(732) 222-8221

910 Oceanport Way
PO Box 370
Oceanport, NJ 07757

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June 18, 2020 - COVID-19 UPDATE NO. 16

JUNE 18, 2020 @ 5:00PM                                         COVID-19 UPDATE NO. 16
                                   ESTIMATED 3RD QUARTER TAX BILL

The recently mailed estimated 3rd quarter tax bills have given rise to a great number of questions and concerns. In retrospect, a letter of explanation from the Borough should have accompanied the mailing of the estimated tax bill. I hope that the synopsis below provides a better understanding of why the estimated bill was issued, what it means and how our 2020 real property taxes will be finalized and rectified.

1. Due to the late adoption of the State of New Jersey’s budget because of the COVID-19 crisis, the Monmouth County Board of Taxation is unable to certify an actual tax rate at this time. This means that Tax Collectors all across the State of New Jersey are unable to issue final tax bills for the 3rd and 4th quarters of 2020.

2. When a tax rate has not been certified, the Statutes direct that a Municipal Tax Collector, in consultation with the municipality’s Chief Financial Officer, compute an estimated tax levy. (N.J.S.A. 54:4-66.3).

3. The Tax Collector must sign a certification showing the tax levies for the previous year, the tax rates and the range of permitted tax levies.

4. Oceanport’s 3rd quarter estimated tax bill is NOT an extra bill that must be paid above and beyond the normal real property tax bills. It is exactly what it says it is: an estimated bill.

5. Here are the actual rates from 2019:

Total Schools: 1.029

Municipal: 0.477
Municipal Open Space: 0.020
Health: 0.005
County Open Space: 0.026
Library: 0.016
County: 0.228
TOTAL: 1.801

6. These are the rates that were used to calculate the estimated 3rd quarter tax bill:

Total Schools: 1.038
Municipal: 0.482
Municipal Open Space: 0.020
Health: 0.005
County Open Space: 0.026
Library: 0.016
County: 0.228

7. Based upon the latest available information from the State of New Jersey regarding the issuance its budget this year, it is likely that the estimated 3rd quarter tax bill will be the only tax bill issued prior to the due date of August 1, 2020.

8. Given that, the 4th quarter tax bill (due on November 1, 2020) will be the bill that reconciles everything.

9. The municipal portion of our tax bill went from 0.477 to 0.482 (half a cent) and this increase translates to $31.00 per year on an average assessment of $570,000.00. Please note, however, that if your assessment went up from last year, the increase will be proportionately higher than $31.00 over last year’s bill.

10. Our tax bills are based on the assessed value of our home multiplied by the tax rate. The tax rate is a function of the total budget in relation to the total assessed values of our properties.

(e.g., If the budget is $100,000 and there are ten homes in Oceanport assessed at $100,000 each, then each house has to pay $10,000. This would, in turn, mean the tax rate is 10%. If, in the next year, the budget stays at $100,000 and the ten homes have their assessments increased to $125,000 each, each house still pays $10,000, BUT the rate drops to 8%.)

11. Under Monmouth County’s program, EVERY property in Oceanport is re-assessed (based on comparable sales) each year. Additionally, under this program, every property in Oceanport has to be inspected by the Tax Assessor over the next 8 years. The annual reassessment eliminates the need for a revaluation every ten years because the sales data is fresh and assessments are based on 100% of value.

12. The bottom line is that we must pay the estimated tax bill by the due date (August 1, 2020 with a grace period of 10 days thereafter) and our total 2020 tax bill will be reconciled with the 4th quarter tax bill (which can only be calculated after the State finalizes its budget).

13. If you have any questions or comments, please call our tax collector at 732-222-8179 or e-mail me directly at [email protected]

John F. Coffey II

Mayor of Oceanport

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