2013 saw the enactment into law two pieces of legislation effecting real property taxation in New Jersey. The first established a demonstration project which potentially could have a radical effect on the administration of tax appeals in New Jersey. This law will be discussed in this month's issue. The second will affect farm properties that are subject to the Farmland Assessment Act of 1964 and the administration of the Act. It too will bring about significant changes but will be discussed in an upcoming issue.
On a demonstration or trial basis, significant changes in the administration tax assessment appeals are in store for 2014 in Monmouth County. In March of this year, the Governor signed into law P.L. 2013, c. 15 which is being implemented next year. The provisions of this law will be effective in Monmouth County which volunteered to participate as a demonstration county. As an owner or in many cases as a tenant, your right of appeal on property located in Monmouth County will be affected by procedural changes radically altering the timetable for filing and adjudicating an appeal. Immediate attention must be paid by taxpayers as the most significant change affecting tax payers is the new deadline established for filing a Tax Appeal. Under previous law, the deadline throughout New Jersey was April 1 (May 1 for properties in municipalities undergoing a reevaluation or reassessment). In Monmouth County municipalities, the deadline will now be January 15th, a full 2½ months earlier.
Where previously assessment cards were mailed to property owners on or around February 1st of the tax year, in Monmouth County the assessment cards were mailed to taxpayers last month. These cards confirm the existing assessment and the assessment for 2014.
The purpose of the law is to create "a real property assessment demonstration program to demonstrate a more cost-effective and accurate process of real property assessment administration". The law establishes a cap of four counties that can participate; however, only Monmouth County has chosen to participate in 2014. The underlying goal of the legislation is to stem losses municipalities incur from successful tax assessment appeals. Under current law, municipalities suffer the brunt of such losses even though they collect taxes for a number of governmental units (County, school district, fire district and the like). The law will require that future revaluations and reassessments of real property be performed on a County data system which system will also be used for compliance plans, assessment maintenance and added assessment calculations. A steering committee was created by the law for the administration of the demonstration project in participating counties. County tax board orders to municipalities to revalue now have more bite as the County Board can conduct a revaluation if the municipality fails to comply with its order.
The goal of this legislation is for appeals to be conclusively decided by the County Board of Taxation before the tax rate is established for a municipality and participating governmental units. Thus, County Board appeals should be concluded by April where, under the current system, appeals are not concluded until July or later.
The program is designed to run for four full tax years. After that, each demonstration county shall submit a report summarizing the successes and problems of their programs and containing recommendations for further legislative or administrative changes to the demonstration project.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
