Taxpayers take Ringwood to court

Thursday, January 27, 2005
By JAN BARRY
STAFF WRITER


RINGWOOD - A tax revolt is brewing among many new homeowners who had sticker shock when they received their property tax bills.

In a complaint filed in state tax court, the owners of 46 homes are seeking a revaluation of every property in town. They argue that their tax assessments are much higher than those set on older homes.

"I'm representing a group of homeowners who have built or bought new houses in the last several years," said Steven Irwin, a West Orange-based attorney. "When they compare their tax bills to homes that are 10-15 years old, there seems to be a big disparity."

The complaint, filed last fall and recently assigned to a tax court judge in Morristown, also alleges that the Passaic County Board of Taxation and state Division of Taxation failed to order a revaluation.

One home cited in the complaint was assessed last year at $556,700, a figure that generated more than $23,000 in property taxes for municipal, school and county purposes.

The average home in Ringwood, in contrast, was assessed at $174,600 and paid $7,200 in property taxes in 2004, according to the state Division of Local Government Services.

Ringwood's response is that newer homes do indeed pay more taxes, since they are substantially larger than the converted lake cottages, log cabins, farm houses and other older homes in the Highlands community.

"The newer properties tend to pay more in taxes because the construction is larger," said David Ruitenberg, the borough's tax attorney.

Ruitenberg argues that Ringwood's tax procedures are "in line with other non-urban towns" in Passaic County. And he maintains that the borough is within state guidelines for when a revaluation should be done.

Ringwood's last revaluation was in 1990.

Irwin argues that Ringwood is "right at the cusp of whether they should or shouldn't [revaluate]," and he believes his case can win in court.

"Between 1990 and now, the development demographics of the town have dramatically changed," he said.

Many of the homeowners listed in the complaint live in new subdivisions where houses sold for $600,000 and up. Others live on upscale lots on older streets.

"It's all the new homes, basically, that are supposed to be such a good ratable for Ringwood," said Mayor Wenke Taule. She said the Borough Council authorized hiring an assessment company to review the contested assessments.

The demand for a revaluation is not the only sign of taxpayer discontent. Last week, the council approved an unusually long list of payments, totaling about $18,000, to 18 property owners who won appeals to the county or state tax court of assessments on additions to their homes or businesses.

Irwin said he didn't see the point of filing individual tax appeals on behalf of his clients.

"It seemed to make sense to force the town to bring everybody up to a level playing field," he said.