New Jersey Property Tax Assessment Appeals
Many New Jersey property owners believe their property tax assessments are uncompromising. The truth is property assessments are not. Property assessments hinge on the tax assessor’s calculation of the market value of a property, and often such calculations may not be accurate or reflective of current market value. Tax assessors are in control of the assessment but are not infallible.
Filing for a property tax assessment appeal requires strict adherence to government procedures and deadlines. Most tax assessment appeals are required to be filed with the County Tax Board. Appeals generally must be filed on or before April 1st, or within 45 days of the mailing of the Assessment Notice (Burlington, Gloucester, and Monmouth County appear must be filed with the County Tax Board by January 15th). In areas where a municipal-wide reassessment or reevaluation has been performed, the deadline is May 1st. After the appeal is filed, a hearing in front of the County Tax Board is scheduled, typically between May and July. Properties assessed over $1 million, or the added or omitted assessment exceeds $750,000 allow you to file the property tax assessment appeal directly with the New Jersey Tax Court instead of filing with the County Board of Appeals. State deadlines on procedures for tax assessment appeals are strictly enforced.
The filing fee for tax assessment appeals at the County Board level depend upon the assessed value:
- $5 filing fee for a property assessed under $150,000
- $25 filing fee for a property assessed between $150,000 – $500,000
- $100 filing fee for a property assessed between $500,000 and $1,000,000
Grounds for Property Tax Assessment Appeal
It is important to present the County Tax Board with relevant reasons why the property is over-assessed. Did the tax assessor list the property at a greater square footage than it actually has? This is a common issue. Are you being assessed based on a strong real estate market when in reality your area is experiencing an economic downturn? Sale of comparable properties are usually the best evidence for a property’s current market value. Typically, comparable sales from the 12-month period before October 1 of the year being appealed are considered relevant and the strongest evidence. Evidence at the County Tax Board is due seven days before the property assessment hearing. In non-reassessment or non-reevaluation years the taxpayer must show their property is 15% or more over-assessed.
Expert Witness
Beside the municipal assessor, an expert witness is anyone employed as a real estate appraiser and designated as such from a legitimate association of professionals, according to licensing or certification requirements of the State of New Jersey. An expert’s qualifications may be challenged by the municipal attorney at the hearing. If expert testimony will be used at the hearing, a copy of the appraisal report must be served on the tax assessor and each County Tax Board member at least 7 days before the scheduled hearing. The appraiser who completes the report must be available at the hearing to testify and to afford the municipality an opportunity to cross-examine the expert.
Assessment Appeal Results
The County Tax Board provides hearings and decisions for all properties within three months of the filing deadline unless extended by the New Jersey Division of Taxation. Judgments are typically mailed out shortly thereafter and the taxpayers will be advised whether the appeal was successful.
Procedures after the County Tax Board decision
Following the hearing of the County Tax Board, if an unsatisfactory result is received, an appeal of the decision may be made to the New Jersey Tax Court. An appeal to the Tax Court is required within Forty-five (45) days from the date the County Tax Board’s decision was mailed.