TAX SAVINGS FOR AVERAGE SINGLE FAMILY HOME

We have set forth below an example of the savings that can be realized on an average single family home situated in a well maintained Central Bergen County Community.  Our research and compilation of data indicates a value of $395,000 to $410,000 (say $400,000) as of October 1, of this tax year.  The assessed value of the property is $491,100 resulting in annual Municipal property taxes of $9,542.07, the true value of $400,000 multiplied by the same tax rate results in taxes being reduced by $1,770.07 per years or $5,310.21 for the three (3) year minimum period guaranteed by the State of New Jersey.  For practical purposes it is not likely that this owner will be confronted with a property tax increase until the next reevaluation in about fifteen (15) years, so let?s examine the actual savings.

CURRENT ASSESSED VALUE                    $491,100.00

Current Tax Rate                                         $           1.94

Current Taxes                                              $   9,542.07

Value for Appeal                                           $400,000.00

New Taxes                                                   $   7,772.00

Tax Savings Year One                                   $   1,772.00

Tax increases at 5.5% per year (a conservative estimate)

YEAR   1                                                                $1,772.00

YEAR   2                                                                $1,869.46

YEAR   3                                                                $1,972.28

YEAR   4                                                                $2,080.76

YEAR   5                                                                $2,195.20

YEAR   6                                                                $2,315.94

YEAR   7                                                                $2,443.32

YEAR   8                                                                $2,577.70

YEAR   9                                                                $2,719.47

YEAR 10                                                                $2,869.04

YEAR 11                                                                $3,026.84

YEAR 12                                                                $3,193.32

YEAR 13                                                                $3,368.95

YEAR 14                                                                $3,554.24

YEAR 15                                                                $3,749.72

TOTAL TAX SAVINGS                                          $39,708.24

Bear in mind, this example is a modest $400,000 house.  You can easily double or triple this savings for an $800,000 or $1,200,000 property.