News Release
For Release: Immediate
Contact: Frank Baraff  914-469-3775

Orange Tax Bills to be reduced, January-June to make up for over billing in first half of 2010 Fiscal Year. Tax Collector apologizes for mistake.

In a memo to Business Administrator John Mason, City Tax Collector Carl Smith revealed that the estimated first half tax billing for Fiscal Year 2010 was over billed by $2,009,130.65, which represents an 11.7% total over billing.  Mr. Smith said that the tax bills for the next two quarters will be reduced to rectify the situation.

According to Mr. Smith, the mistake occurred as the result of his failing to fully understand the terms “projected new fiscal year levy” and “preliminary levy” on the municipal tax sheet prepared by the State of New Jersey. Mr. Smith was informed of his mistake recently in a letter from the State Division of Community Affairs.

The mistake was discovered after an issue regarding her individual tax bill was raised repeatedly by taxpayer Katalin Gordon at several City Council meetings.  Ms. Gordon met with the City Finance Director to determine whether she had been overbilled and, if so, the cause of the overbilling. Because the investigation of her complaint focused on a possible mistake in her individual bill, there was no scrutiny of the possibility that all taxpayers had been overbilled. When Ms. Gordon brought her complaint to the State Division of Community Affairs, the State discovered that all Orange taxpayers had been accidently overbilled.

Mayor Eldridge Hawkins stated: :”I want to thank Ms. Katalin Gordon for her persistence in pursuing this issue and for helping to uncover the billing mistake. Ms. Gordon’s hard work and her refusal to take “no” for an answer when she knew she was right is an inspiration for all citizens trying to transform Orange.”

Tax Collector Carl Smith stated: I also want to sincerely apologize to Ms. Gordon and all of the taxpayers of Orange for the distress and hardship that my serious mistake has caused. I assure all taxpayers that we will make up for the mistake by reducing all tax bills in the second half of this fiscal year.”

Memo and letter from Division of Community Affairs attached.