Town Expects $1.6 Billion Increase in Property Values After Revaluation

Editor's Note: This article initially stated that property tax values were expected to increase by $1.6 billion and that the tax rate would go up as a result of the revaluation.  It has been corrected to reflect that property values are expected to increase and that the tax rate will go down as a result of the revaluation.

Total property  values in Hillsborough are expected to increase by $1.6 billion, after the completion of a three-year property revaluation process mandated by the Somerset County Tax Board.

Property owners are expected to receive notices this week from Appraisal Systems Inc., of Morristown, according to Township Committee Finance Chairman Carl Suraci.  The new property values do not increase tax revenue in Hillsborough, nor will the revaluation notices affect February or May tax bills, Suraci added.

"People may be concerned about the notices because some believe the revaluation is done to increase tax revenues," Suraci said via release from Tuesday night's Township Committee meeting. "That is not the case here. The revaluation of all property in Hillsborough does not result in an increase in the revenue for any of the taxing jurisdictions."

The new property values will not begin affecting owners until the third quarter of 2011, and will be reflected in the Aug. 1 tax bill.  In addition, the tax rate is expected to go down in response to the increase in property value, according to Suraci.

The tax burden for property owners is expected to drop from 85 to 82 percent as well, which Suraci attributed to an increase in businesses in town.

"The homeowner's share of the tax burden is reduced from 85 percent to 82 percent, which I think reflects the township's efforts to increase the number of business taxpayers," he said.

The revaluation notices will be mailed in batches over a two-week period, meaning some property owners may receive their notices before other despite living near each other, Suraci said.

Every property owner should receive the revaluation by the end of the year and those who do not have the notice by Jan. 3, 2012, should call Appraisal Systems, Inc., at 1-800-994-1999. Residents with appraisal concerns can set up meetings with the company's appraisers after receiving their notice and should not call the township tax assessor with questions.

"When you receive your letter, do no call the tax assessor's office," Suraci said.  "Appraisal Systems is responsible for all components of the revaluation and they should be your point of contact.  The Tax Assessor cannot help you at this point in the process."

The Appraisal Systems began the revaluations in 2007, which included full property inspections, after receiving the orders from the county tax board.  The last complete property revaluation occurred in 1983, according to the township.