Morristown Tax Revaluation Delayed By Inspection Slowdown

MORRISTOWN, NJ — Delays in the process have pushed back the estimated completion date for the town's first property revaluation in nearly 20 years, which is required to calculate tax bills, until the end of the year.

The Morris County Tax Board ordered the revaluation, and it was anticipated to be finished by the end of 2022. However, delays in inspections made it nearly impossible to meet that deadline.

After hearing from the township and Appraisal Systems, the company performing the inspections, the director of the Division of Taxation approved the extension on Jan. 5, according to Morristown Tax Assessor Kevin Esposito.

"The board was a little reluctant granting our extensions because they thought we may have been dragging our heels, not wanting to do the reevaluation," Esposito said.

Inspections began later than planned because Morristown officials wanted to ensure that all residents understood what a revaluation entailed and what to expect, according to Esposito.

"While we were, slow to the draw, if you will, to begin the inspection process. There were reasons for that to make sure that the comfort level existed for our residents," Esposito said.

With the inspections beginning much later than anticipated, there was not enough time for resident appeals to be filed and heard before the deadline for Morristown to submit property assessment lists to the state on Jan. 10.

"The statutory data of assessing is Oct. 1 of the pre-tax year, and then the list is required to be filed on Jan, 10 of the current year. As of Oct. 1, we were really only beginning the inspection process," Esposito said. Commercial properties began in September and then in October we began the inspection process primarily because our community, our elected officials and the administration wanted to make sure that we took every step necessary in notifying the public.

With the new extension officially approved, the town and Appraisal Systems, Inc., the contractor performing the revaluation, now have the rest of the year to complete the work, and Esposito believes the appraisers will finish on time.

This revaluation is the first since 2004 in the 20,000-person community and is coming after years of major redevelopment projects throughout the town.

Since the last revaluation in 2004, the market in Morristown has changed significantly. As a result, the Morris County Board of Taxation and the New Jersey Division of Taxation have mandated another to identify which homeowners will be paying higher property taxes to the state and county in 2023 because their homes have appreciated in value.

Neighboring municipalities pushed for the revaluation, claiming the town was not paying its fair share of regional taxes.

"We've had a very short supply of houses in Morristown for a long time. Things are, I'm not going to say changing, but I do see homes when they come to market, in some cases, they're not selling immediately where they were a year ago at this time... My goal as the assessor is to get the numbers as closely and accurately reflective of the market. So if the market is trending downward this year, we're going to be able to have that benefit for our residents," Esposito said.

Esposito estimated that 50 percent of Morristown properties have already undergone inspection. The extended deadline won't slow down the revaluations, and all inspections ought to be finished by the end of the summer.

Because of the extension, Morristown residents will have to wait longer to learn how the revaluation will affect the town's tax burden. According to Esposito, letters will start to be sent out in September.

The revaluation process does not imply that all residents and business owners will face higher property taxes, according to town officials; rather, the new tax rates are based on townwide averages.

Residents whose property values have risen faster than the town average can expect higher tax rates, while those whose values have risen more slowly can expect lower tax rates. Residents whose properties have increased in line with the town average should not anticipate an increase in their tax rates.

According to Esposito, the town has taken several precautions to ensure everyone's safety, including background checks and the ability to conduct virtual interior inspections for those who are hesitant to let an inspector in.

"We have had 15 property owners who have taken advantage of the virtual inspection option which equates to just below 2 percent of the property owners who have facilitated an interior inspection," Esposito said.

Each revaluation includes an exterior inspection, which includes measurements and photographs of the property's exterior, as well as an interior inspection, which necessitates entry into each building. Inspectors will determine the value of a property by inspecting the site dimensions and looking for certain quality improvements, Esposito said.