Estimated Tax Bill ?

Just received a bill from the town for estimated taxes. Never saw one of these before (just retired mortgage). Tried searching town website but for some reason the search function isn't working (at least with this computer). I will go down in person when town hall opens and inquire but if someone reading this could explain why such a bill is being presented and what it is for, I would appreciate it. TIA.

It's the property taxes you owe. Were they previously rolled into your mortgage? Now you need to pay them directly to the town. It's estimated due to the way the budgeting process works, but that's the total you owe.

Taxes are due quarterly - next due date is Aug 1st. Probably called estimated because someone's budget isn't finalized (State or county).

I don't recall the exact timeline, but the estimation comes because of the steps in the budget process. Even thought the budget begins to be reviewed in January, it doesn't get officially adopted by the township for many months. Once the township adopts the budget, it is sent to the state for review and approval--which I believe happens sometime around now--during the summer. The same goes for the school and county budgets, although I don't know if they must be sent to the state for review.

This whole process results not only in the 'estimation', but also results in the four payments not being equal since one of the quarterly payments includes an adjustment for any shortfall in what the payments would have been if the final budget began on January 1.

Crazy--yes.

I've been getting those 'bills' (advice/info only in my case) ever since I moved to Maplewood, despite having it paid via the mortgage escrow. I thought that was true for everyone(?)

sac said:
I've been getting those 'bills' (advice/info only in my case) ever since I moved to Mspkewood, despite having it paid via the mortgage escrow. I thought that was true for everyone(?)

We live in South Orange and have always received them as well. We also have it paid via our mortgage.

I was afraid that would happen ... as often seems to be the case lately, it took me several times to get the edit post function to work so that I could correct my phone typo above. And meanwhile it got quoted and there's nothing I can do about that. Anyone else having trouble editing posts on their phones?

(Sorry for thread drift.)

Thanks for the replies.

Congratulations on retiring your mortgage!

Tom_Reingold said:
Congratulations on retiring your mortgage!

+1

Joan,

Lucky you - paid off the mortgage! congrats!!!

I have always had my taxes separate from the mortgage, as the paymentsare less (escrow makes it cost more). The tax system can be confusing - first and second quarter are estimates...third and fourth make up the difference once the rate is certified (always a pleasant surprise...not)....see below - FYI, from the town website:

http://www.twp.maplewood.nj.us/index.aspx?nid=226

Estimated property tax bills
These type of bills are issued when by midst June the tax rate has not been certified to any of the taxing entities namely the County of Essex, the South Orange-Maplewood Board of Education, and the Township municipal government. Rates are certified or set by the County Board of Taxation after receiving the budgets of all municipalities and school districts, which must be certified by the State of New Jersey Division of Local Government as a first step.

By law The Township is responsible for collecting taxes on behalf of the three taxing entities referred. Payments are forwarded quarterly to both the County of Essex and the Board of Education. The issuance of estimated bills is important for the municipal government, in order to prevent cash liquidity problems, which might affect normal operations and provision of services.

As customary, the taxes paid for the first and second installments of this year were based on the prior year tax rate. The third installment represents one-half of the estimated increase in taxes for the first two quarters had the current year tax rate been in place at the beginning of the year. Whenever estimated bills are issued, early in the Fall you will receive a final or reconciled fourth quarter bill, along with the preliminary bills for the first and second quarters of the next year.