Understanding Your Tax Assessment

Assessment postcards were mailed on November 23rd detailing the new assessment for 2023. We wanted to take this opportunity to provide some background on what is occurring with property assessments in the Township of Middletown and how it may impact the Township's tax rate.
 
For the tax year 2023, the aggregate preliminary net value of the Township will be 11.69% higher than it was in 2022. This does not mean your taxes will go up 11.69%. It means that the overall value of properties in town have increased. The valuation of all the properties within the Township and the tax rate are proportional. If the Township valuation increases, the tax rate decreases. We anticipate that the 2023 tax rate will be lower than the 2022 tax rate due to these increased property values. If your assessment has increased less than the baseline (less than 11.69%), you will pay a lesser proportionate share of the Township’s tax levy in 2023.
 
The assessment function serves as the distribution mechanism of the property tax levy which is a combination of municipal, library, school, open space, and county taxes. Since taxes are intended to be split up amongst the property owners based on the market value of the properties, it is critical that the assessment process is uniform, accurate, fair, and transparent.

The Monmouth County record search allows you to search for assessed value, sales data, ownership information, tax list history, property record cards, annual assessment postcards, and more.

Map Description automatically generated Opens in new windowMonmouth County Property Tax Estimator and Frequently Asked Questions


Use the Monmouth County Tax Estimator to gain insight about your 2023 estimated tax bill and review the top 10 most frequently asked questions to help you better understand the reassessment process. Simply follow the instructions, input specific data related to your property, and the tool will provide you with an estimate for what you can expect to pay in property tax in 2023. Since the tool can only provide an ESTIMATE, please note the qualifications included regarding the estimates generated by the tool.

Please note that assessments are based on real estate sales of properties within the Township. View an interactive map of recently closed comparable sales. The interactive sales map is filtered to remove distressed sales. Use the Monmouth County record search to view all sales. 

Please contact the Tax Assessor if you believe that your new assessment does not accurately reflect the market value of your property or if you have any questions about the assessment process. View the Tax Assessor's contact information.

If you believe that your new assessment does not accurately reflect the market value of your property based on recent sales, you may file an appeal at secure.njappealonline.com. Read a guide to assist property owners in preparing for an assessment appeal hearing.

The Importance of Frequent Reassessments

Publications:


- Journal of Property Tax Assessment & Administration: Shoring Up Property Tax Assessment Inequities in Monmouth County, New Jersey by Robert Haywood Scott III and Jonathan Daigle (November 2022) 

Monmouth University’s independent review of Monmouth County’s implementation of the “Assessment Demonstration Program” (P.L. 2013, c. 15) as printed in the IAAO Journal of Property Tax Assessment & Administration. The study finds empirical evidence that both vertical and horizontal inequity of residential property tax assessments decreased after ADP implementation, but progressive tax assessment inequities still persist within the county, that annual reassessments provide the necessary assessment oversight and maintenance required to ensure fair taxation and much more.    

Read Shoring Up Property Tax Assessment Inequities in Monmouth County, New Jersey.

- Lincoln Institute of Land Policy: Property Tax Relief for Homeowners by Adam H. Langley and Joan Youngman (November 2021)

Chapter 5 addresses the importance of consistent reassessment; "the longer a jurisdiction goes without reassessing property values, the greater tax inequities become. Properties with the slowest growth in values (or largest declines) become increasingly overtaxed. Properties with the fastest growth become increasingly undertaxed." 

Read Property Tax Relief for Homeowners.

- Moody's Investor Service: Municipalities look to save time and money with improved assessment process by Susanne R. Siebel, Analyst, Public Finance Group (December 2017)

“Fairness has surprising impact on credit quality. While the issue of fairness in tax bills seems unconnected to credit, it is, in fact, very closely connected. The temptation is to think that as long as a municipality gets its money, the way the tax levy is divided among households is irrelevant. The problem with this view is that, in addition to the sheer lack of fairness, a faulty assessment is technically illegal. Maintaining accurate assessments ensures that taxpayers contribute their correct portion of the total tax levy. Simplifying matters for the sake of clarity, the total tax levy should be apportioned to taxpayers based on the percentage that their property is in relation to the total tax base. For example, if a taxpayer's property assessment is 10% of the total assessed value of the tax base, a taxpayer should pay 10% of the tax levy. Without accurate assessments, it is easy for taxpayers to pay an incorrect share of the total levy. Technological improvements contribute to improved efficiency. In addition to changes occurring in Monmouth under the ADP program, the county has also created several technological improvements aiding in the assessment management process.

Read Municipalities look to save time and money with improved assessment process.

- Tax Foundation: State Provisions for Property Reassessment by Justin Higginbottom (April 2010)

“But property values—such as home prices—are not static. Over time the market value of property will change, and not in a uniform pattern. That is, even in the same county, some property will appreciate rapidly while values elsewhere may stagnate or even drop. These variations in market value necessitate regular reassessment of the property in order to levy an equitable property tax.”

Read State Provisions for Property Reassessments.


Awards:


- International Association of Assessing Officers (IAAO): 2019 Distinguished Jurisdiction Award

The Monmouth County Assessors Association, and the Monmouth County Tax Board won the highest annual award in the world, nicknamed the “Pulitzer of assessing” from the International Association of Assessing Officers (IAAO) in 2019. This award is presented to a national, state/provincial, regional or local assessment agency that has instituted a technical, procedural or administrative program which is an improvement over prior programs in that jurisdiction and is generally recognized as a component of a model assessment system and a contributing factor to equity in property taxation.

Read about the the IAAO's Distinguished Jurisdiction Award.

- John F. Kennedy School of Government, Harvard University: Top 25 in 2018

“The Innovations in American Government Awards is the nation's preeminent program devoted to recognizing and promoting excellence and creativity in the public sector.”

Read about the Innovations in American Government Awards.