Property Tax Appeal Q&A
Q: How long does the whole process take on average from mailing out the forms till approval?
A: The appeals are reviewed from building to building, so it depends on where your building falls in the review list. My building got reviewed in early June, and settlement offer letters were in the mail by the second week. You have to sign
and send them back to accept the offer. You have until August to accept a settlement before having to go to court.
If you win your appeal, the new lower assessment is retroactive back to January 1, so don’t worry about the timing of your appeal review. You can call the tax assessor’s office to find out your status at the end of April. In Hoboken the assessor is SAL A BONACCORSI at 201 420-2024.
Q: You have an assessment ratio on your blog but where did you get that from?
A: The 0.2716 is the current Hoboken tax ratio. More info at http://bit.ly/dfWh8n
Q: If I win my appeal, will I get a check in the mail?
A: No. The amount of your reduced assessment will be credited toward your next property tax bill, usually the third quarter. Make sure to contact your lender so you can lower your monthly escrow payment.
Q: I got a huge amount off my taxes last year when I appealed. Should I appeal this year?
A: Not unless your property is overassessed by more than 30%. Zillow gives a pretty good property value estimate, check it out to see whether you are still overassessed.
Q: If I hire an attorney, will I have to pay upfront?
A: In most cases, no. The attorneys represent property tax appeal clients on a contingency basis, which means they won’t bill you until after you get a credit on your property tax bill. If your appeal gets denied, you are typically responsible only for the $25 filing fee ($100 for properties assessed at over $500,000). Keep in mind that tax appeal attorneys only accept clients they are sure can get a reduction, so you might be paying a lot extra for unnecessary professional representation. There is usually an additional fee for going to court.
Q: The state documents for property tax appeals keep talking about appraisals. Do I need one?
A: No. They are talking about the assessed value, not an actual appraisal. If you happen to have one lying around from a recent refi, it can’t hurt if you have to go to court, but 70% of all appeals get settled before they get to court. The municipal assessor has a formula they use to determine whether to settle (ie. your property is assessed for more than 30% of the current market value, so they offer 10% off).
Property appraisals typically cost several hundred dollars, so they are not a standard part of a property tax appeal for attorney-filed appeals either.
Q: I bought my property in January. Can I file my appeal in my name?
A: No. Tax appeal credits are retroactive back to Jan 1, so you have to file in the name of the owner of record as of that date. You can still sign your name (ie. “Jane Doe for Prior Owner”). And the refund will get credited against your next property tax bill (usually third quarter) so no need to worry about receiving a check made out to the wrong name!
