Thursday, August 17, 2006
By JAMES YOO
STAFF WRITER
RINGWOOD -- The borough has decided to fight a mandate that it revaluate all property in the community for tax purposes.
The Passaic County Tax Board has found Ringwood's ratio of assessed value to true market value is too low at 51 percent and ordered the revaluation in a July 17 letter.
A revaluation could cost $400,000 to $500,000. Borough officials, who had thought there was no problem with municipal tax books, take issue with the need for a revaluation.
"There was definitely no rush for Ringwood to do a revaluation. And then suddenly the county Tax Board drops this on us and we're right at the front of the line. That doesn't make any sense to us," said Councilman Bill O'Hearn.
Ringwood's next step is an appeal to the state tax court in Trenton. Borough Attorney Joseph Maraziti will write the appeal and send it in.
A sustained housing boom in recent years has radically altered the market worth of homes in North Jersey. That has prompted Tax Board orders for the periodic revaluations, which set taxable values of properties within a community.
In April, a state tax court judge ruled against Ringwood homeowners who had sued the borough to force a revaluation. But the judge recommended that the Passaic County Tax Board examine the issue, and the board ended up ordering the revaluation.
The Borough Council voted to contest the order at Tuesday's council meeting. Council members questioned why Ringwood was picked to revaluate over other towns.
"We've been told all along that our ratios, our assessed value and our market value, was pretty good, kind of under control," O'Hearn said.
County Tax Board President Richard Mohr would not elaborate on why Ringwood was chosen.
"If they want to come in and talk to us, certainly the door is open," he said.
The prospects of the borough's revaluation appeal are up in the air.
"I don't think anyone can predict what the outcomes going to be because you're dealing with third parties that are making the decision," said Deputy Mayor William Marsala.
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