More and more, tax appeals have become an issue with municipalities, and Roselle Park is no exception. So far this year, $236,527.80 has had to be paid out in the form of a refund check or reduction in tax dues. The latest, and so far largest, round of awarded tax appeals was in the form of Resolution 198-11, which listed 49 properties that successfully filed tax appeals, totaling $153,310.50. That amount was paid from the municipality’s budget – which comes from taxpayers – to those property owners in the form of a final tax quarter bill adjustment.
Among those residents and businesses was Mayor Emeritus Joseph DeIorio.
“I did not file a tax appeal or receive a tax appeal as former Mayor,” Joseph DeIorio stated when asked why he, as the former mayor and current property owner, filed for the appeal which resulted in the lowering of his property taxes by $754.93, “Myself and Thos Shipley, as current property owners, filed a tax appeal based on the laws of the State of New Jersey, because our recent purchase of our home in February of 2010 was less than the assessed value brought to market value on our home. This situation occurred with many others in our community.”
The Mayor Emeritus went on to describe how property taxes – which pay for municipal, school, and county services – are determined in New Jersey through the assessed value of the property (land) and the assessed value of improvements. He stated that the assessed value of improvements is determined as a percentage of market value and as market values change, the percentage or ratio to market value also changes. When extreme changes to the market occur as a result of higher or lower local sales prices, inequities in assessments to other property owners may take place, thereby creating some property owners paying more than what he termed as their ‘fair share’ for local services.
Mr. DeIorio’s property on Larch Street, which was purchased for $265,050 had a 2010 assessment of $76,300 with the 2010 average ratio of 23.46%; this after the property assessment had already been reduced by $10,000 from $86,300 in 2009. The average ratio is used to find the proper assessment after the Union County Tax Court Judge determines the market value.
Mr. DeIorio and Mr. Shipley filed out their tax appeal forms and submitted them to the County Tax Court and Assessor requesting an assessment of $62,180 based on information which used their newly purchased home as the best indicator of current market value plus a listing of comparable sales with like-kind homes in similar neighborhoods.
Upon review of their filed appeal, the municipal tax assessor, Paul Endler, suggested a reduction to $70,000 of assessed value – $7,820 higher than Mr. DeIorio and Mr. Shipley’s assessment. In the end, the property owners settled for that amount rather than incurring the time and expense of appearing for a hearing before the county Tax Court judge.
“Although the assessment is still above what we feel is more that the market value of our home and therefore paying a higher disproportionate amount in taxes, it is still within range and acceptable to us at this time,” Mr. DeIorio remarked.
Mr. DeIorio, who also owns a condominium in town did not file file a tax appeal on that property, which could be determined – based on the average ratio used – would not have been successful in a reduction of property taxes for the Mayor Emeritus.
The total amount of the tax appeals filed for resolution 198-11, $153,310.50 actually comes out to a total burden increase of $259,370.70 for the remaining taxpayers since although the tax appeal is a reduction of the property owner’s total property tax, the municipality is still responsible to pay the full amount of the school, county, open space, and library portions of the tax levy. In this case, an additional $106,060.20 will need to be used to make up for the proportional amount no longer being paid by those who successfully filed a tax appeal.
In the Mayor Emeritus’ case, it is an additional $522.26 over the $754.93 which will have to be paid by the municipality by way of the remaining borough taxpayers to make up for the proportional share that remained for the county, open space, schools, and library after Mr. DeIorio was awarded his tax appeal. With the success of his tax appeal, Mr. DeIorio will be proportionally paying around $9 less in taxes for the Library, where he sits on the Library Board of Trustees as the financial officer.
Along with Mr. DeIorio, Mary Leonard – who is employed as the Borough’s Assistant Treasurer/Bookkeeper – and Julius Robaina – who sits on the Municipal Land Use Board (MLUB) – both filed successful tax appeals under resolution 198-11.
With the governing body approving $12,500.00 the services of a tax appeal attorney, the municipality has paid out $249,027.80 – almost a quarter of a million dollars – to address tax appeals. The major reason for the increase in appeals has to do with the borough not having a townwide revaluation conducted in decades to bring property taxes in-line across the board. Some on council have favored an assessment while others feel it will disproportionately affect seniors who are on a fixed income. In addition to the estimated cost of revaluation (around $300,000), there is the risk that a number of voters will have their property taxes go up after the assessment/evaluation and, in turn, will hold the elected official who approved a revaluation responsible.
But if a townwide revaluation is not performed, tax appeals will continue and the cost to the taxpayers will increase. This will, in turn, mean that either services and/or labor will be cut in order to pay for salaries or equipment because there will be less money from those who successfully file a tax appeal and a cap on spending put in place by the State.
For a complete list of properties that were awarded a refund/reduction in taxes in Resolution 198-11, please view the table below:
| Block | Lot | Address | Name | Original Assessment | Judgment Assessment | Reduced Assessment | Reduced Amount |
|---|---|---|---|---|---|---|---|
| 109 | 5 | 621 Faitoute Avenue | Perdigoto & Coutinho-Jordao | $71,400.00 | $60,000.00 | $11,400.00 | $1,366.06 |
| 113 | 2 | 605 Chester Avenue | Wolkowicki, Jenny | $72,700.00 | $60,000.00 | $12,700.00 | $1,521.84 |
| 113 | 19 | 600 Laurel Avenue | Robaina, Julio | $80,000.00 | $62,500.00 | $17,500.00 | $2,097.03 |
| 123 | 6 | 440 W. Lincoln Avenue | Toro, Maricel | $89,900.00 | $80,000.00 | $9,900.00 | $1,186.32 |
| 127 | 4 | 517 Myrtle Avenue | Riccio, Francis | $88,700.00 | $78,700.00 | $10,000.00 | $1,198.30 |
| 208 | 15 | 432 W. Webster Avenue | Bonavitacola, E & M | $105,100.00 | $90,000.00 | $15,100.00 | $1,809.43 |
| 208 | 27.01 | 406 Maplewood Avenue | DeGregorio, Blanca & Phil | $112,000.00 | $100,000.00 | $12,000.00 | $1,437.96 |
| 210 | 6 | 426-428 Seaton Avenue | Pavese, Susan | $168,000.00 | $130,000.00 | $38,000.00 | $4,553.54 |
| 307 | 13 | 301 W. Clay Avenue | Martino, LLC | $148,200.00 | $117,300.00 | $30,900.00 | $3,702.75 |
| 308 | 4 | 277 W. Clay Avenue | Parusso Realty, LLC | $123,000.00 | $103,000.00 | $20,000.00 | $2,396.60 |
| 311 | 19.01 | 264 W. Clay Avenue | Feliciano, Awilda | $93,600.00 | $88,600.00 | $5,000.00 | $599.15 |
| 312 | 5 | 235 Hawthorne Street | Kurtzo, Stephen | $59,300.00 | $50,000.00 | $9,300.00 | $1,114.42 |
| 313 | 3 | 123 Hawthorne Street | Hawthorne Court, LLC | $94,500.00 | $84,500.00 | $10,000.00 | $1,198.30 |
| 401 | 2.11C | 7-C Colfax Manor | Ciuba, J & K | $37,500.00 | $30,700.00 | $6,800.00 | $814.84 |
| 402 | 11 | 824 Larch Street | DeIorio, Joseph & Shipley, Thos | $76,300.00 | $70,000.00 | $6,300.00 | $754.93 |
| 407 | 10 | 820 Chestnut Street | Bucci, Michael | $118,800.00 | $100,000.00 | $18,800.00 | $2,252.80 |
| 409 | 11.03 | 708 Pine Street | Lissade, Peter & Mireille | $108,400.00 | $100,000.00 | $8,400.00 | $1,006.57 |
| 423 | 21 | 504 Laurel Avenue | Leonard, Mary | $82,100.00 | $77,100.00 | $5,000.00 | $599.15 |
| 503 | 2 | 58 W. Lincoln Avenue | Lobello, James | $70,000.00 | $63,000.00 | $7,000.00 | $838.81 |
| 506 | 2 | 138 W. Webster Avenue | JGH Realty | $70,500.00 | $55,500.00 | $15,000.00 | $1,797.45 |
| 506 | 3 | 130 W. Webster Avenue | JGH Realty | $123,500.00 | $83,500.00 | $40,000.00 | $4,793.20 |
| 506 | 4 | 120 W. Webster Avenue | JGH Realty | $188,600.00 | $118,600.00 | $70,000.00 | $8,388.10 |
| 513 | 13 | 310 Chestnut Street | Couto, Candido | $73,000.00 | $63,000.00 | $10,000.00 | $1,198.30 |
| 514 | 6 | 427 Chester Avenue | Gramer, Brandon, & Stephan, W. | $62,000.00 | $55,000.00 | $7,000.00 | $838.81 |
| 602 | 27 | 125 Butler Avenue | Gonzales, Javier | $67,800.00 | $57,800.00 | $10,000.00 | $1,198.30 |
| 604 | 21 | 210 Filbert Street | Kolbeck, Kevin & Joann | $117,000.00 | $100,000.00 | $17,000.00 | $2,037.11 |
| 610 | 3 | 307 Westfield Avenue | NJ Redevelopers LLC | $1,061,500.00 | $461,500.00 | $600,000.00 | $71,898.00 |
| 702 | 4.01 | 825 Walnut Street | Stamboly, Ronald | $122,100.00 | $112,100.00 | $10,000.00 | $1,198.30 |
| 702 | 4.02 | 829 Walnut Street | Villani, Gina M. | $126,000.00 | $116,000.00 | $10,000.00 | $1,198.30 |
| 702 | 4.03 | 831 Walnut Street | Villani, Joseph | $126,000.00 | $116,000.00 | $10,000.00 | $1,198.30 |
| 704 | 6 | 836 Galloping Hill Road | Olivo, Anna & Jose | $101,600.00 | $90,000.00 | $11,600.00 | $1,390.03 |
| 705 | 14 | 700 Hamilton Place | Yerovi, Jose & Magleny | $91,300.00 | $80,000.00 | $11,300.00 | $1,354.08 |
| 707 | 15 | 144 E. Roselle Avenue | Benitez, Jorge | $83,600.00 | $72,000.00 | $11,600.00 | $1,390.03 |
| 709 | 9 | 257 Lehigh Avenue | Kamienski, Michael | $103,700.00 | $93,700.00 | $10,000.00 | $1,198.30 |
| 808 | 15 | 217 E. Clay Avenue | Dailey, Brown | $91,600.00 | $77,900.00 | $13,700.00 | $1,641.67 |
| 902 | 6 | 202 Union Road | Sheehan, Patricia | $74,500.00 | $65,000.00 | $9,500.00 | $1,138.39 |
| 911 | 19 | 148 Union Road | Valides, Jorge | $64,700.00 | $60,000.00 | $4,700.00 | $563.20 |
| 1001 | 9 | 638 Sherman Avenue | Barlett, Robert | $82,700.00 | $72,700.00 | $10,000.00 | $1,198.30 |
| 1007 | 13 | 414 E. Lincoln Avenue | Schwarz, Mary Ann | $84,300.00 | $70,400.00 | $13,900.00 | $1,665.64 |
| 1013 | 9 | 336 Sheridan Avenue | Worgs, Anthony | $64,600.00 | $60,000.00 | $4,600.00 | $551.22 |
| 1014 | 17 | 328 Bender Avenue | Ceterko, Jeffrey & Helen | $97,800.00 | $85,000.00 | $12,800.00 | $1,533.82 |
| 1015 | 18 | 471 Henry Street | Mickulonis, Irene | $98,400.00 | $88,000.00 | $10,400.00 | $1,246.23 |
| 1016 | 11 | 475 Elinor Avenue | Freeland, Herbert | $78,400.00 | $70,000.00 | $8,400.00 | $1,006.57 |
| 1101 | 26 | 204 Sherman Avenue | Rychlik, Roman | $66,200.00 | $60,000.00 | $6,200.00 | $742.95 |
| 1102 | 25 | 210 Sheridan Avenue | Arnone, Irma | $75,000.00 | $65,000.00 | $10,000.00 | $1,198.30 |
| 1105 | 21 | 493 Madison Avenue | Sievers, John & Eileen | $109,700.00 | $84,600.00 | $25,100.00 | $3,007.73 |
| 1110 | 11 | 121 Bender Avenue | Jancerak, Kevin | $98,600.00 | $76,900.00 | $21,700.00 | $2,600.31 |
| 1110 | 32 | 121 Charlone Terrace | Miller, Joseph & Diana | $90,800.00 | $80,000.00 | $10,800.00 | $1,294.16 |
| 1111 | 26 | 485 Markthaler Place | Mitra, Nirmalya & Medley, Michelle | $104,100.00 | $84,100.00 | $20,000.00 | $2,396.60 |