Jersey City: More Property Tax Refunds Means More Reverse Appeals

There is good news and bad news for Jersey City taxpayers. The good news first: Many taxpayers in Jersey City have successfully appealed their tax assessments (contact us for more details), thus rightfully receiving refunds on their over-assessed properties. So much so that a whopping $21 million dollars in emergency funding had to be approved at the December 13, 2023, Jersey City Council meeting to “fill the shortfall”. The emergency funding was required “to pay tax appeal liabilities and general liabilities” as the City was paying out refunds due to various tax appeals filed by property owners/tenants.  The Council voted 6-2 in favor of authorizing the emergency funds.

Councilmembers Frank Gilmore and James Solomon opposed the emergency funds. Councilman Solomon stated “We’re in a tough situation. There’s no good way out of it.” Councilman Solomon stated that he had previously inquired with City administrators as to what preparation was being made for tax appeals to which “They gave very short, small answers. I followed up. Didn’t get any answers. Now, we sit here in December with a 21 million dollar liability. There was a way to avoid the problem. It is extraordinarily important that we are using every tool in our toolbox.” According to Councilman Solomon, property tax appeals increased from 363 in 2022 to 1,118 in 2023. Jersey City Finance Director Carmen Gandulla, when detailing why the additional funding was required explained that “we were paying them [the tax appeals] as we went and they came in. Due to COVID and courts, we got a lot more liabilities related to this…”

That’s the good news. Now, the bad news. As the old idom goes, “too much of a good thing…” The hammer dropped during the meeting that to make up for the excess in approved emergency funding, more reverse appeals (appeals filed by the City to increase property assessments) needed to be filed. Councilmember James Solomon stated “we need to file counter tax appeals.” He added, we need to “Know every single possible tax appeal and what our possible liabilities might be. We need to file reverse tax appeals at a significantly greater rate. We need to follow reverse tax appeals against the largest residential buildings on this list. We need to continue to spend as responsibly as possible. We are increasingly pushing costs onto future taxpayers, and it’s going to harm future city governments.”

The Councilman’s statements signal a change in the coming years as the City may look to file more reverse appeals on unwilling taxpayers in an attempt to increase the City’s tax revenue.  Hopefully the basis for the appeals will be the increase in market value to the properties and not simply manufactured to make the City more money or to offset the tax appeal refund loss seen in 2023.  Whether the City will follow Councilman Soloman’s lead is yet to be seen.

For questions on how to appeal your assessment feel free to contact this blogger. Otherwise, stay tuned…