effect and the aggregate assessed value is now $400 million:

Amount to Be Raised from Property TaxesTotal of Assessments= Tax Rate
$10 Million$400 Million.025 or $2.50 Per Dollars of Assessed Value

Raising the assessments to true value does not affect the amount to be raised by taxes. That is determined independently through the budget process. A revaluation does not raise revenue. It is revenue-neutral.

Show All Answers

1. Will the Borough of Point Pleasant Beach gain more tax dollars as a result of the revaluation?
2. What is a revaluation?
3. Is this revaluation program voluntary?
4. What is meant by “full and fair value”?
5. What has to be done during a revaluation program?
6. What if I am not home when they come to do the inspection?
7. Will a revaluation increase taxes?
8. How can my assessment increase and my taxes not go up?
9. Then why do a revaluation?
10. Will taxpayers be informed of their proposed assessment?
11. What the taxpayer is dissatisfied with the proposed assessment?
12. What can a taxpayer do if he / she is unsuccessful in having the valuation of his / her property revised as a result of attending the informal hearing?
13. How can I estimate the fair market value of my property?
14. How can property owners help to make the process more efficient?
15. What determines how my property will be valued?