Residents may sue over property tax

During a town hall meeting Wednesday night, residents of Princeton Township and Princeton Borough pledged their money and support to the Princeton Fair Tax-Revaluation Group which is aiming to overturn a property tax revaluation.

The Borough’s 2010 tax revaluation had the immediate effect of increasing property taxes on lower-priced houses and decreasing taxes on higher-value residences. Many Borough residents have cited difficulties in making tax payments since the revaluation, with some taxpayers reporting a near-twofold increase in their property taxes.

The Princeton Fair Tax-Revaluation Group is currently led by Borough resident Jim Firestone and former Princeton Township major Jim Floyd. More than 120 people attended the group’s meeting on Wednesday night, with many pledging money to support legal fees in a potential class-action suit against the Township and Borough. The group advocates the lawsuit as a more effective measure than “Band-Aid” appeals from individual residents.

According to local attorney Bill Potter ’68 of Nassau Street-based law firm Potter & Dickson, the group could make the case that the tax revaluation was systematically erroneous, non-uniform, discriminatory and possibly in violation of both the Fair Housing and Open Public Records Acts.

There are currently no exact figures for the cost of a lawsuit, but Potter noted that the fees would depend on the length of the suit.

Firestone has been collecting donations on behalf of the group and depositing the funds in a checking account. If the group decides not to sue, donors will be refunded.

Many members of the group have cited issues with the way the revaluation was conducted. The Township and Borough used contractor Appraisal Systems Inc. to carry out the revaluation, and fair tax group supporters have questioned whether the company failed to fulfill different aspects of the contract.

“[Appraisal Systems] did not fulfill the contract [with the Township and the Borough] in many different little respects,” Township resident Giles Crane said. “They add up.”

Crane has pledged to the group that he would support a class-action lawsuit.

“Even when properties have not improved, the surroundings have slightly degraded by higher [housing values] and more traffic,” Crane said. “One should not have this spread resulting in tax increases.”

Crane also noted his support for local tax assessors instead of larger companies. These small companies, Crane said, “have all the building permits and street changes at their fingertips.”