How Does The Property Tax System Work In New Jersey?
The jurisdiction levies assessments annually. The assessment process is reviewed annually in order to ensure that taxpayers are current with valuation issues and are not paying more than their fair share of property taxes.
How Often Is Property Tax Assessed? How Does The Assessment Affect My Tax Bill?
Property is assessed annually. The assessment has a direct impact or bearing on one’s tax bill. Assessed values are multiplied by the town’s property tax rate for the given year, which amounts to the annual tax liability amount.
Are There Limitations On How Much A Residential Assessment May Increase From One Year To The Next?
There is no limitation on how much an assessed value for any property type (e.g. residential, industrial, commercial) may increase from one year to the next, provided it’s done in the context of a town reassessment or reevaluation.
In New Jersey and some neighboring states such as Pennsylvania, some school districts are filing reverse appeals, which are sometimes referred to as affirmative or defensive appeals. The intention is to increase a taxpayer’s property tax assessment. In New Jersey, it’s predominantly occurring through one or two law firms that are soliciting towns and targeting properties they consider to be under assessed. These firms are recommending to their clients (i.e. the towns) that appeals be filed to raise assessed values.
Similarly, school districts in Pennsylvania are focusing on sale transactions that reflect sale prices above assessed values. Clients contact us for help in defending them against these increases with the hope of successfully wiping out affirmative or defensive assessment appeals filed by a town or school district.
For What Reasons Would A Property Owner Appeal Their Property Taxes?
A property owner might appeal their property taxes if they believe they are being over assessed or paying too much. Oftentimes, property owners are correct in believing that they are paying too much. This is especially true in New Jersey, which is known to have among the highest property taxes in the United States. It is almost guaranteed that counties and school districts throughout New Jersey will increase their tax rates each year. While tax rates increase, values may not; this is an issue we examine with the awareness that not every case demands a property tax appeal. For example, in some cases, a property could be fairly assessed or under assessed. If a property owner files a tax appeal on property that was under assessed, the property owner could end up owing additional taxes. For this reason, we look at property very carefully and closely before we recommend to a taxpayer that we initiate a tax appeal on their behalf.
What Steps Do I Need To Take To Address An Issue With My Property Taxes?
In order for an individual to address an issue with their property taxes, it is recommended that they hire an attorney who focuses on and emphasizes their practice in property taxation.
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