NJ Property Tax Appeal

Even though home prices in New Jersey have fallen,  many local governments have failed to adjust property tax valuations.  What this means is that many homeowners currently have property tax assessments based on home prices which existed during the peak of the market in 2005 & 2006.

Faced with such inequality, homeowners have a constitutional right to appeal.  A successful appeal could potentially save you thousands of dollars — providing your municipality doesn’t raise their tax rate at the same time.  A higher tax rate will negate any savings you could gain from an appeal.

You can also appeal your tax rates whenever reassessments occur, not only during economic downturns in the market.  An appeal can not only improve your financial situation, but will educate you as to the value of your home and the properties around you.  Each assessment period conduct the necessary research to determine if you qualify for an appeal. This process involves checking for  discrepancies in the math of your taxation board and documenting comparable properties located  near you within the same price range that are paying less taxes than you are.

You can do this yourself but it’s easier with professional help.  Appraisers and attorneys can appeal taxes on your behalf.  Appeals boards are generally more likely to accept data presented by professionals than someone with no experience. Many such thirdparty cases are won with larger settlements issued to  homeowners.

To start the process visit the offices of your local assessor or their website for the paperwork you’ll need for the appeal if you want to do this yourself.  Have your local realtor provide the MLS sales data. You’ll search for sales recorded from January 1^st of the previous year to October 1^st of the current year. You’ll need to provide at least three examples in order to prove your case.

Use a tax appeal calculator to determine if you’re eligible for an appeal. This applies your current taxes and the value of your home with what the city assumes your home is worth in the market. Using these numbers the calculator differentiates between the taxes you pay and the cities assessment versus what the payment would be in the true market. You’ll need to calculate this to win an appeals process. If your home falls outside the range of 15% from the actual True Market Value you could win the appeal.