2014 Jan 21st

Hoboken Tax Revaluation

I’m sure many of you have received a letter in the mail by now from Appraisal Systems, Inc. It gives you the new “fair market value” of your property. If you go to the website of Appraisal Systems, Inc., there is a handy excel worksheet you can use to calculate whether your Hoboken property taxes are likely to go up or down.  Click on the last item in the second section, entitled Hoboken Tax Worksheet (xls file).  Enter your old appraised value in yellow box A and your new value in yellow box B.  The worksheet will calculate the rest for you.  Assuming nothing else changes (like the budget or the tax rate) the answer is in the yellow box on line H.

Lots of people have been telling me they plan to appeal this valuation.  Understand something people.  In a rising market you are very unlikely to win a tax appeal.  You have to show comparable sales for LESS than your new market value.  That is next to impossible in today’s market and the City has a margin of error which they are allowed by statute.  So as my SuperBowl Field Team leader says – “embrace the suck”.

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  1. Anon

    I thought my appraisal was low and was wondering how they came up with it. It came in about 40 k less than I paid in 2008 but I’ve done renovations since then. Also, other sales in my building over the past couple of years support a higher price or at least a value closer to what I paid. I’m certainly happy to be paying less in taxes but I would love to know how they came up with this number considering they were only in my unit for about a minute. There’s an identical unit in my building now on the market for 200k more than my appraised value. Do you think buyers will look this info up and try to bargain?

  2. Andy

    I kind of agree w/ Anon but super happy to have my taxes go down and not to have to pay for a lawyer to do it for me. Any thoughts on whether the city will use the mass confusion to raise the tax and margin out any tax savings we are seeing? You know that those who are getting slammed w/ a big increase in their bill will be appealing for years. It really must have been more unbalanced than people let on if my personal unit can have that much of a swing % wise that is in total tax. Not complaining.

  3. JC

    I remember hearing that margin of error is 10% So, you need to find comps that are 10% below your value for the city to change. Does that number seem correct?

  4. andy

    Lori is certainly correct that your comps need to be less then your target value especially if they are from earlier in the allowable period. You can derive that from the fact that the ‘sales price over time’ chart on their website is swinging upward. This also aligns with Lori’s numbers on her sale reports. the target valuation date was in October I believe. So any comp needs to be adjusted by date.

    In checking lots of the 2014 values my experience was that nearly identical properties in the same neighborhood don’t seem to be valued the same at all.

    One thing that particular caught my eye was that the per square values of houses in the prime Hudson street blocks in many cases was less then per Sq foot values for blocks in the middle of town.

    I also saw cases where a neighborhood had what appeared to be multiple copies of the same exact multifamily and the one that was crapiest from outside was valued the most expensive by wide margin. Of course you can’t totally judge condition from outside but I saw this a bunch of times where there might be three of the same house within a block and it was totally obvious one was in disrepair. They one in disrepair was in most cases was the highest value by a lot.

  5. andy

    Btw.. I am not same Andy as above.. I should have put a last initial in name

  6. Lori Turoff

    Thanks for your comments, folks.

  7. at

    Lori – are you tracking the JC reval at all? Fulop stopped it last year after taking office, but not clear what is happening going forward. market definitely doesnt seem to be pricing the inevitable rise in. (e.g. $1m townhouses with $8000 tax levy are all over the place)

  8. Craig

    I just did the spreadsheet and my taxes are projected to increase by $915. Splendid. And I can’t even contest the new assessment because it’s pretty much on target, if not a little under FMV. So much for the myth that owners of newer construction were going to see a reduction.

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