Appraisal Systems Inc. (API) recently released the township’s reassessment results showing the value of Moorestown property has dropped by more than $800 million since the township’s revaluation in 2007.
When the township performed the last revaluation, the numbers were determined at the peak of the housing market, the township’s tax assessor Dennis DeKlerk reported in September.
ASI’s results for 2013 show the township’s ratables at approximately $3.9 billion. ASI, which also performed the revaluation in 2007, reported the township’s estimated values for 2012 to be approximately $4.6 billion. In one year, the township’s ratables decreased by approximately $700 million.
DeKlerk said a reassessment uses previously constructed data to determine values while a revaluation’s data is constructed from scratch.
To save the township from cutting into the reserve of uncollected taxes, the township decided it was time to perform a reassessment. According to DeKlerk, when a resident filed for a tax appeal, they had a “good case,” and the township does not collect money on the loss.
The 2007 revaluation was established for 2008 taxes. Since then, the township has lost $4,433,822 in tax appeals, the township’s financial officer Tom Merchel said.
“We expect to stop losing at least $600,000 to $800,000 per year, and, starting in 2014, we should be able to save approximately $500,000 in the budget,” Merchel said.
But many residents are concerned the reassessment did more harm than good.
Township manager Scott Carew said some residents’ taxes went up, and some went down.
According to Carew, approximately 58 percent of residents will witness a decrease in their taxes. Out of the 58 percent, approximately 12 percent will see a decrease of $250 or less. Approximately 42 percent will see an increase, and out of the 42 percent, approximately 12 percent will see an increase of $250 or less.
Carew said the idea behind performing the reassessment is to try and get all property values in town “based on current market positions.”
Merchel said if a resident’s property value is less than the township’s average value, the township still has to collect the same value in township-wide taxes.
“As far as the reassessment goes, the values are still not finalized yet,” Merchel said.
The final numbers were due for submission on Feb. 15. Before that time, numbers are continually changing, Merchel said, but the township will see future savings.
