City Council hired an appraisal firm to help with the tax assessment of new developments on the East Scott Avenue campus of Merck & Co., the city’s largest taxpayer.

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During its Feb. 12 regular meeting, City Council the governing body awarded a $25,500 contract (AR-54-24) to McNerney & Associates for professional appraisal services. The Glen Rock-based firm will “assist in a complex tax assessment” for new buildings that Merck is constructing, according to William George, the city’s public relations coordinator.

The pharmaceutical giant in 2020 announced plans to consolidate its headquarters on the 210-acre campus in Rahway. That has ushered in various changes on the Merck campus, including rehabilitation, some demolition, and new construction although uses have remained industrial, office or research,

McNerney & Associates also has received contracts for appraisal services on Esterbrook Avenue properties slated for a new senior affordable housing complex and several parcels on East Cherry Street.

In 2011, the city settled a property tax appeal with Merck, which is the city’s largest taxpayer. The settlement reduced property taxes for the company by at least $4.5 million over three years, dropping its overall tax assessment by $82 million, or more than 26 percent, to $230 million.

As part of that settlement, Merck withdrew its appeal for the 2009 tax year and received a cash refund of overpayment of taxes that year of $1.6 million. At the time, city officials estimated that the appeal was responsible for about a $66 increase in the average property tax bill that year.

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