Re: 'What is this, Russia?' Jersey City property owners fight developer
Posted by 135jc on 2018/7/10 21:41:00
The tax rate was was too high for new construction. The rest of the city had been paying on an assessment that was a fraction of actual value. Now that the reval has been done those differences do not exist. Going foward the abatments should be very limited.
You show a common misunderstanding about how this system works. Not that it's critical to this discussion, but I've made eliminating ignorance of this system a mission, to counter Yvonne's lies, smoke, and mirrors.
Older properties had a low assessment relative to FMV, but this was compensated for by the Equalization Rate, in 2017 23.66. What this meant was the assessments of the city as a whole were 23.66% of the FMV. When new (or gutted) ratable properties are assessed, they take 23.66% of FMV and make that it's new assessment, to keep it in line with the rest of the city as it would be taxed at the official rate (in 2017 7.8%).
Where the unfairness came from was some areas of the city appreciated faster or slower than others over 30 years, meaning they were outliers of that average represented by the Equalization Rate. This is how Downtown brownstones were paying 0.8% and Greenville hovels 4%. So a new JC ratable property would have been at 1.826% last year, higher than the older DT properties, but lower than most of the rest of the city, which were subsidizing the low taxed Downtowners. Got it?
https://www.state.nj.us/treasury/taxat ... lized/2017/2017Hudson.pdf
Gotta love how Yvonne can't answer numbers with numbers, she just says she bothers tax officials, and then doesn't understand what they tell her.
I am aware of the so called equalization rate. I almost included in my postbut figured it was common knowledge. As you pointed out it was not fair. As with other parts of the city even within downtown it was unbalanced between existing and new construction. To be fair as downtown prices adjust to the new tax rate there should be a new reval preformed. That probably wont happen so for a while areas outside of downtown will get the break. To my point abatements should not be used as property tax equalization
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