Township Adopts New Budget With Lower Real Estate Tax Rate

The township was forced to lower the real estate tax rate due to the new Allegheny County assessments. UPPER ST. CLAIR, PA -- Upper St. Clair commissioners approved a new budget for 2013 that "holds the line" on taxes. The budget lowers the real estate tax rate from 4.6 percent to 3.9 percent due to the Allegheny County's new property assessments. There is a Pennsylvania law in place that requires millage rates to be adjusted so that the township does not reap a windfall from the new values. According to the most current information, the township's assessed value will rise by an estimated 18 percent in 2013. Therefore, if your property assessment went up more than 18 percent, your township taxes will likely increase in 2013. If your reassessment went down or remained the same, your taxes will likely decrease. Real estate tax bills will be mailed to taxpayers on May 1, 2013. The income tax rate will remain at .8 percent, the sanitary sewer multiplier will remain at 2.19 and the local services tax will remain $52/year. Commissioners unanimously approved the budget Monday night, however, Commissioner Glenn Dandoy said he did "reluctantly." He said he thought the budget for the library department was too expensive. Director of Finance August Stache told commissioners he expected the final budget would be posted on the township website by the end of the year.

Town of Riga maintains 0 percent property tax rate

Greece, NY -- Residents of the Town of Riga will, once again, pay no property taxes under next year's budget. Town residents pay no property tax because revenues exceed Riga's expenses, according to Supervisor Bob Ottley. "It has been this way since 2005 and should continue for many years — provided costs are controlled," he said. The spending plan, approved last month, includes $2,755,477 of expenditures, excluding the special districts, like water and sewer. That's an 8 percent increase in spending over this year, which Ottley attributes to the addition of $192,000 for capital projects and road repairs, which is 9 percent more than this year. Excluding the capital projects, spending decreased nearly 1 percent, he said. "The town department heads and their staff worked hard at controlling costs and presenting well thought out plans on how to efficiently continue to provide and improve on the services that we offer," Ottley said. The savings are a result of outsourcing dog control and kennel services, using private contractors for mowing and cleaning services, and controlling operational costs, according to the supervisor. Additional savings are coming from an extension of the life cycle of some of our bigger trucks in the highway department, as well as an aggressive replacement policy on some of the heavy pieces of equipment used in highway maintenance. Costs for health care insurance premiums are expected to rise by nearly 17 percent next year; there is no change in either the benefit plan or the percentage of contribution that the Town of Riga will make to these plans for full-time employees. The town's contribution for New York State retirement is also expected to increase — a fee mandated by the state, Ottley noted. The budget includes a 2 percent raise for all Riga employees and elected officials will receive a 2 percent wage increase. The Newman Riga Library will receive a slight increase in funding while the Riga Cemetery will, for the first time, receive some monies from the town to offset operational costs. New dugouts also will be installed at the new baseball field at Sanford Road Park. The spending plan also designates funds for replacement of the front end loader, backhoe, and skid steer loader, as well as a purchase of a new brush chipper, which will be purchased and shared with the Village of Churchville. Two new capital projects for next year are to perform drainage improvements along Buffalo Road, west from the village to Dollar General; a sidewalk will also be installed there in 2014. The second project involves renovation work to make the kitchen area more accessible in the Raymond C. Adams Cobblestone Hall and replacing its sidewalk. "Our budget process was done very effectively and in a way that the entire board has a great understanding of where all of our monies are being spent and where our revenues are being generated," Ottley said.

Property tax bills going up

Massachusetts -- The Board of Aldermen has calculated property tax bills for fiscal 2013, which will result in a 2.3 percent increase for homeowners and a 4.7 percent increase for commercial/industrial property owners. On average, homeowner’s tax bills will increase by $119.01, to $5,212.39, and business owner’s bills will go up by $443.92, to an average of $9,728.55, according to data prepared by the city assessor’s office.

Facts and Fiction about the 3.8% 'Real Estate' Tax

All kinds of rumors have been swirling about what exactly is the 3.8% tax and how it will affect homeowners. Congress passed this tax in 2010 as part of President Obama’s health insurance and Medicare overhaul and is set to take effect January 1, 2013. The tax is estimated to bring in $210 billion in revenue over 10 years and is slated to go toward funding the Medicare Trust Fund. Although referred to as a real estate tax, in reality, it is a tax on “unearned” investment income for high earning taxpayers (individuals who have an Adjusted Gross Income (AGI) over $200,000 and couples filing a joint return with an AGI over $250,000 ($125,000 when filing separately)). Investment income includes interest, dividends, capital gains (less capital losses), and rental income (less expenses). Let’s start with what is NOT TRUE about the tax: • It is not a “sales tax” on home sales. • It is not an increase in the transfer tax on home sales. • It does not affect the exemptions already in place on the sale of primary residences when the gains are less than $250,000 for an individual and $500,000 for a married couple. • The mortgage interest deduction will not be eliminated for any taxpayers. What is TRUE about the tax? • Your AGI is calculated to include any investment income. • The tax applies to the LESSER of the investment income amount or the excess AGI over the $200,000/$250,000 limits. • The investment income will be subject to BOTH income tax AND the 3.8 percent Medicare tax. • For investors who own rental properties, the tax will apply to net rental income (gross rents minus interest on debt service, repairs, depreciation, and property taxes). • The rent from vacation properties that are rented for less than 14 days per year are not considered investment income. However, when a vacation property is sold, any gain is considered as investment income. • If your “sole occupation” is the ownership and management of investment properties, you are not subject to the tax. How about an example? A couple has lived in their home for 22 years and sells it for a capital gain of $540,000. Their earned income is $190,000 per year. While they would be subject to income tax on their total AGI of $230,000, no tax would be owed due to the 3.8 percent Medicare Tax. Earned income $190,000 Gain on sale of residence $540,000 Total taxable investment income $40,000 ($540,000 - $500,000) AGI $230,000 ($190,000 + $40,000) AGI threshold for couple $250,000 ($230,000 - $250,000 < 0) 3.8 percent Medicare tax owed $0 AGI is < $250,000; therefore, no tax is due. If the same couple’s earned income was $300,000, they would owe the 3.8 percent tax on $40,000 which is $1,520 in addition to income tax due on their AGI of $340,000. Earned income $300,000 Gain on sale of residence $540,000 Total taxable investment income $40,000 ($540,000 - $500,000) AGI $340,000 ($300,000 + $40,000) AGI threshold for couple $250,000 ($340,000 - $250,000 = $90,000) 3.8 percent Medicare tax owed $1,520 ($40,000 x 3.8 percent) AGI is $90,000 over the $250,000 limit, but the tax is assessed on only the taxable investment gain of $40,000. One more example: If an individual has an annual salary of $120,000 but makes $40,000 on net rental income, $10,000 on dividend income, and sold an investment property for net a $60,000 gain, he/she would be subject to the 3.8 percent tax on $30,000 which is $1,140 in addition to the income tax due on their AGI of $230,000. Earned income $120,000 Net rental income $40,000 Dividend income $10,000 Gain on sale of investment property $60,000 Total taxable investment income $110,000 ($40,000 + $10,000 + $60,000) AGI $230,000 ($120,000 + $110,000) AGI threshold for individual $200,000 ($230,000 - $200,000) 3.8% Medicare tax owed $1,140 ($30,000 x 3.8 percent) AGI is $30,000 over the $200,000 limit for an individual, so the tax is assessed on only the $30,000 not the full investment gain of $110,000. What is also TRUE about this tax? The tax was never introduced, debated, or reviewed until just prior to passage. A separate tax (0.9 percent on high earning taxpayers) is also being implemented against “earned” income to also help fund Medicare. The National Association of Realtors opposes these taxes.

Sandy victims still have to pony up for property taxes

NEW YORK - Unless Mayor Bloomberg and City Council realize there’s a problem and come to some agreement, City Hall won’t be giving any Sandy refugees a break on their January property tax bills. Property taxes are based on the building’s condition on the “taxable status” date of Jan. 5. If your home has disappeared and the Finance Dept. figures that out, you may get a tentative assessment on Jan. 15 that reflects just the land where it stood — and it would be up to you to file an application with the Tax Commission for a discussion about the remaining value of your sandy land. But when you rebuild, one expert advised that homes and small buildings will get a new and higher assessments. Home assessments will be based on about 6 percent of their construction costs, while four-to-ten unit buildings will have a new assessment based on 15 percent. “Their assessments have been low and capped for a long time, and now they will have a new starting point,” said the tax expert, who spoke on the condition of anonymity. Efforts to reach Finance were unsuccessful and a request to the Mayor’s office was not returned. *** In Breezy Point, where 111 small homes and cottages burned while surrounded by flood waters, a co-op corporation owns the land and collects taxes within the maintenance charges. According to Finance records, the co-op has a market value of $299,324,265 and an assessed value of $16,707,765 and has a yearly tax bill of $3.1 million. Roughly $775,000 is due Jan. 2. In the last two months, several properties have sold for amounts ranging from $320,000 to $640,000. Melissa Carrington, of Rockaway Properties, said one of her listings had to be taken off the market because the owner said it was now “unsellable.” *** Ofer Yardeni and Joel Seiden, of Stonehenge, have bought the apartment building at 103 E. 86th St., right off Park Avenue, for $76 million. The price equates to $1.575 million for each of the “huge” 48 apartments, or, as Yardeni said, $850 a square foot each of its 90,000 square feet. The three-, four- and five-bedroom apartments have fireplaces, and the five current vacancies will be gut-renovated and rented for $90 to $100 per foot, Yardeni said. “There are almost no luxury rental buildings left on the Upper East Side,” Yardeni noted, as most are being turned into condominiums. According to broker Aaron Jungreis, of Rosewood Realty, it didn’t take much effort to sell the off-market deal. “Ofer is very reliable, and it was a one phone call deal,” he said.

N.J.'s local tax bills keep spiraling upward

NEW JERSEY -- Ted Marvel pays $4,900 in annual property taxes on his 1,000-square-foot home in the heart of Collingswood. In fact, his monthly tax bill - $407 - is starting to rival what he pays in principal and interest on his mortgage. Said Marvel: "They're going to meet soon." In the new millennium, New Jersey's property taxes, the highest in the nation, are exploring new heights. "It's astronomical," said Marvel. "It's crazy." That, too, his Garden State neighbors affirm. Even as incomes have dropped (4.4 percent), and overall taxable value has fallen in a third of the towns, an Inquirer analysis showed that from 2000 to 2011, average tax bills in Burlington, Camden, and Gloucester Counties rose 44 percent. And that's adjusted for inflation. The average bill jumped from $3,964, to $5,691.

County appraiser experiences dogs, arguments and scenery in the field

Chelan County appraiser Dave Oliver talks with property owner Charlene Anderson as he works on the on-site appraisal of the property in the Tarpiscan, south of Malaga. During visits, he walks around and sees if anything has changed significantly in the four years since a county appraiser last examined the property in person. Numerous factors determine property values A visit by an assessor is just one of several factors that determine property valuation. Other key factors are voter-approved levies, which may increase property taxes; and market analysis, which may or may not increase property taxes. “The market really is the driving force behind whether your valuation is going up or down,” said Deanna Walter, Chelan County assessor. Property values are based on market neighborhoods, which are areas in which homes are reacting to the market in similar ways. She provided a couple of examples, with both being in areas with no new voter-approved levies. In a neighborhood where values go up, each property owner’s levy rate would go down. And if neighborhood values are going down, levy rates would go up. However, in both cases, taxes won’t necessary go up or down because each property owner in the county must still pay a proportionate share of taxes. For tax purposes, the best place for a homeowner to be in the market is in the middle of the pack, Walter said. That’s when the homeowner’s property values stay about equal to those in the rest of the county. Then everyone shares equally in any increases or decreases in property taxes. In that case, property taxes usually remain about the same from year to year. One of the worst places to be is in a home that has increased in value when most other homes in the county have stayed the same or decreased in value. In most cases that homeowner would see an increase in property taxes. Walter said homeowners need to know that their assessed valuation is based on sales from the previous year, which impact taxes for the following year. To appeal a tax assessment, homeowners can download a form off the Chelan County assessor’s website, or pick up a form at the office in the courthouse. The assessor’s office also has a page on its website with answers to frequently asked questions. That can be viewed at co.chelan.wa.us/assessor. Total value of all taxable parcels: $8.66 billion Total taxes brought in annually (2012): $90,045,802 Total number of taxable parcels in the county: 51,000 In Chelan County, 88 percent of the land is in state or federal ownership, meaning it is exempt from property taxes. The remaining 12 percent of land is broken down as: • 83 percent residential • 13 percent commercial • 4 percent agricultural Sources: Chelan County assessor and treasurer Douglas County, by the numbers Total value of all taxable parcels: $3.68 billion Total taxes brought in annually (2012): $41,104,380 Total number of taxable parcels in the county: 25,752 In Douglas County, 15 percent of the land is in state or federal ownership, meaning it is exempt from property taxes. The remaining 85 percent of land is broken down as: • 61 percent residential • 3 percent commercial • 36 percent agricultural WENATCHEE — Dave Oliver never knows what’s going to happen when he approaches a piece of private property in Chelan County. He could be met by dogs: “One time I had a dog leap off the porch at me, going 100 mph,” says Oliver, a county appraiser. “It kind of made me upset; the people knew I was there, too, because they’d seen me drive up.” He could be greeted by an angry homeowner: “If someone tells me to get off their property, I’m going,” he said. “If I get a chance, I will tell them that I will estimate the value of their land from a distance but that may or may not be to their advantage.” But most of the time, he finds homeowners friendly and courteous when he knocks on a front door, or he finds the property owners not at home. In that case, he sticks a business card in the door jamb. Either way, he then walks around and sees if anything has changed significantly in the four years since a county appraiser last examined the property in person. Oliver is one of eight appraisers in Chelan and Douglas counties who examine residential property. They are foot soldiers in the collection of information that helps determine how much residents pay in property taxes that fund schools; fire districts, library, hospital and cemetery districts; along with weed, pest and irrigation services. An appraiser for six years and a banker for 27 years before that, Oliver estimates that he spends 10 to 20 minutes at each developed property. He’s looking for new additions, such as garages and permanently affixed out-buildings; and the condition of the buildings so he can put an accurate depreciation measure on it. He takes into account new exterior paint or vinyl, and new roofs. He pays no attention to landscaping, fencing or the interior of homes. Those are not part of his appraisal process. This fall and winter,Oliver and three other residential appraisers are working the southern part of the Chelan County, south of Orondo Street and into the Colockum. They are also working in the Cashmere area. Each appraiser is responsible for about 3,000 residential parcels. Oliver said they expect to finish those by late January or early February. After that, they will spend about two months looking at sales activity in the evaluated area for the past year, then they will use that data to value each property. After new valuations are mailed out in late May, the appraisers stay in the office and take questions from the public. Next, in the summer, they evaluate new construction throughout the entire county. Then, it’s fall and the in-person residential appraisals start over again, but in a different part of the county. In the fall of 2013, that will be north Wenatchee, Sunnyslope, Monitor and Entiat. Oliver says the hardest part of his job, in addition to dogs, is finding improvements that may be on property that he has to reach via long dirt roads and up canyons. He also finds it hard when homeowners challenge why he’s there. “They can be kind of chewing you out for what they perceive is big government,” he said. “I try to just listen and give them information about the process.” What he likes best about his job is the independence, and he likes chatting with friendly people. Once in a while, he said, someone will invite him in for a cup of coffee. He said he always declines the offer. He can’t spare the time and he never goes inside houses as part of his job. Oliver said he sometimes feels like a prowler when he’s walking around people’s property, especially when they haven’t answered his knock on the door. He recalled one time when a police patrol car crawled through the area and the officer looked him over. “He saw my county car and kept on going,” said Oliver, who added that he was pretty sure someone called authorities about his presence. He’s relieved that no one has ever ordered him off their property at gunpoint. He did, however, have to appraise a piece of property one time that was owned by a man who had sent a threatening letter to the assessor’s office. The man said he didn’t want anyone coming on his land. Chelan County appraiser Dave Oliver makes notes about a property he is appraising in the Tarpiscan, south of Malaga. Oliver was prepared to take a sheriff’s deputy with him until he realized he could see the man’s property well enough for an appraisal from a nearby bluff. Oliver, 64, hopes to retire from the appraising job in a year or two and expects to do some traveling with his wife, Gina. Still, he said, he’ll miss the work that has taken him to places in the county he never knew existed. “It’s been an eye-opener on the nature of the county,” he said. “There are some real pretty areas and I’ve seen lots of wildlife. Just the other day, I saw a bear and a deer on the road. That was something you’d never see from a desk job.”

New Jersey storm-hit areas may see property tax hikes: Christie

New Jersey's towns badly hit by superstorm Sandy may raise property taxes to finance their rebuilding efforts, Governor Chris Christie said on Wednesday.

A 2 percent state cap on annual increases can be ignored by local governments if there is a natural disaster, he said in an interview with CBS radio.

If towns "need to spend some money to get themselves going," a property tax is possible, Christie said.

Christie has campaigned for months on a "Jersey Comeback," a plan that includes tax cuts to boost the state's shaky economy. Earlier this week, he said he would wait to see what Sandy's impact on local finances would be before deciding whether to press ahead with more tax cut requests, local media reported.

Areas badly ravaged by the storm, which tore through the U.S. Northeast at the end of October, will need repairs in housing, businesses and critical infrastructure systems like transportation.

The federal government and insurers are expected to pay for many recovery costs, but the reimbursement process can be long.

Local governments, whose funds are stressed by immediate damage repair costs, are also losing sales taxes and other revenues.

New Jersey, the seventh-largest state economy, has not yet provided estimates on economic damage by the storm, but Christie said he hoped to have a figure by the end of the week.

Neighboring New York State plans to ask the federal government for $30 billion in disaster aid to help with the recovery for New York City, Long Island and other devastated areas.

In February, Christie proposed a 10 percent across-the-board income-tax cut. The Democrat-led Legislature cut a deal with Christie for a plan to provide property-tax credits on residents' income tax returns for those earning less than $400,000 a year.

But state lawmakers, concerned about lagging revenues, didn't include the proposed cuts in the $31.7 billion budget for fiscal year 2013, which the governor signed in July.

Property taxes

Oklahoma considers ending a property tax that costs airlines, utilities and pipeline companies $50 million annually for software, patents, leases and other non-phsyical property. Oregon may eliminate real estate transfer taxes. In Ohio, 194 school districts have tax levies on the ballot. Milford Township, Mich., outside Detroit, considers a $190,000 tax hike for a three-acre skate park.

Districts study effect of River City Casino tax settlement

The Hancock Place School District and the Lemay Fire Protection District will have to return some tax money to the River City Casino.
The recent settlement of a property assessment dispute between St. Louis County and River City Casino for 2010-2012 could force the refunds.
For 2010 and 2011, the casino paid under protest a combined $12.4 million real estate taxes to the county. Under the settlement, River City Casino will be credited with $9.5 million and will be refunded about $2.9 million. The 2012 taxes have not been collected.
The settlement avoids an appeal to the State Tax Commission.
Hancock Place and Lemay officials are not sure how much they might have to give back. The districts won't have to write any checks, but the county will deduct any amount from the 2012 taxes.
The Lemay district's board of directors will have some meetings in the next couple of weeks to discuss the potential payback.
“We're figuring out what's going to happen,” said Jerry Schloss, the district fire board treasurer. “We'll need to meet with the county and figure out the numbers.”
Before the settlement, the real estate assessment on River City was $60.4 million for each year of 2010-2012. After the settlement, the real estate assessment for each year is $56.7 million, about $3.7 million less.
Before the settlement, the personal property assessment was $26.9 million for 2010, $27 million for 2011 and $26 million for 2012. With the settlement, the assessment is now $19.2 million for 2010, $23.2 million for 2011 and $19.2 million for 2012.
Schloss declined to speculate on how much the district might lose. The casino brings in about $1 million annually to the fire district. Lemay has a $2.5 million budget.
The biggest concern for Hancock Place is the 2010 taxes because of an agreement with the casino that started in 2011.
“Right now, I don't want to speculate if we'll have to give anything back,” said Paul Northington, Hancock's director of finance and business operations. “I can say it won't affect our 2012-2013 budget.”
Hancock Place is in better shape than many other taxing districts because of an agreement between the St. Louis County Port Authority and Pinnacle Entertainment.
The port authority, which leases the land for the casino, made an agreement that guarantees Hancock Place an annual minimum of $4.3 million in taxes from River City. The agreement started in 2011.
Hancock Place's 2012 budget is $16.3 million.
Still, Northington was pleased with the settlement.
“Nobody liked the uncertainty,” Northington said.
The St. Louis County's Assessor's office estimated River City Casino will pay about $7.5 million in property taxes for 2012.

Toronto homeowners face property tax hike after home values gain 22.8%

TORONTO — The average value of Toronto homes has risen 22.8% since 2008 and property taxes could rise as a result, according to the latest assessment by Ontario’s property appraisers.
The report released Friday by Ontario’s Municipal Property Assessment Corp. said property owners will see an average assessment increase of 5.5% in each year for the next four years as it phases in the increases.
“Residential property values have increased by an average of approximately 22.8% in the City of Toronto since 2008 when the last assessment update was delivered,” said Joe Regina, municipal relations account manager in MPAC’s Toronto office.

Filing of property tax appeals hits a 6-year low, Only 1,422 challenge assessments in 2012

FLORIDA -- The number of petitions filed in appeal of assessed property tax values are at a six-year low in Lee County, according to Clerk of Court records.

In a county with more than 600,000 properties, only 1,422 have had their values appealed in 2012, according to Clerk of Court records. About three times as many petitions were filed in 2008, with 4,264 property owners refuting their values at end of the real estate boom and 2120 filed last year.

“It’s a phenomenal record,” Property Appraiser Ken Wilkinson said. “I would be willing to bet we have the best record in the state.”

The vast majority of property owners who walked into Wilkinson’s office after receiving their assessment in August, he said, had questions about homestead exemptions.

The Value Adjustment Board consists of five members, including two county commissioners, a commission appointee, a school board member and a person appointed by the school board.

Attorneys and property appraisers sit as special magistrates at hearings, in which property owners contests their appraised values.

Wilkinson’s office gave Brian McGloin his homestead exemption back after he filed a petition with the Value Adjustment Board.

“They just got back to me and said they made a mistake, ‘Your homestead is back in effect,’ ” McGloin said. “That’s all I wanted. I was complaining about the assessment, but I really wanted my homestead back.”

McGloin lives in Cape Coral, which saw some one of the area’s biggest increases in taxable value at 3.82 percent. Countywide values dropped by 0.2 percent.

But not everyone has settled their dispute.

Another Cape Coral man, Richard Kistner, said the property appraiser valued his home at $125,000 this year after he paid $65,000 for it in 2010.

“The $65,000 was the MLS price on the open market. This wasn’t a closed door deal,” Kistner said. “When I asked why they weren’t limited to just 3 percent (increase) they said on first-time sales they had no limit.”

“To me, this whole thing stinks. Its become stupid,” he said.

Wilkinson said Kistner and others like him will have their disputes reviewed again by higher-ups in his office, before they make it to the Value Adjustment Board.

“Often times, if it’s on the first line, the analyst who did the work, they might not be able to justify an adjustment,” Wilkinson said. “Further getting into it, that may expose itself and we have no problem with making an adjustment.”

Propertyowners had until Sept. 14 to appeal their values. Hearings will start Oct. 15.

The Clerk of Court anticipates having all the hearings finished by January, Chief Operating Officer Linda Doggett said. In previous years, she said, hearings have lasted into the spring.

“It’s probably not going to take as long as it has in the past,” Doggett said. “As property values are down, not that many people are complaining about their tax bills.”

Boat Property Tax Amendment On Ballot in Kansas

Your votes will determine whether it sinks or swims, a yes vote on a statewide ballot issue would allow legislators to change the Kansas constitution, and how watercraft are taxed statewide.
Kansas Wildlife and Parks officials say about 10,000 boats in Kansas are registered outside the state, in order to avoid high tax rates, sometimes 8 times higher than those in surrounding states.
The boat tax rate is determined by 30-percent of the boat's value, times the mill rate for that county.
Three neighboring states – Oklahoma, Nebraska and Missouri – don't have any property tax on watercraft, neither do Texas and Iowa.
Supporters say the amendment would mean lower taxes per individual, but more revenue collectively.
"The idea is to lower that, get more of those folks who have registered their boats outside of Kansas in order to dodge the Kansas taxes, and get them paying some taxes here, so that we all don't have to make up for it," Lake Perry Marina's Mike Stanley said.
Opponents say regulations in Kansas have helped create a strong market for used boats, and that the amendment is being pushed mostly by sports fishermen who want to save money on expensive boats.
The measure needs a majority to pass. It then goes back to lawmakers, who would debate how, and if, they would change the boat tax structure outlined in the constitution.

New Jersey County Boards of Taxation

Most of New Jersey’s twenty-one counties have websites for their County Board of Taxation with a wealth of information for property owners and taxpayers.  While the information provided was accurate at the time of publication, no representations are made for the content of any of the external links provided. 

• Atlantic County
• Bergen County
• Burlington County
• Camden County (contact information only)
• Cape May County
• Cumberland County
• Essex County (contact information only)
• Gloucester County
• Hudson County
• Hunterdon County
• Mercer County
• Middlesex County
• Monmouth County
• Morris County
• Ocean County
• Passaic County (contact information only)
• Salem County
• Somerset County
• Sussex County
• Union County
• Warren County (contact information only)

Groton Long Point Homeowners File Class Action Lawsuit

Ten homeowners with property in Groton Long Point have filed a class action lawsuit against the Town of Groton and town assessor, saying the town unfairly drove their property assessments over the market value, violating state law and potentially causing them to overpay taxes.
The lawsuit, filed Sept. 11 in New London Superior Court, contends the assessments during the most recent revaluation “were not the true and actual values as of the assessment date, but rather were arbitrary, grossly excessive, disproportionate, and unlawful in that they failed to properly reflect the true market value of said properties.”
Court injunction sought
It contends the town used an adjustment factor in Groton Long Point that it did not use elsewhere, that this drove values up 35 percent in the subdivision and that it added to the grand list in Groton.
The lawsuit seeks a court injunction declaring the 35 percent increase void, reducing the assessments to their proper value and reimbursing the homeowners for overpaid taxes.
The Town Council is expected to receive a briefing on the lawsuit in executive session during its meeting at 7 p.m. today in the Town Hall Annex.
The suit said land values fell in every part of Groton except in Groton Long Point, where they went up 5.1 percent.
Ten homeowners
The suit was filed by the following homeowners: John P. and Mary B. Tuohy, of 60 East Shore Drive in Groton; Robert and Yola Feery, of 71 Kingswood Drive in South Glastonbury; David W. Nickolenko, Sr. and Charlene J. Nickolenko, of 14 Burrows St., in Groton; James J. and Linda A. Falcone, of East Longmeadow, Mass.; Louise H. Fisher of Norwich; and Betsey F. Amador of Rancho Palos, Verdes, Calif.
Three own property on East Shore Drive. Others own property on Beach Road or Burrows Street.
The homeowners are suing on behalf of all who own residential property in the subdivision; it could apply to 620 properties with residential buildings.
Groton hired the firm Tyler Technologies, Inc. last year to handle the revaluation for the assessment year starting Oct. 1, 2011.
Foreclosures and Short Sales
The lawsuit said the assessor, Mary Gardner, based on a recommendation from Tyler, excluded certain sales in Groton Long Point when determining property values – including estate sales, foreclosures, ‘short sales’ – but did not exclude them when looking at other parts of town.
The suit also contends that the assessor applied a “1.35 adjustment factor” in Groton Long Point, which it did not apply elsewhere, increasing their value.
Residential building values in the subdivision went up 14.6 percent after the revaluation.
Other neighborhoods
By comparison, the suit listed these changes in building values elsewhere: a 3.8 percent increase in Old Mystic-River Road, a 1.6 percent increase in Center Groton, a .3 percent increase in Mystic Village and Old Mystic, and a .8 percent increase in Mumford Cove.
Values in Noank Village fell 1.1 percent, the suit said.
The suit said the “adjustment factor” in Groton Long Point added $32 milllion to the grand list, or $700,000 in additional property taxes for the town.

Initiative roundup: States split on tax hikes

When voters cast their ballots across the country on November 6, they’ll also have the chance to decide on a gamut of state-level ballot initiatives. Given most states’ fiscal woes, many of these measures will be tax hike propositions, but there will be other noteworthy issues as well. Human Events will examine some of the more substantial tax-related initiatives. We’ll come back in the following weeks to highlight other measures.
Out of all ballot initiatives this fall, California’s menu of propositions is most wide-ranging. Three out of the state’s 11 propositions are tax hikes: Proposition 39 would increase taxes on multistate businesses in California. Propositions 30 and 38 would each raise sales and income taxes, their proponents say temporarily, to fund schools.
Prop 39 would level the playing field between in-state and out-of-state businesses in California, but it wouldn’t necessarily be any fairer.
The current law levies lower taxes on multistate businesses that operate in California with property and payroll outside the state. Rather than consider giving the in-state businesses a break, the proposition’s main supporter, Silicon Valley billionaire Thomas Steyer, would have taxes raised on the out-of-state companies that have customers in California.
A total of $550 million per year of the high tax’s revenue would fund projects that create energy efficiency and clean energy jobs in California, according to the initiative’s language.
As for the other two California tax hike propositions, there is a duel raging—both purport to fund schools but appear, upon closer inspection, to be little more than political jockeying between Gov. Jerry Brown, backer of Prop. 30, and education advocate and former federal prosecutor Molly Munger, who supports a rival initiative, Prop. 38.
Prop. 30 originated with Gov. Brown and would change the California Constitution to raise sales and income taxes and put the revenue toward K-12 schools and community colleges. Prop. 38 would direct an estimated no-strings-attached $10 billion to classrooms next year, as well as alter the school finance plan. Prop. 38 would create a fund specifically for classrooms that the state legislature would not be able to touch. The unions, including the California Teachers Association, have gotten behind Brown’s Prop. 30, which would not create a separate, no-strings fund for classrooms.
Lisa Snell, education policy expert at the Reason Foundation, finds this puzzling. Because the biggest expense in a classroom is the teacher, the lion’s share of Prop. 38’s revenue would go to teachers, something unions ostensibly would prefer. The apparent real motivator, she says, is “political dealings that take precedent over what would be best for their members and the kids. If they were really for the kids and the teachers, you’d think they would back the proposition that’s, on its face, more advantageous for the kids and the teachers,” she said.
The state legislature passed Brown’s 2012-13 budget, which he wrote as if a November affirmative vote was a done deal on Prop. 30’s revenue increases and were available for the state budget. That has enabled him and his union backers to campaign for his proposition with the message that if voters don’t pass it, K-12 and higher education will lose $6 billion.
Florida
The Florida legislature unanimously passed two initiatives for tax breaks for service members and their spouses in March. Amendment 2 would ease property taxes on combat-disabled veterans over the age of 65 by discounting the ad valorem tax on homestead property. Amendment 9 would do the same for the spouses of fallen military service members who died while on active duty.
The amendment also includes the same homestead tax exemption for the spouses of firefighters and police officers who died performing the duties of their employment.
More exemptions for homesteaders: Amendment 5 would give all first-time homesteaders an exemption at the rate of 50 percent of the national median home price.
New Hampshire
New Hampshire residents will vote on a constitutional amendment that would ban the levying of any new personal income taxes in the state.
The proposed measure, Constitutional Amendment Concurrent Resolution 13 (CACR 13), would add this clause to the constitution: “No new tax shall be levied, directly or indirectly, upon a person’s income, from whatever source it is derived.”
New Hampshire already doesn’t have a personal income tax at the state level, but proponents of the ballot measure believe the amendment would be an important safeguard against any changes. In January, the state House Majority Leader D.J. Bettencourt touted the proposed amendment as a “strong and unmistakable message to our citizens and to our business community that we are going to hold firm the New Hampshire advantage of no personal income tax.” Detractors worry that the language is too vague and may put excess limits on the state government’s sources of revenue.
Michigan
The Michigan Alliance for Prosperity (MAP) is sponsoring a ballot initiative that would require either a two-thirds majority vote in the legislature or a statewide vote before raising any state taxes. MAP raised $1.89 billion in 2012 to campaign for the initiative.
Michigan Gov. Rick Snyder has come out against it. On his website, he calls it “a bad idea for our state.” He claims that the two-thirds vote would be necessary not just for tax increases, but for tax reform of any sort. “If the two-thirds amendment would have been in place a few years ago, … [w]e couldn’t have taken the steps we did to improve Michigan’s business climate to bring more and better jobs to our state.”
In the Bureau of Labor and Statistics Jobs Report for August, Michigan had an unemployment rate of 9.4 percent, lower than the 10.4 percent Michigan held before Snyder signed an eight-bill tax reform package last May. Michael LaFaive, director of fiscal policy at the Mackinac Center, a libertarian think tank, thinks that’s a moot point. If the proposed amendment had been in place last year, “a tax reform such as the one Gov. Snyder put through would have still been plausible,” he told Human Events.
Indeed, the language of the proposed amendment does not require a special vote for all tax reform, just increases. The two-thirds vote might have nixed the tax hike in last year’s deal, but the budget gaps could have been filled in other ways. One option would have been to cut costs, “which is something the Mackinac Center would support,” LaFaive said.

House Prices in Italy’s Tourist Spots Fall Amid Recession, Taxes

 

House prices in recession-hit Italy’s tourist resorts such as Capri fell more than in the biggest cities this year as investors grew concerned about the economic outlook and higher property taxes, a research institute said.
Prices of residential properties in 31 resorts across the country fell an average 4.4 percent in the 12 months through September, the Bologna-based institute Nomisma said in an e- mailed report today. That compares with a 3.4 percent decline in Italy’s 13 biggest cities, the report said.
“The severe fall in Italian and foreign demand prompted the sellers to review their asking prices,” the report said. As Prime Minister Mario Monti introduced a new property tax last year, expectations of more levies on real estate “pushed some owners to shorten the timing of their de-investments and this led to a downward trend that doesn’t seem” likely to end in the short term, Nomisma said.
The euro region’s third-biggest economy will shrink 2.4 percent this year as rising joblessness and Monti’s austerity drive weigh on demand, employers’ association Confindustria estimates. The government matched that projection in its growth forecasts released on Sept. 20 as Europe’s second most-indebted economy grapples with the sovereign-debt crisis.
Some of the biggest decreases in prices of resort properties were recorded on the island of Capri, the ski destination of Cortina D’Ampezzo and the village of Positano on the Amalfi coast, where prices fell 5.7 percent, 6.4 percent and 7 percent respectively, today’s report showed.
Home sales in the second quarter posted the biggest drop since data collection began in 2004, the Finance Ministry’s Agenzia del Territorio said on Sept. 27. A property levy, marking the return of taxation on first homes after four years, “won’t be an incentive for the market” in coming months, the agency said in a separate report on June 19.
Prices may keep falling in coming months amid a “widespread perception that the investment in real estates is the primary target of any budget adjustments,” Nomisma said.