For the past several years, there have been minimal tax increases in Monroe Township. However, business administrator Wayne Hamilton says that’s about to change with an average increase this year of $393 for a $160,000 home.
The reason for the tax hike, says Hamilton, is that for the past three years, there have been 3000 tax appeals, representing about one third of the properties in town. This adds up to $11.4 million in refunds and credits to taxpayers.
Although there were 618 new homes occupied during the same time period, the township’s total assessed valuation has declined $140 million over the past two years. Add to that cuts to state aid to the town and schools, the result Hamilton says is catastrophic.
“Everything that could happen in terms of the other revenue side portion of the balance sheet was being impacted tremendously and it forced us into a year where essentially our cash balances had diminished,” he explained. The end result is a tax rate adjustment.
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Other New Jersey municipalities have been inundated with tax appeals in recent years. Last year, more than 80,000 homeowners and businesses filed appeals which is about four times the amount filed in 2007. But what had exacerbated the problem in Monroe Township was that many of the town’s adult communities filed bulk tax appeals.
Town officials say they’ve taken steps to reign in spending since 2009. The town has eliminated more than ten full-time positions and officials say they saved more than $1 million by reducing employee health premiums. But for some taxpayers, this sounds like too little, too late.
Resident Carol Speert said she burst into tears when she saw her tax bill. “I just couldn’t believe it. Trying to make ends meet now is crazy,” she said.
Hamilton sympathizes, saying “it’s a difficult explanation to say ‘[because] you didn’t have the savvy or foresight to file a tax appeal whereas your neighbors did, you’re paying in essence for the refunds and credits that your neighbors got.'”
It’s likely more property owners will file tax appeals but the tax base is expected to increase here in the future because several new development projects are planned in town and township-wide reevaluation is underway. It will go into effect in 2014.
Desirée Taylor files this report from Monroe Township.