After many attempts to block the revaluations, Jersey City will have to revalue its properties. Property revaluation in itself is quite self-explanatory. It takes in to account the size and type of the property, location, and changes that have occurred in the area. Considering the changes happening in the Gold Coast, upward revaluation is forthcoming.
Jersey City has been ordered by the Hudson County Superior Court to pay legal fees for Realty Appraisal Co., on top of the $984,511 awarded to them after a breach of contract case. Jersey City will also face a $213.37 interest fee to be charged daily, until the city pays what it owes. Realty Appraisal Co., a West New York-based real estate appraisal firm, stated in their case document that “the defendant acted in bad faith. It was compounded by Jersey City’s Mayor’s decision to use the pendency of the lawsuit as the justification for the continued avoidance of a constitutionally required revaluation.” The city will seek an appeal that could eventually cost the city $8.5 million to cover all expenses.
|Credit: The Jersey Journal (Reena Rose Sibayan)|
While Jersey City has been the focus of this property revaluation, there are many other cities that will be targeted by state officials. Other cities expected to be reevaluated are Elizabeth, Harrison, and East Newark. All in all, it is expected that about 32 towns and cities in New Jersey will be revalued. Some of these locations have not been revalued in 25 years, with some reaching 39 years without revaluations. With the large population boom that has hit Hudson and Bergen County in the last decade or so, up about 40 thousand in the last 5 years, taxes will certainly go up.
|Credit: Wikimedia Commons (Flickr User: Heidiologies)|
Author’s Take – As most major changes, there are pros and cons for each side of the story. It seems that many feel like the change can be beneficial as it lets residents of downtown Jersey City, for example, pay their fair share of taxes. However, those that still feel distrustful of their local government feel that it may eventually end up negatively affecting them. In one of the town meetings about the situation, stated in a NJ.com article, “a local pastor forced the mayor to defend himself against accusations that his policies favor downtown property owners.” The thought is that many living in the revitalized downtown Jersey City have been taking advantage of the low tax rates, especially when considering the change the massive changes that has occurred there compared to other areas.
On the contrary, Fulop stated that the revaluation would be detrimental to those living in impoverished areas and those who have been lifelong Jersey City residents. Others state that this revaluation would actually reduce their taxes. Others state that this revaluation would actually reduce their taxes. Many others feel that Fulop essentially costs the city about $3 million to postpone something that was almost certainly going to happen, something that many actually see as inevitable.
Check out the video from Fios News 1 below discussing the revaluation.
Featured Image Credit: The Jersey Journal (Reena Rose Sibayan)