Get your Hoboken Tax Appeal ON!

3/2/2011:

Another new feature today on Hoboken411…

Cornering The Hoboken Real Estate Market

Cornering the Market (An Insider’s Look At Hoboken Real Estate) is a new bi-weekly feature focusing on important real estate topics for Hoboken residents.

Written by Brian Murray (of Remax Realtors – 54 Hudson St.), a full-time Realtor with a decade of experience in the Hoboken market, CTM brings a unique insider perspective to the Hoboken real estate market.

The writing is sometimes quirky and smattered with a mix of market statistics and strong opinions.

Dirty Little Hoboken Secret: 2010 Tax Appeals

Shhhhh… It’s Property Tax Appeal time again. You know that you pay too much in taxes. We all do. Do you think the appeal is just a pipe dream and you’ll never get the cost of the appeal back? Consider this. According to the city’s own website, The 2010 Hoboken budget has set aside four million dollars for tax appeals! Watch my video – and see the top five tax appeal questions my clients ask me (after the break.)

See Brian’s Top 5 – after the jump!

1. Why a tax appeal in 2010?

Unless you’ve been living under a rock for the past two years, you’ve seen home values in Hoboken slide. Prices are down over 20% since the crash in fall of 2008. So prices are way down and thereby the comparables that Hoboken uses to value your home are down too. (Comparables from Oct 1 -2009-Oct 1, 2010 are the primary basis of an appeal.) No one from the tax collector’s office is going to show up at your door with a sack full of cash. You have to “earn it”.

2. How do you know if you qualify?

A good starting point is the Hoboken Tax Appeal Calculator.

Just plug in your assessed value and current market value to get a ballpark as to whether an appeal may be worth your time. ( The city does get a 15% margin of error so every Tom Dick and Harry isn’t filing over $20) If your building was built between 2003 and 2008 or you condo was reassessed due to renovations during that period, you are likely a good candidate.

3. How do I appeal?

There are several ways to appeal. You can use an attorney or appraiser that specializes in appeal or you can fill out the forms yourself and take your chances. Realtors can only give you comps that you might want to use, we do not file appeals or represent you during the appeal process.

4. How do I start the appeal myself?

Download the tax appeal forms from the county website.

My free 2010 Hoboken Real Estate Report has a list of all sold condos as a starting point. Your realtor can provide you with specific comps which you’ll need.

5. What is the Tax Appeal Deadline?

April 1, 2011 is the deadline. If you are going to Opening Day at Yankee Stadium you should make sure your appeal is in before the tailgating begins.

So now you know. If you’re paying too much and don’t file the appeal… I am at a loss for words. (It happens. not too often, but it happens.)

Resources

Property tax records are available at www.njactb.org
Appeal Forms are available at www.hudsoncountytax.com

More Brian Murray

Visit Brian Murray at hobokenhomefinder.com for weekly market updates, the latest stats, and open house directories.

And don’t forget to bookmark or subscribe to the Cornering the Market category here on Hoboken411 for the next update!

Leave a Reply

5 Comments on "Get your Hoboken Tax Appeal ON!"

pawzclawz
Member
pawzclawz

Hi,
I never appealed my tax increase. I’m hoping someone can help me understand if it’s worth appealing and if I’m able to appeal. I own a condo on 1st&Park. It is not a new construction. It’s an apt.house built in 1920. It’s a six unit building. It has four apt.units and two commercial spaces. It was converted into condos and commercial spaces in 2007. I also do not live there. I have it rented out. I don’t know if that makes a difference as well.

t167
Member
t167

Go to http://www.firstsourceappraisal.com/taxappeal to see if you qualify. All you have to do is type in your address, and you can find out if you have a case.[quote comment=”203890″]Hi,I never appealed my tax increase. I’m hoping someone can help me understand if it’s worth appealing and if I’m able to appeal. I own a condo on 1st&Park. It is not a new construction. It’s an apt.house built in 1920. It’s a six unit building. It has four apt.units and two commercial spaces. It was converted into condos and commercial spaces in 2007. I also do not live there. I have it rented out. I don’t know if that makes a difference as well.[/quote]

homeworld
Member

That’s why I don’t understand why everyone was complaining about that “47%” tax increase 2 years ago. Just appeal it and it goes away. That’s what we did.

nicole
Member
nicole

We saved $4,000 a year by appealing our condo in a circa 1910 rowhouse (went condo in 2003). At first glance, the assessed value seemed like a bargain, about 60% of what we paid. However, that converted to a market value of 2.2 times the selling price.

The savings came in a two-step reduction, lowering the taxes by $2k for 2010 and $4k going forward. I’m glad we used an attorney because she encouraged us to reject the first offer from the city and counter.

Craig-D
Member
Craig-D

It was wise of Hoboken to budget for tax appeal awards. Jersey City didn’t and now they are in a hole for all the money they had to pay back to winners of tax appeals. Most newer construction (1999 and newer) will qualify for an appeal. The older properties in town are vastly underassessed in most cases (especially the turn of the century rowhouses) and are actually not paying their fair share of taxes, so there is likely no tax appeal on tap for them.

For those who qualify, we are not talking chump change here. My appeal resulted in a $2100 reduction of my annual property taxes last year. My unit, built in 2002, had an assessment that when you did the conversion math resulted in an actual value of over $200k more than I paid for it – a valuation that was absurd even at the height of the market. Most professionals handling appeals will tell you if you qualify for a tax appeal over the phone or on their websites for free with no obligation. All you need to do is provide your address. So there’s no excuse to at least do that much.

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