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Tax Abatements? - Just for developers
#1
Newbie
Newbie


Are tax abatements only given to developers or can private citizens get them?

If your not developing a condo complex or something but just a home to live in can you get any kind of abatement?

Posted on: 2016/5/19 19:42
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Re: Buying "Hold" Properties in JC Ghetto
#2
Newbie
Newbie


A lot of these links that have been provided are for the larger houses on the east (?) side of the street. The opposite side has what look like smaller homes, still brick and very nice looking.

Have any of those been restored?

Posted on: 2016/5/16 20:20
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Re: Jersey City mayor-elect orders end to citywide reval
#3
Newbie
Newbie


Quote:

andrewjake wrote:
Thanks for the response..

Well I'm an admitted novice but as an example I found one single family home on Pine Street that needs work but is perfectly habitable. According to my research the city has it valued at $24,000! I think we can both agree that a 3 bedroom home in working condition in what we both agree is a nice little hood is worth way more than that...It was not actually on the market mind you but if it were I would imagine it would go for $300-$350K maybe more. Currently it's being taxed at 7% of it's assessed value so if you bought it and did some improvements and in the reval they assessed it at 400K that's $28,000.

What I didn't factor in is that I'm an idiot who knows nothing about taxes, property or otherwise. Having read through some of the other posts it seems like by law the whole thing has to be revenue neutral which means the city has to take in the same amount of money before and after, it's not about making more money its about making the distribution of taxes fairer. So the rate would be adjusted to extract that amount of money from the tax base with all the properties revalued.

So as an example if you were living in the town of Three House, NJ, a town so named because it has only three houses and the state ordered you to do a reval it would go like this.

Let's say your total revenue the year before the reval is $10,500 and these are the currently assessed values of the cities three homes.

Property #1 ? $100,000 actual value ($50,000 assessed value) Taxes = $3,500
Property #2 - $75,000 actual ($50,000 assessed) Taxes= $3,500
Property #3 - $45,000 actual ($50,000 assessed) Taxes = $3,500

So the property tax rate is 7% which brings $10,500 into the cities coffers.

Once they do the reval the target for revenue would remain $10,500 and the tax rate would be change to get to that number...

Property #1 - $100,000 ($100,000 assessed) Taxes = $4,700
Property #2 - $75,000 (75,000 assessed) Taxes = $3,525
Property #3 - $45,000 (45,000 assessed) Taxes = $2,115

So under the old assessments all three homes are paying the same tax even though they are not worth the same amount. Under the new assessment the rate is reduced to 4.7% in order to get to $10,500 so Property #1 pays quite a bit more, Property #2 pays a little more and property #3 pays less.

Can anyone who knows more than I do here tell me if I have that even a little bit right?


This brings up an interesting point that I've never really understood. Are the assessments meant to reflect the actual market value of the home?

usually when you're house shopping the value on which the taxes are figured is well below what you're paying, but I always figured that was because even cities that have been more diligent than JC don't do revals every year so they can pretty quickly be outdated.

Posted on: 2016/5/10 17:57
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Re: Jersey City mayor-elect orders end to citywide reval
#4
Newbie
Newbie


Thanks for the response..

Well I'm an admitted novice but as an example I found one single family home on Pine Street that needs work but is perfectly habitable. According to my research the city has it valued at $24,000! I think we can both agree that a 3 bedroom home in working condition in what we both agree is a nice little hood is worth way more than that...It was not actually on the market mind you but if it were I would imagine it would go for $300-$350K maybe more. Currently it's being taxed at 7% of it's assessed value so if you bought it and did some improvements and in the reval they assessed it at 400K that's $28,000.

What I didn't factor in is that I'm an idiot who knows nothing about taxes, property or otherwise. Having read through some of the other posts it seems like by law the whole thing has to be revenue neutral which means the city has to take in the same amount of money before and after, it's not about making more money its about making the distribution of taxes fairer. So the rate would be adjusted to extract that amount of money from the tax base with all the properties revalued.

So as an example if you were living in the town of Three House, NJ, a town so named because it has only three houses and the state ordered you to do a reval it would go like this.

Let's say your total revenue the year before the reval is $10,500 and these are the currently assessed values of the cities three homes.

Property #1 ? $100,000 actual value ($50,000 assessed value) Taxes = $3,500
Property #2 - $75,000 actual ($50,000 assessed) Taxes= $3,500
Property #3 - $45,000 actual ($50,000 assessed) Taxes = $3,500

So the property tax rate is 7% which brings $10,500 into the cities coffers.

Once they do the reval the target for revenue would remain $10,500 and the tax rate would be change to get to that number...

Property #1 - $100,000 ($100,000 assessed) Taxes = $4,700
Property #2 - $75,000 (75,000 assessed) Taxes = $3,525
Property #3 - $45,000 (45,000 assessed) Taxes = $2,115

So under the old assessments all three homes are paying the same tax even though they are not worth the same amount. Under the new assessment the rate is reduced to 4.7% in order to get to $10,500 so Property #1 pays quite a bit more, Property #2 pays a little more and property #3 pays less.

Can anyone who knows more than I do here tell me if I have that even a little bit right?

Posted on: 2016/5/10 16:52
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Re: Jersey City mayor-elect orders end to citywide reval
#5
Newbie
Newbie


I just sold my place in Paulus Hook, but can't afford to stay there so we're looking in what I call Communipaw-Lafayette down by the BHLR. Some of the single-families I've seen there are literally paying $1500/yr in taxes, and by my calculations are undervalued by a factor of at least 12.

I'm not really interested in the argument over whether the reval should happen, it seems to me it has to at some point and we might as well get it over with. What I want to know is what happens Day 1 post-reval?

My taxes go from $1,500 to $28,000 overnight? Is there a mechanism that can be put in place to at least spread the increase out over a certain number of years? Can they lower the actually tax rate to make it more affordable?

Thanks.

Posted on: 2016/5/10 15:56
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Re: Thinking about renting on Monitor Street Bergen / Lafayette
#6
Newbie
Newbie


Have to say I'm rooting for the former.

Posted on: 2016/3/24 0:01
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Re: Thinking about renting on Monitor Street Bergen / Lafayette
#7
Newbie
Newbie


Wow thanks for a relatively level headed evaluation of the neighborhood.

I currently live in a small condo in Paulus Hook but desperately need more space and while I stand to make a tidy profit on my place I've pretty much been priced out of the neighborhood unless I want to plow every penny I have back into a new place and even then...

I went over to the corner of Communipaw and Pine to the Lafayette Corner Store to try to get a better idea, they were very nice and answered all my questions.

I did notice that the building across the street was under construction and it looked like some sort of business was going in on the ground level. I actually sent a request to the city to get the permits so I can try to figure out what is going in there, anybody have any idea?? I think the address is 321 Communipaw Avenue right on the corner of Pine Street??

Other than that I know it's not going to be as polished as PH but it's easy to get excited about the housing stock, it's very close to the Light Rail and the people seem nice enough even if it is a little desolate.

Posted on: 2016/3/23 22:33
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