Appealing New Jersey Tax Assessments

It is well known that the financial downturn which occurred in 2007 lowered property values in communities throughout New Jersey.

This, in turn, triggered concerns that assessments upon which homeowner's taxes were based were inflated, thus creating artficially high taxes.

The number of tax assessment appeals filed in the years since 2007 has increased considerably.

Within such a prevailing economic climate -- and even now -- appealing new jersey property taxes was seriously considered and pursued by owners  of both commercial and residential properties.

As opposed to the perception conveyed by its name, a tax appeal tests not the tax obligation itself, but instead the analyzed worth (i.e. assessment) of a property as established by the local tax assessor, as established as of October 1st of the pre-tax year.

For instance, for 2016, the residential property whereupon taxes are based is the assessed value as of October 1, 2115.

Notifications of the assessments are sent to homeowner on an annual basis, typically in late January or early February of the tax year.

The assessed value itself does not always represent the market worth of the residential property, unless the community was the subject of a revaluation or review.

In order to establish the market  value to which the assessment corresponds,  an "average ratio" for the taxing district, established by the Supervisor of the New Jersey Division of Taxes,and  which changes yearly, must be appied to the assessed value.

In addition to an "average ratio," there exists  in each community an "upper limit" as well as a "lower limit" ratio.

Reduction of a tax assessment would likely be required if the market worth of the property as of October 1st is less compared to the market value at the "upper limit "ratio but commonly not if the market value drops within the corridor between the top proportion as well as the lower restriction ratio. The assistance of an appraiser is often needed in identifying the market value of a home during a tax appeal.

It is essential to recognize that the due date for submitting a tax appeal is April 1st of each year (May 1, in instances where there has been a revaluation or reassessment in the municipality) -- a firm day that cannot be extended.

If the analyzed value of the home is less than $1 million, the appeal should be filed by this date with the County Board of Tax in the region where the residential property lies. If the assessed worth is $1 million or more, the appeal should be filed with either the County Board of Taxes, or the Tax Court of New Jersey.

If the taxpayer achieves success on appeal in lowering the assessment, the taxpayer will  get a reimbursement of taxes paid based upon that evaluation, or, more probably, a credit in the appropriate total up to be used against future taxes.

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