Courtesy of

Amerival Tel. 732-286-3000

FAX 732-612-1400

Email & Web

myappraiser.amerival@ymail.com

http://www.amerival.net

Director Of Operations:

Albert M. Cerone

Regional Realty Associates:

Dan Warthen, Jr.

Jay Jurasek

Dave Kaytes

Peter R. Vidi

Louis A. Bonato

James Hanson

Associate Professionals:

Michael Cannon, P.E.

Bob McCook

Juan Bellu, EA

Rich McCabe

Of Counsel-

Michael C. Paxton, Esq.

NOVEMBER 15, 2015

Issue 213

Amerival Realty & Valuation Newsletter

THE LAW ISN’T ALWAYS JUST BY

Albert M. Cerone, IFAS, FELLOW, CTA

HAPPY THANKSGIVING- The “First Thanksgiving” was in 1621 at which the Pilgrims celebrated their first

harvest in the New World. It was a three (3) day feast and attended by 53 Pilgrims and 90 Native American

guests. It’s difficult to believe that different cultures could get along so well so quickly….and, then, differ-

ences came into play and the laughter and joy turned to screams and horror which is what we are experiencing

today throughout so much of the world. Yes, I remember my history books and the crusades, etc. But this is

our country and for the most part it was founded by people who sought a better life free of tyranny and reli-

gious bias and a blind eye to color. And, we think we got smarter.

As for the holiday and how most of us choose to remember and celebrate was brought to the national eye by

our first president, George Washington, who in 1789 proclaimed it as a federal and public holiday.

Then, in 1863 it was proclaimed by President Abraham Lincoln a national day of “Thanksgiving and Praise to

our beneficent Father who dwelleth in the Heavens”. He also set the date which is always the last Thursday in

November, which didn’t stand as time elapsed.

In 1939, President Franklin D. Roosevelt having the country in the midst of the Great Depression broke with

the tradition and moved Thanksgiving to the fourth Thursday. Part of his thought process was to give the

stores a longer period of time to increase sales and profit which was in the best interest of the national econ-

omy. Republicans became incensed seeing it as a slap in the face of Lincoln. So, November 30th of that year

became known as the Republican Thanksgiving and November 23rd as the Democratic Thanksgiving. Isn’t

politics wonderful? (rhetorical). Actually Roosevelt had no authority to mandate a date and therefore each

state did what they wanted to do, except Texas which declared both dates a state holiday. Good for them!

On October 6, 1941, both houses of Congress passed a joint resolution fixing the traditional last-Thursday date

for the Thanksgiving holiday to be a legal holiday for the United States. But in December of ‘41 the Senate

passed an amendment to the resolution that split the difference by requiring

that Thanksgiving be observed on the fourth Thursday of the month and the

House and Roosevelt then signed on. Many Christians begin the Thanksgiv-

ing meal with a prayer to God to thank Him for their lives and bounty He has

provided them. I presume those of other religions in our country do so also.

Whether you do or not is not the question. The point of the holiday is to be

thankful for “the bounty you are about to receive”. And, to realize you were

blessed with the love and sharing you receive from those at your table. So,

have a Wonderful and Happy Thanksgiving and enjoy the bounty with

which you have been blessed.

TAXPAYERS VS. PRINCETON UNIVERSITY- On November 5, 2015, the New Jersey Tax Court decided

a case in which some Princeton Township residents sought a re-consideration of the municipalities decision to

accept an exemption from taxes for Princeton University. This writing does not draw conclusions, that is what

the legal system having the knowledge and expertise it has must do. This writing is to bring this case to your

attention and to hopefully provoke serious thought and personal determinations from each of you who choose

to consider it.

The essence of the case in this layman’s opinion is the method of determination that a tax assessor can apply to

qualifying a property exempt from taxes; and whether the assessor has the expertise and qualifications to make

this determination. The tax court found in favor of the third party appellants, the individuals of the township.

There is far too much entailed in saying “yeah” or “nay” in the support of the information provided in the court

case or to set forth an opinion of correctness of the court’s decision.

There are some thoughts this writer has, however. Not having the specifics of the University property that is in

question which apparently is over 30 parcels, the opinions set forth may not be valid should the conditions of

the case simply prove inappropriate for this matter.

If the issue is the primary grounds of the university being wrongly accepted as exempt, then there is far too

little information in the reading I am using as my information. This is the determination as the to the correct-

ness of accepting the grounds as exempt based on the statutes that exist and by which the assessor is to make

the decision. Having been an assessor and presently a Tax Commissioner, I know that I wouldn’t have made

that decision without benefit of council, which I choose to believe the assessor did.

There are some basic questions I have. Are some of the political positions of the university and some of the

political affiliations student groups comprise in sync with the rights the Constitution provides or are they in

violation of same. If the latter, then maybe the groups which if approved by the administration have operated

outside the Constitution and Bill of Rights, then they are in violation. Whether it be a private or public institu-

tion, the city or municipality must react to the decision by instituting the same criteria for both.

It would be presumed that someone must place a value on the property in question. I doubt seriously any tax

assessor is capable of doing that. It would require retaining specialty appraisers, as most appraisers also aren’t

capable of that specialty. I am most certain that revaluation companies are also incapable of making these

valuation conclusions. It would be interesting to know how any calculations came about. Now, it is by statute

and some court cases set forth that tax assessor’s are experts in real estate appraisals *in local property tax ap-

peals* which is far too often extended to “experts in real estate valuation”...period, and that is not true. In my

years the vast majority of assessors are not experts in real estate and certainly not qualified to be “appraisers”.

I’m not insulting them, just setting forth that they are dealing in mass and quick determinations. And, this is

why there are tax appeals in which a great number are successful, because the assessor cannot strictly by limi-

tation of time and possibly capabilities be able to prove a value the right way. This is why that which they do

is called mass appraising. It is like a scatter gun when hunting. The hunter is often not even good enough to

get one bullet into a target but a mass of bullets or fragments at one trigger pull will likely get at least one tar-

get. Does that make the hunter using a scatter gun a marksman? Hell, no! It means he just has to get close

enough to get lucky. And, that is the position of the tax assessor. There are some assessors who are appraisers

also and they have a better opportunity of getting a number more correct when they are in total control which

so often they are not because a revaluation company set the assessments. However, that appraiser / assessor is

charged with this is highly unlikely able to defend her or his assessment.

So, the Princeton case has too many “presumptions” that may have legal basis but not realistic defensible posi-

tions. Thus, the case must be decided on two levels. First, the legal position of whether the actions of the uni-

versity are within the constitutional rights afforded it, as the public and the ability of the assessor to set forth a

value for the property in question. This is an interesting text book case with the law setting forth the basis and

degree of the participants’ abilities to act within the law prescribed which in this writer’s opinion is antiquated

putting it out of touch with the reality of the capability of those involved with their responsibilities.

The Dead Rising or Waiting too Long for the Subway Was it Alive and this is the Wake?

Domino’s or an Indication that Hard Wired Telephones are Dead? Now this Makes Sense!!!

Talk About Turning the Tables Put up one Helluva Fight!

UPCOMING NEW JERSEY NAIFA 5OTH ANNIVERSARY APPRAISAL CONFERENCE-

Dates: April 12 & 13, 2016

Place: Harrah’s Hotel in Atlantic City, NJ (777Harah’s Blvd.; Tel. 844-619-0667)

The 1st day will have the 2016 & 2017 required 7 hour USPAP seminar. So don’t miss the first opportunity of

a professionally presented USPAP seminar being conducted by a highly recognized and sought after national

instructor from Tennessee.

The next day will have several offerings of which one is a Land Use Seminar which will have 2 highly recog-

nized land use attorneys and a New Jersey land use expert with years of successful experience and published in

the specialty. This will be followed by a mock land use hearing featuring the two attorneys from the seminar

and the expert who shall be chairman of the board accompanied by a partner from a New York law firm with

high powered experience. They will present a land use case which will be decided by the board and then de-

cided by the audience. Don’t miss this!! Ask those who attended last years conference in which there was a

mock tax board hearing that 150 people were absolutely thrilled. This will be at least as good.

Also scheduled is a 5 hour special FHA seminar to be conducted by Tom Munizzo, a former NAIFA national

president. Mr. Munizzo, a highly recognized speaker throughout the U.S. with an exciting flair.

There is also a new real estate law seminar required for NJ appraisers which will be presented by Joseph

Palumbo, a member of the NJ Appraisal Board. He was responsible for some of the success our 2015 confer-

ence enjoyed with the NJ board update.

And, an exciting and novel 2 hour “edge of your seat” seminar entitled “Weird and Unusual Assignments”

which will be presented jointly by Chuck Blau, Esq, IFAS, Carl Mucciolo, IFAS and John Marrazzo, IFAS, all

past NJ State Directors.

Keep watching for updates. Go to the NJNAIFA website for up to the minute updates for the seminar. The

website is http://NJNAIFA.COM.