"You Have the right to Appeal Your Property Assessment"

NJ Tax Property Tax Information

Chapter 123, Laws of NJ, 1973 established a legal and permissible level of assessments for all of NJ municipalities. Based upon actual sales of properties in each taxing district, the Director of the of Division of Taxation establishes an equalization ratio on a yearly basis that is used in determining if any assessment is equitable in comparison to the property's fair market value.

  • An appeal must be filed by April 1st unless otherwise extended by law.
  • Market value is based on October 1st pretax year.
  • Property assessments under $1,000,000 are filled to the County Tax Board.
  • Property assessments $1,000,000 or more can be filled directly to the State Tax Court.

For Chapter 123: Chapter 123.

For 2011 Tax Ratios: Tax Ratios for 2011.

For filing Fees refer to: Rule 8:12. Filing Fees.

For more information refer to: NJ Tax Brochure Factors Causing Over Assessment

  • Inaccurate land and/or building information
  • Improper application of all forms of deprecation (Physical, Functional, & External Factors) affecting value.
  • Improper analysis & application of the 3 approaches to value (Cost Approach, Market Data Approach, and Income Approach)
  • Misclassification of property type by the municipality
  • Simple mathematical errors.
  • In many cases assessors are not aware of various adverse factors affecting value such as wetlands, contamination problems, easements, or deed restrictions on properties.

Taxpayer's Greatest Misconception
Most Taxpayers in NJ believe the actual property assessment on their tax bill or notice of assessment is the FAIR MARKET VALUE, the assessor is stating the property is worth and therefore feels the assessment is fair.

What they fail to realize is the equalization ratio has to be applied to the assessment (assessment / equalization ratio) to determine exactly what the assessor is actually stating the property's equalized market value.

For example, the 2010 equalization ratio for the City of Linden in Union County is 45.97%. A taxpayer who receives their 2010 assessment notice for $1,500,000.00 is actually being assessed as if the property is today worth $3,263,000.00 ($1,500,000.00 / .4597% = 3,262,998)

In short, many taxpayers never challenge their assessments since they are unaware of their real taxable full value.