An input error during the tax revaluation process will lower estimated tax savings for residents, officials said. They said a four-lot property on 425 Pleasant Valley Way was incorrectly listed as 5,600 acres in size instead of its actual size of 5,600 square feet.
Appraisal Systems, Inc. was hired in March 2010 under a $1,143,000 contract to conduct the township's Following the company's mathematical error, Appraisal Systems agreed to perform additional services and added assessments for the compliance plan at no cost to the township.
Business administrator Jack Sayers said consultant George Librizzi, who identified the error, will remain working with the township through 2012 to oversee the compliance plan. Librizzi will be paid an additional $5,000 that will be deducted from the original contract with Appraisal Systems, Inc., according to the resolution that was approved by the township council Tuesday night.
Sayers said the glitch resulted in a $2 million revenue difference and was caught after estimated tax bills had already been sent out. He said fourth quarter tax bills will be slightly higher and savings will drop from roughly $123 to $78.
The error, though, was reported in time to reset the tax rate with the county, changing the rate by 0.033 percent, Sayers said.
Officials with the tax collector's office said the current tax rate is now 3.481 percent.
A total of 14,224 taxable properties were along with 488 tax-exempt properties that include schools, synagogues, churches and parks.
Sayers said mistakes like these had happened before but "not those numbers," — a $2 million miscalculation. "It is understandable how it happened," said Sayers. "it was a good thing it was caught prior to us getting the tax rate."