Should the HOA pay for property tax appeal?

Our 262-unit new construction condo development is assessed out the hoo-ha as far as municipal property taxes go. Everyone's assessed value is way higher than the market value, and in most cases, what people paid for the units. This obviously is a hot topic within our community, so we've been discussing a tax appeal for the past year or so.

The way it works in NJ is that you can appeal your property tax assessment based on the market value of the home as of the previous October, so we all decided to wait until '09 to file the appeal based on the current (low) values. We know we want to do a group appeal, possibly using the same attorney to help those who are interested file the paperwork and do the actual appeal.

The issue is that some on the board think that the HOA should either pay for the attorney or pay rebates to the homeowners. I think this is a ridiculous idea for a variety of reasons, such as - why is it the HOA's responsibility to reimburse homeowners for previously paid taxes? It's not like that money came to us in the first place. The HOA can be used to organize the appeal, but I don't like the idea of the HOA laying out the money to do the appeal on behalf of the homeowners.

What does everyone here think? Good idea or bad idea?

-Jim

What board do you go in front of where you have to have an attorney?

Around here, any indivudual owner can go in front of the township assessors and plead the case at appeal time.

Good luck in getting any adjustment, especially at this time. The lines will be around the block with people appealing. This is not a good time to try to get property taxes lowered. Pray they don't get increased!!

While i generally agree with the idea Mary advances that the person who benefits pays, I also think it could be beneficial for the HOA to help the process. The HOA (in my opinion) should be about helping the residents.

But I would lean heavily toward a system where those who contribute are represented as the group. Those too cheap are on their own.

As for the thought that you can't protest as the line will be long, don't listen. Those in line will see their values lowered while the others won't.

It works a little differently here. We would go to our county board first and then if they rule that our argument has merit, the town then gets involved.

And in our judgment this is a great time to appeal our tax assessment, since home values are so much lower now than what our assessment is.

-JF

That would not be the case where I live. If four people appealed, then four people would have lower taxes. I do not in any way get an automatic benefit from someone else's appeal. But I could use the success of a similar unit in my appeal.

As a note, in my area there is no real need to employ a lawyer in appeals. The first step is to go to an informal meeting and show why you are appraised too high. Most people find that is all they need.