Morristown Property Tax Revaluation – 2023 Letters Were “Wrong”, New Ones Coming Soon

Morristown’s first real property tax revaluation in approximately 20 years is underway and scheduled to be completed this year.  Our prior blog post on this topic from early 2023 discussed the process that is now occurring and confirmed that the revaluation, originally set for 2022, had experienced delays for a variety of reasons:

Morristown Property Tax Revaluation Delayed to 2024

More recently, concern has been raised about the possible “shift” in property tax burdens which might result from declining commercial real estate values, which could reduce the ratable base and create more of a burden on residential property taxpayers to meet budgetary expenses:

Weakness in CRE Market Could Create Heavier Property Tax Burden For Homeowners

This phenomenon is being experienced around the country, due primarily to changes in the office real estate market which have resulted in lower values for office properties, many of which in New Jersey are being redeveloped with other uses.  Outside of New Jersey, other jurisdictions have contemplated raising property tax ceilings for commercial properties to mitigate the possible impacts of declining ratable bases upon homeowners.  For instance, in Boston, a property tax hike is being proposed to help close this probable “gap” in city budgets.

Back at home in Morristown, a stir was caused when some looked at the proposed reassessments and projected property taxes which had been mailed to them last fall from the consultants hired by the Town to perform the municipal revaluation. According to Morristown Mayor Tim Dougherty, those numbers “were wrong” because they failed to include county and school board info which form part of the property tax formula in New Jersey.  The new, revised information should be in the hands of Morristown property owners soon, because the deadline to file a property tax appeal for property in Morristown is May 1, 2024.  While some may assume that a revaluation will result in an increase in local property taxes owed, that is not necessarily true.  The revaluation only modifies the property tax assessment, while property taxes owed are determined by applying the tax rate (also changed each year) to the assessed value in order to meet the municipal budget and other local budgets for schools and county government.  It is, therefore, possible that a revaluation may result in a decrease in local property taxes owing by any particular owner.

While the ultimate objective of the revaluation is to end up with fair and accurate assessments for all properties, it does present some risks to taxpayers that their assessments will be unfair or inaccurate.  If you believe that your property tax assessment is not fair or accurate, it is prudent to contact an experienced tax appeal attorney who can help you navigate through the specifics of each individual case.  If you have any questions concerning your property tax assessment, contact McKirdy, Riskin, Olson & DellaPelle, P.C. to speak with an experienced attorney, or write to us at info@mrod.law.