West Orange Revaluation Begins: Will My Property Taxes Go Up?

WEST ORANGE, NJ — Earlier this year, West Orange Mayor Susan McCartney warned that a “perfect storm” of rising expenses, budget crunches and new fees was about to hit the township. One of those stormfronts has now arrived: the town’s anxiously awaited property tax revaluation.

In August, the town began sending out a letter to local residents about the revaluation – the first West Orange has seen in nearly 12 years. The program has been ordered by the Essex County Board of Taxation and approved by the New Jersey Division of Taxation. It will become effective for the 2025 tax year.

The short story? West Orange homeowners may see the value of their property change – and their tax bill with it. Whether their burden rises, falls or remains the same will depend on several factors, however.

The West Orange tax assessor office has released a question-and-answer brochure about the revaluation, which can be seen online here.

West Orange residents will be notified by mail about the new assessed value of their properties when the revaluation hits the finish line, with letters expected to be sent in “the late fall of 2024.” Any property owner who is seeking more information can contact Professional Property Appraisers at 1-866-957-1388.

Here’s what you should know in the meanwhile.

WHAT IS A REVALUATION?

According to the New Jersey Treasury Department, a property revaluation is a program undertaken by a municipality to appraise all real property within the taxing district according to its "full and fair value."

The revaluation process is “revenue neutral,” meaning that no additional taxes will be raised for the town, school district or county as a result.

"A revaluation program seeks to spread the tax burden equitably within a municipality," the NJ Treasury Department states. "Real property must be assessed at the same standard of value to ensure that every property owner is paying his or her fair share of the property tax. For example, two properties having essentially the same market value should be paying essentially the same amount in property taxes."

Although almost all properties' values rise during a revaluation, it doesn't necessarily mean that all property taxes will increase, state officials say.

"You might now be thinking, 'How can my assessment increase and my taxes not go up?'" state officials explain. "Remember, assessments are merely a base used to apportion the tax burden. The tax burden is the amount that your municipality must raise for the operation of county and local government and support of the school system."

During a revaluation, assessors visit individual homes and conduct both inside and outside inspections. The inspections in West Orange will begin in September and continue until August 2024.

Property owners who disagree with the eventual assessed value of their homes can arrange an informal hearing or file an appeal with their county board of taxation.

‘THE PERFECT STORM’

In July, Mayor McCartney issued an update on an upcoming property tax increase and a separate sewer fee hike – which are also happening at the same time as the revaluation. It all adds up to the “perfect storm,” she reported. Read the full letter here.

• See Related: West Orange Council Adopts Town Budget, Tax Hike Approved (VIDEO)
• See Related: Sewer Fees Increase In West Orange; Here’s How Much You’ll Pay

“West Orange’s municipal tax history over the last two decades has been guided by a single mantra: Dollars are best left in the pockets of its taxpayers than in the township’s savings, known as reserves,” McCartney wrote.

“So, over those years, when costs rose faster than taxes and other revenues, the difference was covered by spending its reserves,” the mayor said.

McCartney continued:

“While over the last 14 years, the township’s municipal taxes have risen 30%, its expenses have risen 45%, the difference covered mostly by applying reserves (township’s savings), keeping taxes from going up. The downside to this is that savings decline, eventually to the point when expenses can no longer be covered. This year we were greeted by the perfect storm with a loss of $5 million in COVID aid and an increase of $5+ million in expenses without any appreciable ability to apply reserves to offset the 16.2% deficit.”

The recent sewer fee hike spurred some complaints on social media from West Orange residents, who said their new bills don’t match the number of bedrooms in their house. Those residents may get a chance to set the record straight as the revaluation process plays out.

“Later this year, the tax assessor’s office will begin sending representatives to inspect every township property in anticipation of a total property revaluation in 2025,” McCartney said. “During this inspection, all residential properties’ number of bedrooms will be confirmed, and sewer bills will be credited or charged for any discrepancies discovered in the current record on file.”

In the meantime, questions regarding bedroom counts will be addressed by the administration, McCartney said. Residents can contact the tax office at 973-325-4075 with inquiries.

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