The city is paying out $119,933 to the owners of two large commercial buildings on Market Street and Lafayette Street.
Paterson Med Realty, owner of 171-181 Market Street, is entitled to a $77,485 refund as a result of the owner’s successful appeal of the large commercial building’s tax assessment for 2008 and 2009, according to city records.
The property was assessed at $6.5 million for 2008 and 2009. The property was assessed at well above its fair market value. The city agreed to settle the case by reducing the assessment for both years to $4.5 million. This reduction led to a decrease in the amount of taxes property was required to pay for 2008 and 2009 resulting in the city having to issue a refund.
KLM Pat, owner of 169-191 Lafayette Street, filed a tax appeal to reduce its $3 million assessment for 2012, 2013, and 2014. The owner also appealed the property’s 2015 and 2016 assessments.
As part of the settlement, the city agreed to reduce the assessment to $1.59 million for 2013 and 2014. The owner will withdraw tax appeals for 2012, 2015, and 2016. This left the city to refund $42,449 to the owner of the large Lafayette Street industrial building.
The city conducted a full property revaluation in 2015 to reduce the large number of tax appeals property owners were filing against the municipality. All properties within the city are now assessed at market value. Moreover, the city is conducting annual reassessments of properties to ensure properties remain assessed at current fair market value.
Council members approved resolutions settling the two tax appeal cases earlier in the month.