Deadline to File Real Estate Tax Appeals in New Jersey is Rapidly Approaching

The deadline to file real estate tax appeals in New Jersey to challenge the assessment of real property is April 1 (or 45 days from the bulk mailing of assessment notices, whichever is later). Given widespread declines in market values in recent years, there may be an opportunity for property owners — particularly owners of multifamily, commercial and industrial property — to reduce their assessments, and hence their property taxes, by filing a tax appeal.

A tax appeal may be advantageous not only because of the opportunity to achieve a reduction in the property’s assessment for the present year, determined based on the property’s value as of the preceding October 1, but under the Freeze Act, the new assessment cannot be changed for the next two years. Therefore, the savings arising from a successful tax appeal can be substantial assuming the tax rate remains relatively constant. However, there is also some risk in that if during the appeals process the current assessment is determined to be below the acceptable range, the assessment can be increased.

Note also that if this is the first tax year following implementation of a municipal-wide revaluation or reassessment, the deadline for filing a tax appeal is May 1.

Tax appeals for properties having an assessed value of greater than $1 million may be filed directly with the Tax Court, whereas tax appeals for properties having an assessed value of less than or equal to $1 million must be filed with the County Tax Board. Business entities must be represented by an attorney in tax appeal proceedings.

Gibbons has represented a broad range of commercial and industrial property owners in tax appeal proceedings. If you are considering filing a tax appeal, please contact us for more information.

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