Decision to File Tax Appeal Not One to be Taken Lightly, Experts Say

Toms River attorney Michael R. Beck had some practical advice for property owners planning to represent themselves in tax appeals before the Ocean County Board of Taxation. Rule number 1. Don't go angry.

"Everyone is mad," Beck said. "They won't help you if you are coming in mad. You are not going to get the same results. Be well dressed. Be kind to the commissioners."

"Don't fight with the commissioners, guys, please, " said state-certified residential real estate appraiser Eric R. Birchler. "He or she is the man or woman who will decide your fate."

Beck and Birchler were two of the featured speakers at a financial seminar Saturday sponsored by the Berkeley Township Taxpayers Coalition at the Berkeley Township Elementary School. The coalition was incorporated in September, shortly after Berkeley residents received their new tax bills, which reflected the first revaluation since 1990.

Assessments for waterfront properties on the mainland and in the South Seaside Park section on the barrier island skyrocketed after the revaluation.

Property owners considering filing tax assessment appeals need to calculate if the move will benefit them. They also need to decide if they will handle the appeal before the Ocean County Board of Taxation themselves, or hire a lawyer and appraiser to do it for them, Beck said.

"When you go before the board, the municipality is your adversary," Beck said. "They are the ones who say 'We did get it right'. You are the ones who will have to present your case before the board. That's really what it comes down to."

Coalition president Samuel J. Cammarato asked the audience what they thought of the Berkeley Township Elementary School before the seminar began. "How do you like this building?" Cammarato said, as audience members murmured their approval. "You people own it."

"I'm sitting in a seat I paid for," one man said.

Property owners must file an appeal with the Ocean County Board of Taxation by April 1.

"It must be in the hands of the tax board and the municipality by April 1," Beck said.

Residents must pay a filing fee based on the assessed value of their property. The fee for properties assessed at over $1 million is $150; properties assessed at $500,000 to $1 million is $100; properties assessed at $150,000 to $500,000 is $25. The filing fee for any property assessed at under $150,000 is $5.

Property owners can opt for representing themselves, or using both an attorney and an appraiser, Beck said.There are advantages to using professionals to handle an appeal, he said.

"When you use an attorney, you don't have to show up," he said. "The attorney can negotiate with the municipal tax assessor. It's quite common for the municipal assessor to reach out in advance. There are so many tax appeals. They are not going to do that if you are prosecuting yourself. They need to move their calendars."

Beck's firm — Hiering, Dupignac, Stanzione, Dunn & Beck — charges a fee of 50 percent of the assessment reduction if the appeal is successful."If you don't win, I don't get paid," Beck said. "That's not good. That's not good at all."

Beck said he usually requires a $1,500 retainer to work on a tax appeal. But Cammarato negotiated a reduced fee on the coalition's behalf. "He asked if we could to it on a contingency basis," Beck said. "My partners said yes we can do it."

Beck said he doesn't do tax appeals without the help of a professional real estate appraiser. "I don't work as an attorney without an expert," Beck said. "I'm not an expert. I really recommend it."

Birchler charges a flat fee of $500 for residents with waterfront homes worth $1 million or more. The fee for non-waterfront homes is $400. The fee includes his time testifying before the Ocean County Board of Taxation, consultations with the homeowner's attorney, the township attorney and assessor, and gathering comparable sales."It's an all-inclusive fee," he said.

Property owners filing an appeal must have examples of comparable sales (comps) prepared before their appeal.  The sales must have taken place in the 18 months up to Oct. 1, 2010.  Sales involving family members, foreclosures, short sales or estate sales are considered unusable, Beck said. The best comparable sales are those close to your property, with similar numbers of bedrooms, bathrooms and lot sizes, Birchler said.

"If I have to go five miles away, I will," Birchler said. "It's better to use a comp within a mile, but I'm not saying you have to."

The county tax board considers the total assessment, not the home and land separately, Birchler said. "If you  have 200 feet on the open bay and 10 feet on a lagoon, there's a huge value difference," he said. 

Birchler said he avoids putting clients in a position where the municipal tax assessor contests an appeal and files a cross-appeal. "It's my job to tell the truth," Birchler said. "I am an advocate of my client. I'm working for  you. But I won't put you in a position where you have a cross-appeal."

Some residents might think they have a "huge win" if they appeal their tax assessments. But residents who filed successful tax appeals last year will have a more difficult time, he said.

"He's (tax assessor) going to be less helpful this year if you are coming back," Birchler said. "There's no way you're getting a deal worked out this year. It will not be worth it for you. It's what I call double-dipping. You're going to get an unfavorable response. That's when you get the cross-appeal."

Birchler also discussed a list of dos and don'ts for property owners who want to represent themselves before the Board of Taxation.

* Don't talk about your neighbors' assessments.

*Don't discuss how much your taxes have gone up.

* Don't come in with comparable sales that can't be used, like short sales, foreclosures, family member to family member or estate sales. Those sales will be classified as NU — non-usable.

* Submit good comps. Explain to the tax board commissioners how your property is not worth the assessed value."If you handle your appeal on your own, they will go out of their way to  help you with the process," Birchler said. "If you have a small case and want to try it on your own, I find them to be very cordial."