Property Tax Reassessment an Issue of Fairness, Garwood Councilman Says

Garwood Councilman Jim Mathieu urged his fellow council members to consider a borough-wide property tax reassessment at Tuesday's Garwood council meeting. 

"If we’re going to have property taxes as the basis for funding Garwood as a municipality, then we have to have an agreement that those taxes be based on a value somewhat rationally related to market value," said Mathieu, pointing to the fact that the borough has not had a reassessment in more than 30 years. "It puts a burden on a small number of properties and subsidizes one set of homeowners and business owners at the expense of another."

Mathieu has frequently brought up reassessment and added that he plans to continue talking to his fellow councilmembers to get them on board. 

"I still have not heard a cogent reason why we should not reassess," said Mathieu. "Go ahead and bring everyone up to market value. Lower the middle rate and have an adequate and fair distribution of taxation. To me, it’s a moral issue. It’s an issue of fairness."

Council President Sara Todisco responded to Mathieu, saying that she had talked to the borough's tax assessor about the issue and the assessor's professional opinion was that the borough should not reassess.

Todisco noted that the borough could not have a "reassessment," but would have to have a full (and more costly) reevaluation, where each property is individually inspected, because it has been so long since Garwood was last assessed. 

Todisco said the assessor reported that reevaluation would come at a cost of at least $200,000. 

"Paid over four years and we're looking at a $50,000 tax increase each year all to get an answer she feels would not change people's taxes that much. She doesn’t see real high taxes going much lower and vice versa. I don't want to spend $200,000 all just to pay for something that, in the end, we say sorry your taxes are staying the same, or dropping a little lower or going up a little higher." 

Mathieu then asked Todisco when she and the assessor felt was the right time to reassess. 

"She thinks we should do it when the other towns in the county do," said Todisco, a response that received laughs from the audience. "She also feels that by going first we would pay more in county taxes."    

Mathieu also added that a reevaluation should go hand-in-hand with the mayor's efforts at encouraging new development along North and South avenues. 

"I don’t see, Mayor, how you can proceed with redevelopment and trying to get new commercial and other tenants and developers to come to Garwood if you don’t have a reassessment," he said. "We are basically letting them know that you’re going to be last ones to party, so we're going to hit you in head with the highest taxes, so you can subsidize those who have not been reassessed in 30 years."

Mathieu added that he purchased his home for $383,000 and it is assessed at $82,500. 

"That bears no relation to reality," he said.

Todisco added that she was grateful that the council was having the discussion. Councilwoman Ann Palmer then suggested the council ask the tax assessor to come to a meeting to answer their questions before they each form opinions on the issue. Council members agreed to invite the assessor to their next meeting.