Lebanon Boro In The News - Hunterdon County Democrat

Posted by M Paradis

August 3, 2007

Tax bills: How high or low do they go?

Thursday, August 02, 2007 By Gene Robbins

Property tax bills went out last week, and there was good news in East Amwell Township, where average tax bills were less than last year. But Lebanon Borough homeowners might’ve done a double-take. Their tax bills went up, on average, by 16.5% — more than $800.

Fifteen of the 22 Hunterdon municipal tax bills that could be calculated show increases averaging 3.5% to 6.8%.

Tax bills on the mythical “average” home vary widely, from $12,477 in Tewksbury to a low of $4,914 in Glen Gardner.

East Amwell’s average dropped $73. A few towns saw modest increases. Califon’s average bill went up just $4, and Glen Gardner’s $14. Holland and Lebanon townships were the only others to have average increases of less than $162.

In eight of the county’s 26 municipalities, the dollar bite increased between $200 and $400. In another eight, the increase was from $404, in Union Township, to $553, in Raritan Township. Lebanon’s $812 average increase easily topped the county’s list.

Tax bill increases in Milford, High Bridge, Lambertville and Delaware Township couldn’t be calculated. Their tax rates hadn’t been certified because their municipal budgets could still be adjusted, depending how the state reacts to their petitions for “extraordinary” state aid.

On Tuesday, the state denied the four’s petitions. Tax rates couldn’t be determined by presstime.

Mayor Mark Paradis could almost be the poster boy for the impact in Lebanon. His home’s taxable value went from $230,000 to more than $550,000 — with a corresponding tax increase of $899.99, he said.

While the bills are a hot topic in the borough, he thinks the governing body over the past year did a good job preparing residents for a hit. “For the most part, everyone I talked to said, ‘We don’t like it but we know you had no choice,’” he said.

The effect of tax increases may be softened somewhat by promised higher state tax rebates, which are estimated to range from an average of $935 in Glen Gardner to $1,380 in Califon.

The amounts will be highest for people with a household income of less than $100,000, with lesser rebates to households with incomes of $100,000 to $150,000 and $150,000 to $250,000. Those making more than that aren’t eligible.

The state is estimating rebates ranging from a low of $626 for a Milford household with an income of $150,000 to $250,000 to a high of $1,656 for a Tewksbury resident with a household income of less than $100,000.

Stockton, Lebanon and Kingwood and Raritan townships had revaluations of property that went into effect with these tax bills, but the revaluations can’t automatically be blamed for higher bills. The intent of a revaluation is to spread the tax burden among taxpayers more equitably, not raise more money.

Raritan Township experienced its first revaluation in 20 years, and many properties had been assessed at those decades-old values. However, a person who bought a newly built house would normally see an assessment close to their purchase price. A revaluation sweeps that inconsistency clean.

Raritan Township Clerk Dorothy Gooditis said she hears — and feels — the pain of her fellow residents. Her 35-year-old house in the Maple Glen development went from $239,000 to more than $465,000, she said, and her tax bill increased almost $900.

But her son, who bought a home in the relatively new Carriage Gate development, saw his taxes decrease by about $1,000, she said.

“A lot of older residents haven’t had their homes revalued in many years,” said Gooditis. “This just tries to get everything fair and evenly distributed, particularly for homes that for so many years were undervalued.”

Mayor Paradis said the revaluation shifted a higher portion of the tax burden from commercial to residential. Owners of condominiums in the Commons were hit harder than most, he said, because values increased so drastically. Taxes climbed even though Borough Council has kept its local share at 11% of the total bill, relatively unchanged since 2002.

“It’s been 10 years since we had a revaluation,” said Mayor Paradis. “We will never wait that long again.”

The state was ready to mail its first homestead rebate checks yesterday. Eligible senior and disabled homeowners, as well as all tenants who filed before June 1, should expect to see checks later this week.

Last year’s maximum check was $75; this year, the average amount to non-senior tenants should be $246, the state said. The first rebate checks to disabled and senior homeowners should also go out this week.

If people haven’t applied for a rebate, the application deadline has been extended to Oct. 15.