By Matthew Sockol
Staff Writer
FREEHOLD TOWNSHIP – By a slim majority of one vote, the Township Committee has decided to opt out of the Monmouth County Assessment Demonstration Program.
The program, which was created by the enactment of a state law, is an initiative that seeks to assess a property at its fair market value to ensure the owner pays his fair share of property taxes on an annual basis, Monmouth County officials have said. A property’s market value is determined every year.
The new program replaces one that had property assessments set when a municipality underwent a complete revaluation every decade. As the market changed over the course of 10 years and a property’s assessment remained the same, the result was an unequal tax burden among property owners, county officials have said.
The Monmouth County Tax Board provided municipalities an option to remove themselves from the program, even though it is unclear whether state law provides for such an option. The deadline for a municipality to opt out was May 31.
On May 31, Mayor Barbara McMorrow, Committeeman Anthony Ammiano and Committeeman Thomas Cook voted yes on a motion to pass a resolution advising the Monmouth County Board of Taxation that Freehold Township is opting out of the Assessment Demonstration Program.
Deputy Mayor Lester Preston and Committeeman David Salkin voted no on the motion.
“There were two issues to address regarding the program,” McMorrow said. “One was the actions of some of the members of the tax board and the other was the program itself and its implementation and impact on the taxpayers.”
According to the resolution, the committee has voiced opposition to the program, stating that it:
- has exposed Freehold Township taxpayers to abrupt swings in the real estate market and would do so on an annual basis if left to continue;
- inappropriately interferes with local tax assessors by a technical review process by the tax board administration;
- has a disproportionate adverse effect on residential and senior citizen property taxpayers by inadequately accounting for the commercial tax base adjustment for which there is no sales data;
- denies taxpayers the protection of the Freeze Act, forcing them to file appeals year after year;
- does not preclude the tax board from ordering a revaluation.
The resolution states that questions about the integrity of the Assessment Demonstration Program were uncovered by a newspaper investigation and eroded public confidence in the program.
“While everyone is innocent until proven guilty, there is a criminal investigation involving members who were part of the assessment program,” McMorrow said. “No one can say for certain what the repercussions on the program will be once the investigation is concluded.
“Additionally, (a) steering committee (reviewing the program) has refused to make a decision as to whether or not towns can legally opt out. No one could explain the delay and no reason was given for (the steering committee’s) indecision.
“Unfortunately, the actions of some members of the tax board and the inaction of the steering committee have created a climate of distrust and this has permeated the atmosphere surrounding the assessment program,” the mayor said.
Preston and Salkin offered their comments after voting no.
“In deciding to vote no on opting out of the program, I felt it was important to separate the merits of the program from the controversy it has generated,” Preston said. “Overall, I believe the new program is much better and a fairer process for our residents than the previous methodology, particularly now that the Freeze Act provision has been included. As to the controversy the program has generated, we will wait to see the results of the prosecutor’s investigation.”
Salkin also said he separated the issue into two parts, the personnel and the program.
“The personnel has issues and there has been way too much controversy to allow anyone to be comfortable with what is going on,” he said. “That said, the program does seem to be working better than the old system. While I agree 100 percent with my peers that there should be personnel changes to regain the public’s trust, the program itself is better for the taxpayers. I believe we should stay the course and allow the new system to work.”
As the Assessment Demonstration Program was rolled out and individuals had their property assigned a new assessed value, complaints about the impact the program was having on property taxes were relayed to municipal officials in some communities. Specifically, the issues concerned property owners who saw their homes’ assessment and subsequently their property taxes increase.
Certain aspects of the new program were adjusted administratively as it became apparent that changes were needed, state Assemblyman Declan O’Scanlon (R-Monmouth) said during a recent appearance before the Manalapan Township Committee.
Officials in Shrewsbury Borough and Eatontown who left the program when the county put that option on the table have since voted to rejoin the Assessment Demonstration Program. Locally, officials in Marlboro and Millstone Township have voted to opt out, and officials in Freehold Borough and Manalapan have elected to remain in the program.
