Andrew S. Kessler Esq.
Marcus Brody Ford Kessler & Sahner
Tel. – 973-740-1200
Fax. – 973-994-2767
askessler@marcusbrodylaw.com     

Date: January 2011                                           

TAX APPEAL REPORT

If you own real property or are a tenant responsible for real property tax payments, you should have your assessment reviewed to determine whether or not a real estate tax appeal should be filed to reduce the assessment and tax payments.  Many property owners mistakenly assume that if the assessment is less than the real property fair market value a tax appeal is unwarranted.  Actually, most municipal assessments require application of the state municipal ratio (in order to determine the equalized assessment) before comparison to fair market value.  Our firm is available to assist in the analysis of potential real property tax appeals at a no fee, no obligation basis.  If we recommend the filing of an appeal we will handle the appeal on either a contingency or hourly basis at the client’s election.

i f you are not the property owner but a tenant who pays the property tax your right to file a tax appeal has been clearly established.  This process is codified by Tax Court Rule 8:5-3 which requires the filing tenant-taxpayer to serve the owner with a copy of the Tax Appeal. Therefore, net tenants of an industrial or commercial building should seek the 2010 assessment from the landlord and evaluate the prospects of appealing the assessment.

Now that October 1, 2009 has passed municipal assessors will be setting real property assessments for Tax Year 2010 and, for most municipalities, Notice of Assessment cards will be received on or before February 1, 2010.  At times municipalities are delayed and receive extensions for service of these notifications. For 2010 revaluation or reassessment towns the Notice of Assessment card will be received on or before March 1, 2010.

Remember, the 2010 assessment, after application of the 2010 ratio, should reflect fair market value as of October 1, 2009.  During non-revaluation years the municipal assessment may miss the fair market value target and still be acceptable under New Jersey Law.   New Jersey Statute  54:51A-6  requires assessment revision where the properties true or fair market value exceeds the permitted range.  We recommend that assessments be evaluated each year, as municipal ratios and the permitted range annually change. 

During a revaluation or reassessment year there is no permitted range to calculate as the assigned assessment should reflect 100% of fair market value.   Recently, municipalities that have not undergone revaluation for many years have completed revaluations.  After decades without revaluation the City of Newark completed a revaluation in 2003 and since 2003 the Newark ratio has plummeted significantly. Following the example of Newark recent revaluations have taken place in East Orange, Irvington, Montclair, Paterson, Englewood and many other municipalities.

Except for municipalities undergoing 2010 revaluations or reassessments April 1, 2010 is the deadline for filing 2010 Tax Appeals. May 1, 2010 is the filing deadline for municipalities undergoing 2010 revaluations or reassessments.  There is no excuse for late filing and if the deadline is not met the late filed appeal will be dismissed.  Extensions of the April 1 and May 1 deadlines may be set for an individual municipality by the County Tax Board for that municipality.  Such extensions should not be anticipated.  All properties that have assessments of more than $1,000,000 may be appealed by filing either with the State Tax Court or the County Tax Board for that municipality.  Properties with assessment of $1,000,000 or less must initially file with the County Tax Board.*    

Before making your choice of attorney, you should give this matter careful thought.  The selection of an attorney is an important decision. 
If this letter is inaccurate or misleading, report same to the Committee on Attorney Advertising, Hughes Justice Complex, CN037, Trenton, New Jersey 08625.

*Except for added and omitted assessment appeals the direct filing jurisdiction of the Tax Court has been increased from over $750,000 to over $1,000,000, effective immediately.