Well if we don't pay more taxes, then how will Jersey City:

- employ Willie Flood's son as her council aide while he collects unemployment and a salary as her aide for the county position while selling drugs from her car?

- pay for incentives for developers to develop that horribly ugly waterfront property, with terrible views of Manhattan that would otherwise go undeveloped?

- have enough city employees to pass out campaign materials for Mayor Healy while they are on the clock?

- employ the inspector who goes to all the apartment buildings to make sure that paper isn't in the glass recycling bin and visa versa?

I'm not a fatalist, but don't expect a lot of this to change in the next four years. This underscores the importance of getting a good slate of candidates four years from now and making sure people vote. Putting our energy into that is our greatest chance at change.

Hi All, after hearing about the tax hike yesterday, I reached out to my Councilman, Steven Fulop who graciously invited me to attend the special hearing of the City Council to address the matter.

On a last minute whim of curiosity, I headed over and attended the council meeting - my first ever and listened.

A lot was talked about with regards to the budget and tax offsets, etc. But a lot was made on the fact that two of the four quarters are larger tax bills, and that the taxes are not even for all four quarters. Apparently this causes confusion and a cash flow problem and the banks require more in escrows, etc.

However, while last year there was a surplus, and that helped offset additional taxes last year, this year which started July 1, apparently we are facing a 42MM deficit. (someone correct me if I misstated)

The council talked a bit about voluntary furloughs, etc. and not even sure that those are legal. But unfortunately, I really didn't hear any discussion about cutting spending.

They opened up the floor and about five persons spoke. Originally I was hesitant to speak but got my will up and did so. I asked the council to consider that property values have declined considerably, and that in my particular case, up to $100K. Making me underwater in my mortgage. And, I was still being taxed at the value back in 2007 when times were better. I asked for a reduction in taxes given the declining values. I also pointed out that taxes are not equitable and that my neighbor is paying like half and that developers are getting deals.

I also asked the council to hold a line and cut spending and stop those special deals. They did indicate I could appeal my taxes and offered to help me in that process.

In the end, for the final vote, nearly all of the council recognized the tough times we are in. However, "the city comes first", and by a vote of 8-1 (with Mr. Fulop the only council member to say no), they voted for the measure.

So folks. Get ready for increased taxes. Tax and spend, tax and spend. What made things crazy is walking home, there were more citizens at the Groove for Grove concert than voicing their concerns over increasing taxes at a time when we can least afford them.

So this is my report. While I've been a blue-dog democrat all my life, I'm starting to get that anti-tax itch. (as in I've had enough with the taxes).

I implore the city and council to do everything they can to keep costs down and to cut pork where possible.

Thanks.

Fletcher

here is the NY Times Article that I referenced.

Tax Bill Appeals Take Rising Toll on Governments
by Jack Healy
Wednesday, July 1, 2009

provided by
The New York Times

NYT070609.jpg
Jim Wilson/The New York Times
Gus Kramer, a California assessor, said those appealing taxes say: "When can I have my refund check? I need to feed my family."

Homeowners across the country are challenging their property tax bills in droves as the value of their homes drop, threatening local governments with another big drain on their budgets.

The requests are coming in record numbers, from owners of $10 million estates and one-bedroom bungalows, from residents of the high-tax enclaves surrounding New York City, and from taxpayers in the Rust Belt and states like Arizona, Florida and California, where whole towns have been devastated by the housing bust.

"It's worthy of a Dickens story," said Gus Kramer, the assessor in Contra Costa County, Calif., outside San Francisco. "These people are desperate. They know their home's gone down in value. They've watched their neighborhoods being boarded up. They literally stand in there and say: 'When can I have my refund check? I need to feed my family. I need to pay my electric bill."

The tax appeals and reassessments present a new budget nightmare for governments. In a survey conducted by the National Association of Counties, 76 percent of large counties said that falling property tax revenue was significantly affecting their budgets, said Jacqueline Byers, the association's research director.

Officials in some states say their property tax revenue is falling for the first time since World War II.

The recession has already taken a significant toll on states' budgets, as rising joblessness, a weak business climate and a drop in consumer demand have cut sharply into receipts from taxes on sales, personal income and business earnings.

The pain at the state level is trickling down to county and local governments. To compensate, about 10 percent of large counties are raising the tax rates associated with home values to minimize the revenue loss, the county association said.

Even so, most counties simply have to absorb the lost revenue. Municipalities are laying off workers, renegotiating labor contracts, freezing salaries and cutting services.

The revenue losses are coming as homeowners prod towns for new assessments, and as municipalities conduct regular revaluations of their real estate. While declining residential values weigh heaviest on many governments, the value of commercial real estate is also sliding as businesses shut down and move out of storefronts or shopping malls.

Property taxes are meted out by a disparate patchwork of cities, towns, counties, and school and fire districts, all with their own rules. Because tax formulas vary widely county to county, not every decrease in assessed values automatically lowers a household's property taxes.

But officials across the country say there is no question that the number of appeals has risen from the usual trickle to a flood.

In suburban Atlanta, thousands of people lined up at government offices to file their requests for reassessments before a March 31 deadline. In parts of Ohio, appeals have multiplied fivefold. Tax lawyers in the northern suburbs of New York say they have never been so busy, and some towns have hired extra employees to sift through the paperwork and are spending hundreds of thousands of dollars on legal fees to deal with the cases in tax courts.

The call for counties to acknowledge the falling price of homes is loudest in states where taxes are highest, or the housing crisis has hit the hardest.

"We've been absolutely getting killed," said Robert W. Singer, the mayor of Lakewood Township, N.J., and a state senator, whose town is setting aside $2 million to pay tax refunds to homeowners. "We've never had this before. Usually they're undervalued. Now, everyone's overvalued."

The appeals are not just coming from individual homeowners. Condominium associations and entire subdivisions are pushing for new tax assessments, as are companies that own office towers, industrial parks and shopping malls.

New Jersey, which has the nation's highest property taxes, has been besieged by tax appeals from homeowners like Peggy Tombro, whose rambling home in Bound Brook is assessed at a value of $1.8 million but is languishing on the market with an asking price of $1.3 million. Her taxes are increasing to $53,000 a year.

"I don't know what else to do," said Ms. Tombro, 63, who has gone back to work selling antiques to pay her tax bill.

In the Inland Empire of California, near Los Angeles, Joylette Lynch, 70, is challenging the assessed value of her home as she tries to scrape together $1,158 a month to pay her mortgage, taxes and other bills. Her two-bedroom house in a community for older residents was worth as much as $280,000 three years ago, but houses on her block are now selling for less than $100,000.

"If the house is not worth what I bought it for, why am I paying the same amount in taxes?" she asked.

Ms. Lynch, meanwhile, lost her job at a Bed, Bath & Beyond this year, and is behind on her mortgage payments. Shaving a few hundred dollars off her annual tax bill of $4,300 might not keep her out of foreclosure, but it would help, she said.

"Everything's in God's hands now," she said.

Officials say stories like these are common as unemployment hits 9.5 percent and people seek to trim their budgets. Appraisers and assessors, normally concerned with land values and comparable sales, are becoming ersatz crisis counselors.

Jeff Furst, the appraiser in St. Lucie County, Fla., said a 62-year-old man recently walked into his office and described how his wife had been laid off and his salary had been cut in half. He was struggling to pay his taxes and looking for relief, Mr. Furst said.

"We're hearing from people like this every day," Mr. Furst said. In St. Lucie, which sits along the Atlantic, property tax revenue is expected to fall 20 percent, and tax appeals are 10 times as high as they are normally. "Most people are going to see a significant decline in their tax bill."

Mr. Kramer, the assessor in Contra Costa County, said homeowners started swamping his office with requests for new assessments in December. As many as 500 people would call in one day. His voice mail message now begins: "If you're calling to request an informal review of your property value due to the declining real estate market."

Contra Costa has now reduced the recorded value of more than a third of the 350,000 privately owned properties in the county.

Lisa Driscoll, the county's budget director, said property tax revenue had been growing about 8 to 9 percent a year but was now projected to decline 5 percent next year. The county has cut $50 million from its budget to offset the decline in real estate and other taxes.

Bonnie Grassley's house in Fort Pierce, Fla., reflects the rise and fall of the broader economy. Its assessed value topped $153,000 in 2006, as Florida's housing market caught fire. Now, it is worth $77,500.

Though her tax bill is only $150 a month, Ms. Grassley is out of work, spending her savings, and says she hopes a reassessment will save a couple hundred dollars a year.

"My home means everything to me, and it's all I really have," Ms. Grassley said. "I'm determined to keep it, come hell or high water. It's a terrible way to lose your home, just over taxes."

Time to throw one of those "TAX TEA PARTIES" on the steps of city hall. Or better yet, maybe at Liberty State Park in the Morris Canal or something like that.

Unfortunately I bought my small 545 sq ft condo back in August of 2007 for $339K downtown here in Harsimus Cove. Now, at best, based on going to a lot of open houses, the best I could get if forced to sell would be like approximately 100K less.

Property values have fallen off a cliff. And now they want to raise property taxes? Property taxes need to come down dramatically. For my 545 measly square feet, I pay approximately $5K... with a big payment just yesterday to avoid the City's threatened "Tax SALE". Bastards.

No more deals for developers. No more PILOTS. How about a city wide tax readjustment for EVERYONE. It pisses me off when I look at the online tax rolls and see others who have had their place for a long time are paying nothing for taxes while I get raped.

Something has to be done. And for a start, JC needs to freeze new spending and stop giving sweetheart deals to developers.

When will the people revolt against the ever increasing taxes. I feel I am taxed to hell already. And given the fact I lost my job back in October with the financial markets collapse, that doesn't help either.

I'm getting taxed at a rate that reflects much better times two years ago. Not the distressed times we live in now. What can I do?

Anyone see the article in the New York Times? Time to appeal all property taxes.

Anyway. Just my own personal thoughts.

FG

they did this 4 years ago after the election... 18% if I remember to the home owners, property owners/ renter's after it was passed on... change you can see (and feel lighten your pocketbook)... Tax increases are working so well at federal/state level, can't you feel the stimulus package working???? Will be fun to watch real estate prices plummet more... at least everyone is paying their fair share :) including all those "rich people" in the Towers and on the waterfront

Right down the fairway, shakatah - long and straight.

The question that comes to mind for me is: Why is this being considered at a "special meeting" at 5pm? Do you think maybe the number of people who showed up and were very vocal at the Crystal Point giveaway meeting had anything to do with their seeming desire to sweep this under the rug?

It's hard to tell from the typically cryptic Journal reporting, but it seems as though there is a two-step process, no? The ask tomorrow is for a 12% increase in the tax levy and then punt for two quarters until they come back to deal with the $62 million revenue gap, right?

And of course, there's the standard problem of the lack of budgeting accountability: Who the hell knows what the budget will be because we won't see it for months and months. (For the record, the new budget year started last Wednesday - July 1. No proposed budget in sight.) Strange that people are being asked to pay more taxes when no one will say how much will be (and has already been) spent and for what!!!

Anyone going to the meeting tomorrow??

A given. Better question is what the upper threshold will be and if it will be enough for a revolt. The city is in a really, really bad spot whatever it does as the city was already going to see a TON of tax appeals because of the market and economy, add a tax increase on top of that and just thinking about it makes me dizzy.

Many municipalities have recently done or are in the process of doing across the board reassessments to stave off the flood of appeals they were expecting next year due to the lousy housing market. The reassessment decreased the likelihood of tax appeals since all property assessments will now be based on valuations done at the same time.

JC better get something in place and QUICK, if not, the tax increase that will undoubtedly come will encourage more appeals, which will yeild more successful appeals due to lower housing values based on the current market, thus decreasing revenue, and increasing the hole in the city budget.

Added to that the State has already won the battle against extra school aid so that revenue source is gone and from what I understand each dollar used to refund the property owner for a successful tax appeal comes from the city, making the hole in the city budget bigger.

Wow, someone must be thinking, "If we had just done more frequent revals, not spent like crazy under Abbott and stop handing out PILOT agreements like candy on Halloween we would not be in this mess. I really hope that the street improvement projects will distract many."

Unless Healy has a fat rabbit up his sleeve or State and Federal connections and pull that would boggle our minds, it's going to be a crazy couple years around here.

And only a month after the election.....

SHOCKING!

Of course, any increase won't apply to Crystal Point.

Tuesday, July 07, 2009
By AMY SARA CLARK
JOURNAL STAFF WRITER

Should city brace for a tax hike?

The Jersey City City Council is scheduled to vote on a new tax rate for the next two fiscal quarters at tomorrow night's meeting. But officials yesterday were mum on how much taxes will go up - if at all - if the measure passes.

The council is being asked to approve a $170 million tax levy for the fiscal year that began July 1 - $17.9 million more than last year's tax levy.


But whether taxes go up will depend on the amount of new ratables and other revenue coming into the city, officials said.

Jennifer Morrill, a spokeswoman for Jersey City Mayor Jerramiah Healy, said yesterday she didn't know if taxes are going up. Calls to Business Administrator Brian O'Reilly and Tax Collector Maureen Cosgrove were not returned.

Even City Council members seemed to be in the dark.

Ward D Councilman Bill Gaughan and Ward E Councilman Steven Fulop said they didn't know what to expect at tomorrow's vote.

A City Hall source said Jersey City is heading into the new fiscal year with an expected $62 million less in revenue than last year.

This special meeting is scheduled for tomorrow at 5 p.m. at City Hall, 280 Grove St.