Introduction legitimate association of professionals ...

1 Introduction The State Division of Taxation, with local according to licensing or certification Example This brochure was developed to assist assessors assisting, annually conducts a requirements of the State of New jersey . An Director's Ratio = 85%. taxpayers in preparing for tax appeal hearings. statewide fiscal year sales survey, Common Level Range = expert's qualifications may be challenged by It is intended as an aid to property owners, but investigating most real property transfers. Sale True Value = $95000 the municipal attorney at the hearing. should not be considered as all-inclusive. The value is compared to assessed value Assessment = $67000 If you intend to rely on expert testimony at general information provided is derived from individually to determine an average level of Ratio = ($67000 $95000) your hearing, you must supply a copy of the New jersey laws governing tax appeals: assessment in a municipality.

2 An average ratio Judgment = Increase in assessed value appraisal report for the assessor and each 54:3 et seq. and 54:4 et seq. and is developed from all bona fide, arm's length New Assessment = $80750 ($95000 x 85%) County Tax Board member at least 7 days 18:12A et seq. property sales to represent the assessment The Chapter 123 test assumes the taxpayer before the scheduled hearing. The appraiser Property taxes are the result of the local level in your community. In any year, except will supply the Tax Board with sufficient who completes the report must be available at budget process and may not be appealed but the year a revaluation is implemented, the evidence to determine the true market value of the hearing to testify and to afford the the property's assessment may be.

3 A taxpayer common level of assessment is the average the property subject to appeal. Appellants municipality an opportunity to cross-examine considering an appeal should understand that ratio of the district in which your property is should inquire into their district's average ratio the witness. he/she must prove that his/her assessed value situated, and is used by the County Tax Board before filing a tax appeal. This ratio changes Is a hearing always necessary? is unreasonable compared to a market value to determine the fairness of your assessment. each October 1 for use in the next tax year. A hearing is always necessary.

4 If the standard. By law, your current assessment is How do I know if my assessment is fair? What is a tax appeal hearing; when may I assessor, municipal attorney, and taxpayer assumed to be correct. You must overcome In 1973, the NJ Legislature adopted a formula appeal; who hears my appeal? agree to a settlement or otherwise resolve the this presumption of correctness to obtain an known as Chapter 123 to test the fairness of Tax appeals must be filed annually on or issues, it may not be necessary for you to assessment change. an assessment. Once the Tax Board st* attend your hearing. Settlement stipulations before April 1 or within 45 days of the bulk What is the basis for my assessment?

5 Determines a property's true market value st must also be submitted to and approved by mailing of the Assessment Notices; or May 1. An assessment is an opinion of value by a during an appeal, they are required to where a municipal-wide revaluation or the County Tax Board. Should the Tax Board licensed professional. For an assessed value compare true market value to taxable municipal-wide reassessment has been disapprove the stipulation, a formal appeal to be considered excessive or discriminatory, assessed value. implemented. *As per Public Law 2013, hearing would then be scheduled. it must be proved that the assessment does chapter 15, the appeal filing date for Will the tax appeal hearing be private?

6 Not fairly represent one of two standards: If the ratio of assessed value to true value Monmouth County residents is January No. All meetings of the County Board of 1. True Market Value Standard exceeds the average ratio by 15%, the th Taxation are public meetings. 15 . Call the Monmouth County Tax Board After a revaluation, all assessments in the assessment is reduced to the common level. at (732) 431-7404 for information or go to When are tax appeal hearings held? municipality must be 100% of true market Tax appeal hearings are generally held Example value as of October 1 of the previous year. ID=134. Once filed, a hearing before the annually within 3 months of the April 1 or May Director's Ratio = 85%.

7 October 1 pre-tax year is the annual Common Level Range = County Tax Board is scheduled. The Tax 1 filing deadline (or between the December 1. assessment date. All evidence for a tax True Value = $95000 Board consists of members (commissioners) filing deadline for added and omitted st appeal should precede the October 1 Assessment = $94000 appointed by the Governor. Tax Board assessments and Jan 1.) Because assessment date, especially property Ratio = ($94000 $95000) Commissioners primarily hear disputes adjournments are ordinarily denied, you sales used for comparison. Judgment = Reduction in assessed value involving assessments.

8 Hearings are usually should make every effort to attend your 2. Common Level Range Standard New Assessment = $80750 ($95000 x 85%) scheduled during the day, but some Boards hearing. If you miss or do not attend your To explain the common level range you However, if the assessment falls within this schedule differently. Individual taxpayers may hearing without receiving a written notice of must consider what happens after a common level range, no adjustment is made. represent themselves. Business entities other postponement, you may assume the case has revaluation in your town is completed. than sole proprietorships must be represented been dismissed for lack of prosecution.

9 External factors such as inflation, Example Judgments for lack of prosecution are final by an attorney. The taxing district is the recession, appreciation, and depreciation Director's Ratio = 85% for the current year and may not be further Common Level Range = opposing party represented by the municipal cause values to increase or decrease at attorney. The assessor or an appraiser may appealed to New jersey Tax Court. True Value = $95000. varying rates. Other factors such as appear at the hearing as an expert witness. What is good evidence to convince the Tax Assessment = $90000. physical deterioration may change Who is an expert witness?

10 Board to reconsider an assessment? Ratio = ($90000 $95000). property values. If assessments are not Judgment = No change in assessed value Besides your municipal assessor, an expert As the appellant, the burden is on you to adjusted annually, a deviation from 100% If the assessed value to true value ratio falls witness is anyone employed as a real estate prove that your assessment is in error, of true market value occurs. below the common level, the Tax Board must appraiser, and designated as such from a unreasonable, excessive, or discriminatory. increase the assessment to the common level. legitimate association of professionals , You must suggest a more appropriate value by showing the Tax Board the market value of If I recently bought my property, is this appeal is frozen for the assessment year and the property as of October 1 of the pretax purchase price considered?