Real Estate Property Taxes are the result of the local budget process and may not be appealed but the property’s assessment value may be, which if you appeal your assessed value, your yearly property taxes may change.
With the onset of declining real estate home values in NJ, a number of NJ homeowners or taxpayers are concerned that they are simply paying too much in real estate property taxes. In this segment, we will discuss the process and procedures related to appealing your real estate property taxes and whether or not if it is worth your time, energy and money. Everyone’s individual situation is different. This blog post is not intended to advise you on whether or not you have a case to appeal your real estate property assesstment. This post is intended to educate you in the process and procedures. For more information on tax appeals, you should download:
A GUIDE TO TAX APPEAL HEARINGS Having said the above, a NJ taxpayer considering an appeal should understand that he/she must prove that his/her assessed value is unreasonable compared to a market value standard. By law, your current assessment is assumed to be correct. You must overcome this presumption of correctness to obtain an assessment change.
What is the basis for my assessment? An assessment is an opinion of value by a licensed professional. For an assessed value to be considered excessive or discriminatory, it must be proved that the assessment does not fairly represent one of two standards:
- True Market Value Standard After a revaluation, all assessments in the municipality must be 100% of true market value as of October 1 of the previous year. October 1 pre-tax year is the annual “assessment date.” All evidence for a tax appeal should precede the October 1st assessment date, especially property sales used for comparison.
- “Common Level Range” Standard: To explain the common level range you must consider what happens after a revaluation in your town is completed. External factors such as inflation, recession, appreciation, and depreciation cause values to increase or decrease at varying rates. Other factors such as physical deterioration may change property values. If assessments are not adjusted annually, a deviation from 100% of true market value occurs.
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