Monday, November 12, 2012

Hurricane Sandy and 2013 Property Taxes

I received the following email over the weekend from a person named Leigh Maris. The email contains important information pertaining to properties damaged by Hurricane Sandy and the storms effect on property taxes for the coming year.

I don't know if this information is accurate but it seems legitimate and well worth looking into if you or somebody you know, has lost their homes or severely had them damaged by the storm:

Due to the major property damage caused by Hurricane Sandy, many property taxpayers are faced with value assessments that are no longer accurate. There is a provision of law that could lead to corrected, lower assessments, but it must be invoked by a certain deadline as noted below.
Under current State law, property value is assessed based on the condition of the lot and the buildings as of October 1st for the following tax year. In other words, the 2013 property tax bills are based on the value of the property as of October 1, 2012.
However, State law contains a provision which states that a property with a building or other structure that has been destroyed by a storm between October 1st and December 31st can have the assessment reduced to reflect the depreciation in value for that property. The landowner must provide the assessor with notice prior to January 10, 2013. The assessor must then base the assessed value of the property according to its condition as of January 1, 2013.
Only nine weeks remain to provide this notice to municipal assessors.
As for the November 1st property tax bill (fourth quarter 2012), a property taxpayer must pay that bill in full by November 10th to pay the fourth quarter bill. Also, a municipality may pass a resolution that establishes a zero percent interest rate for tax payments made after November 10th.

16 comments:

Anonymous said...

Mike,
Whoever passed this information on to you has done a great service for those members of the community who experienced the kind of damage referenced in the piece you posted. This is the kind of information that the elected and appointed officials in Middletown need to share with the entire community. A township wide mailing and another automated "Storm Update Message" with this information is the correct and ethically appropriate action for our elected officials to take.

Anonymous said...

Mike,
The same information was posted on MoreMonmouthMusings, November 10, by Assemblyman Dave Rible. The tax base will be affected by value reassessments. How well a town is finacially managed or mismanaged will be even more apparent as a result of taxpayers excercising this provision in state law. Here come the budget cuts. How much money do you think TOMSA and Middletown library can loan the Township Committee? I hope Scharfenberger's Economic Development Committee can respond with some out-of-the-box thinking. Is it time for a finance committee, or a strategic planning committee? I hope there is a lot of surplus in the Middletown granary. I also hope that the new Board of Education members are up to the task when it comes time to put together a reasonable budget that takes into account the impact that this storm has had on the tax base for years to come.

Anonymous said...

The following detail about the state law was posted by a helpful blogger on Middletown Patch:

Taxes:

Real property - NJSA 54:4-35.1 - You have until Jan. 10, 2013 to notify tax assessor of material damage to structures on property and request reduced assessment for 2013. The statute says: 54:4-35.1. MATERIAL DEPRECIATION OF STRUCTURE BETWEEN OCTOBER 1 AND JANUARY 1; DETERMINATION OF VALUE When any parcel of real property contains any building or other structure which has been destroyed, consumed by fire, demolished, or altered in such a way that its value has materially depreciated, either intentionally or by the action of storm, fire, cyclone, tornado, or earthquake, or other casualty, which depreciation of value occurred after October first in any year and before January first of the following year, the assessor shall, upon notice thereof being given to him by the property owner prior to January tenth of said year, and after examination and inquiry, determine the value of such parcel of real property as of said January first, and assess the same according to such value. L.1945, c. 260, p. 789, s. 1.

Anonymous said...

The process should be provided with the information. This notce is like dangling a carrot in front of a cart with no horse to pull it.

Anonymous said...

Anon 4:46

Thanks for the details as I don't seem to have the time these days to read Middletown Patch on a daily basis.

Anonymous said...

In Sunday's Asbury Park Press on page B6 (Issue Section)there is an article about a catastrophe tax deduction for Sandy victims that can be taken on your federal tax return. The article is written by John Waggoner.

This information is important also to anyone who has suffered losses.

Anonymous said...

Does anyone out there in Middletown Mike land know what the definition of "structures" is? Does it include damage to seawalls/bulkheads that protect the property from flood damage?

MiddletownMike said...

Anon 12:47

I believe "structure" means your dwelling or other buildings on your property. I am pretty sure it does not mean seawalls/bulkheads that protect the property from flood damage.

The seawalls and bulkheads would be the responsibility of the local or state authorities.

Anonymous said...

Hmm, we are responsible for maintaining/rebuilding bulkheads in Leonardo, not government.

MiddletownMike said...

Well than maybe I'm wrong....

Are these bulkheads part of your property? If so than I would agree, it would be part of your responsiblity but if a seawall or bulkhead is a structure adjacent to or across the street from your property than I don't see how it would be your responsiblity to replace it.

This is just my opinion however, I don't actually know for sure.

Anonymous said...

No, we're not responsible for rebuilding bulkheads and seawalls in Leonardo. In the past the residents themselves have been responsible for their rebuilding their own bulkheads and seawalls.

Bulkheads and seawalls are not structures according to the NFIP.
It may differ according to individual flood insurance carriers, though.

Anonymous said...

So is anonymous 11/14 @9:56 an employee of Middletown or a TC member. Just who is the "we" spoken of here anyway with such "authority ???

Donna Kuntz said...

Anon 11/14 @ 10:53

LOL, thanks for making me chuckle. Seriously I'm not being sarcastic, it's been a very difficult road since Sandy.

"We" = taxpayers.

No, I am not a township employee or a member of the township committee.

The "authority", is knowledge, not authority. Knowledge based on my personal experience and an understanding of my own flood insurance policy, as well as conversations with many of my neighbors who have had to replace their own bulkheads/seawalls at their own expense.



Anonymous said...

Donna, perhaps you should identify yourself and your vast experience, in the first place, when you attempt to speak "with such authority" in the future.

Anonymous said...

I called the Township Tax Assessor's office about a possible reassessment of my damaged property. The woman I spoke with said it was up to the State to decide if this could be done, and they were waiting to hear from the State about it.

If your property was damaged and you feel you might be entitled to a reduction in taxes as a result, you can file an application with the Township, in the event the State does approve it. You can go to the Tax Assessor's Office at Town Hall, or you can call them and have them mail one to you.

Becca@Water Damage Melbourne said...

Ideally, the law should be written so that it is “available” to the public and not just specialist lawyers and judges. Godspeed to everyone!