Lawrence Township
Lawrence Township
Mayor
Jim Kownacki
Councilmembers
Stephen Brame
Cathleen Lewis
Dr. David Maffei
Michael Powers
What is a Revaluation?
A revaluation is a program
undertaken by a municipality to
appraise all real property within the
taxing district according to its full and
fair value.
Why is there a need for a
Revaluation?
A revaluation program seeks to spread the tax burden equitably
within a municipality. For example, two properties having essentially
the same market value should be paying essentially the same amount
in property taxes. Inequitable assessments result from the following
situations:
A.)
changes in characteristics in areas or neighborhoods
within the municipality and within individual properties;
B.)
fluctuations in the economy (inflation, recession);
C.)
changes in style and custom (desirability of architecture,
size of house;
D.)
changes in zoning which can either enhance or adversely
effect value;
E.)
delays in processing building permits, which delay tax
assessments on new construction
Why is Lawrence Township doing
a Revaluation?
• On February 15, 2011 the Mercer County Board
of Taxation ordered Lawrence Township to
complete a revaluation for tax year 2014.
• Out of the 13 towns in Mercer County only 4 have
not revalued within the last 5 years, they are as
follows: City of Trenton, Ewing, Hamilton and
Lawrence Townships.
• All 4 have been ordered to complete a revaluation
by the Mercer County Board of Taxation.
Effect of Revaluation on Taxes?
Although revaluation will result in an increase of nearly
each individual assessment, it does not mean that all
property taxes will increase. You might now be thinking,
“How can my assessment increase and my taxes not go
up?” 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, local government and schools.
Example of Revaluation Need
and Impact?
Pre-Revaluation
Assessment
Post-Revaluation
Taxes
Assessment
Taxes
Property 1
125,000.00
5,611.25
Property 1
200,000.00
4,489.00
Property 2
100,000.00
4,489.00
Property 2
200,000.00
4,489.00
Property 3
75,000.00
3,366.75
Property 3
200,000.00
4,489.00
Tax Levy
Notes:
13,467.00
Tax Levy
13,467.00
1) Three identical Township Properties and pre-revaluation assessment ratio at 50%
2) All three Properties have the same market value
3) For reasons previously discussed, there are disparities in the pre-revaluation
assessments
4) Post-revaluation assessments reflect fair market value
5) Property 1 has a pre-revaluation over assessment while Property 3 has a
pre-revaluation under assessment
Ask yourself…”How is this
Revaluation going to effect me?”
1. Double your 2013 assessment
2. Does the result from Step 1 reflect the
current Fair Market Value (i.e. Potential
Selling Price) of your property?
3. If answer to Step 2 is YES, then your
taxes after the revaluation most likely
will not change considerably.
Township/County Contacts
Geoffrey Acolia, Tax Assessor 844-7040
Ken Pacera, Deputy Assessor 844-7038
Dave Levy, Deputy Assessor 844-7039
Website: www.Lawrencetwp.com
Marty Guhl, Mercer County Tax Administrator 989-6704
Website: http://nj.gov/counties/mercer/commissions/tax/
Questions and Answers
will follow Revaluation
Company Presentation