After much bickering the city council has approved a resolution that will reevaluate all homes in Paterson. For the past weeks council members have been moaning and groaning over the cost of such a city wide revaluation. Their excuses includes: it costs too much, it will not do homeowners any good, and the revaluation is not in the best interest of the city.
The city wide revaluation will cost approximately 2.1m dollars; the same amount that was given in extra to the city by the State. Although the cost may be much the funding is there.
Most homes in the city are underwater; some homes that are being taxed at $300,000 are now worth no more than $150,000; after the revaluation a large number of residents will see their taxes decrease down to a manageable level. A positive externality may be reduced numbers of foreclosures. Because the tax has gone up from 2.5 to 3.6 percent the decrease in tax will not be as much as it would have been had the tax rate remained the same; however, there is still a noticeable difference if one’s home is being taxed at twice the value.
The revaluation is set to start at the end of this year, around fall 2013. The tax decrease may not be much for residents, but at least this revaluation will reveal the true prices of homes in the city.