Frequently Asked Questions
Property Tax Appeal
What is a property tax appeal in New Jersey? A property tax appeal in New Jersey is a process that allows property owners to challenge the market value of their property if they believe it is inaccurately or unfairly assessed. The appeal aims to adjust assessment to reflect the true market value, and thus lower the assessed value to reduce your property taxes.
What are the deadlines for filing a property tax appeal in New Jersey? In most municipalities, the deadline to file a tax appeal is April 1st with the County Board of Taxation. For municipalities undergoing a revaluation or reassessment, the deadline extends to May 1st.
How do I determine if my New Jersey property is over-assessed? To determine if your property is over-assessed, compare its market value to similar properties sold around the previous assessment date of October 1st. If properties that comparable to yours have a lower market value on average, you are over-assessed.
What are the costs associated with filing a tax appeal? The cost to file an appeal in New Jersey varies based on the property’s assessed value, with fees typically ranging from $5 to $150. Professional fees for property tax consultants or attorneys are often contingent on the amount saved.
What happens at a property tax appeal hearing? During the hearing, the property owner (or their representative) presents evidence to justify a lower assessment. This may include sales data, appraisals, and expert testimony. The municipality also presents its case. The tax board evaluates the evidence and issues a decision. Summary hearings do not require attendance and the decision is based off evidence initially submitted with the application.
How long does the appeal process take in New Jersey? The process can take several months. Hearings usually occur between May and July, and decisions are typically issued within 60 to 90 days after the hearing.
Can my assessment increase if I file an appeal? While technically possible, the tax appeal process is virtually risk-free. Appeals either result in either an affirmed assessment, meaning no reduction, or a revised assessment lowering your property taxes. If a reduction is granted, the municipality cannot increase the assessment for at least 2 years.
Can I file a tax appeal every year? Yes, property owners in New Jersey can appeal their assessments annually if they believe the property is over-assessed. However, you must provide new or updated evidence each time.
What evidence is needed to win a tax appeal? Successful appeals often rely on comparable sales data, appraisals, and expert analysis that demonstrate the assessed value is unfair based on the property’s market value.
General Questions
How can I find comparable sales data for my tax appeal? Consult property tax professionals, appraisers, or online sales databases to find recent comparable sales in your area.
Why hire a property tax consultant? A tax consultant can analyze assessments, gather evidence, and present a compelling case to the tax board, increasing your chances of success.
Are tax savings guaranteed through an appeal or abatement? No, but a strong case supported by evidence can significantly improve the chances of reducing your tax burden.
How often should property owners review their tax assessments? Property assessments should be reviewed annually to ensure they align with market value, particularly if property improvements, market shifts, or other changes have occurred.
Exemptions and Abatements
What are property tax exemptions and abatements? Exemptions reduce or eliminate property taxes for certain qualifying properties, while abatements lower taxes temporarily to encourage development or renovation projects.
What types of projects qualify for abatements or exemptions in New Jersey? Qualifying projects often include:
New residential or commercial construction
Major rehabilitation or redevelopment
Affordable housing projects
Historic property restorations
Projects in designated redevelopment or urban enterprise zones
How long do property tax abatements last in New Jersey? Abatements typically last between 5 and 30 years, depending on the scope of the project and local municipal guidelines. Some abatements phase in higher tax rates over time.
How can developers apply for tax abatements or exemptions? Developers must apply directly with the municipality. The application process generally involves submitting project plans, financial statements, and community impact assessments.
Can tax abatements transfer to new property owners? Yes, abatements and exemptions can often transfer to new owners, subject to the original terms and municipal approval.
What if a project is delayed or not completed? Failure to complete a project within the specified time may result in penalties or the revocation of the abatement or exemption.
Chapter 91 Requests
What is a Chapter 91 request? Chapter 91 of New Jersey law allows tax assessors to request income and expense information from owners of income-producing properties. The goal is to verify the property’s value based on its profitability.
Who receives Chapter 91 requests? Owner’s of Income-producing properties such as commercial, industrial, and rental residential properties typically receive these requests.
How should property owners respond to a Chapter 91 request? Property owners must provide accurate income and expense reports within 45 days of receiving the request.
What are the consequences of ignoring a Chapter 91 request? Failure to respond can result in an unfair assessment and loss of your right to appeal that year.
Can I still appeal if I miss the Chapter 91 deadline? In most cases, failure to respond forfeits appeal rights.