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Monday, August 11, 2008

Should Plainfield revalue its properties?

Is it time for Plainfield to revalue its properties?

The amount a property owner pays in taxes is determined by the assessed value of the land and buildings (called 'improvements') and the tax rate, which is set annually by the County and based on budgets for the municipality, schools and the county.

At the time a community values its properties, the assessments are supposed to reflect actual market conditions. Plainfield's last revaluation took place in the early 1990s, and the assessments on our books (except for new construction or properties revalued because of substantive improvements) reflect those older market conditions.

Municipalities undertake revaluations at different times, and the potential exists for a town to carry an unfairly large share of the county's tax load if its assessed values are higher than other towns in the county. Counties attempt to level the playing field by assigning a multiplier value which is intended to make each town more comparable to other towns and to approximate current market conditions.

This all works reasonably well in good times, but these are not good times.

Last Thursday, the city of Paterson sued Passaic County and ten other towns in the county over this very same issue, contending that it is carrying an unduly heavy share of the county tax burden.

Because our revaluation took place over 15 years ago, Plainfield may not have the same complaint.

However, with market values depressed and unlikely to recover any time soon (many experts are suggesting a five or six year slump in prices), Plainfield's City Council might be doing Plainfield taxpayers a favor by considering revaluation under today's market conditions.

Read more about the thinking on these issues here...

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