january 2010

Commercial Property Tax Appeals - An Overview

The continued decline of the real estate market in New Jersey has resulted in many properties being over-assessed for purposes of local property taxation. In this challenging economic climate, commercial, industrial and multi-occupancy property owners are particularly well-served to consider whether an appeal of their 2010 local property assessment makes sense as a means to reduce their local real estate taxes.

Basic Facts and Important Dates

Prior to February 1, 2010, the local assessor is to notify each taxpayer by mail of the 2010 assessment and the 2009 taxes.

If the municipality has conducted a municipality-wide revaluation or reassessment, the assessment will be in the amount of the assessor’s estimate of the market value of the property (the so-called “true” value) as of October 1, 2009. Otherwise, the assessment will be in the amount of the assessor’s estimate of the market value of the property as of October 1, 2009, adjusted by the average ratio of the assessed value to the market value of properties in the municipality. This average ratio is determined by the State Director of Taxation.

An appeal from the 2010 assessment must be filed on or before April 1, 2010. The appeal is to be made to the County Board of Taxation, except that if the original assessment exceeds $1,000,000, an appeal can be made directly to the New Jersey Tax Court. Direct appeals to the Tax Court must also be made by April 1, 2010, unless the assessment is the result of a municipality-wide revaluation or reassessment, in which case the appeal deadline to the Tax Court is May 1, 2010.

Next Steps

If you are interested in exploring your individual property tax appeal circumstances and pursuing a tax appeal, Farer Fersko is able to assist commercial, industrial and multi-occupancy property owners in these efforts.

Drawing upon our extensive experience in all aspects of real property valuation, we will initially undertake a baseline analysis and evaluation to determine the viability of pursuing a tax appeal on your behalf. If you decide to appeal, Farer Fersko will prepare, file and prosecute the appeal, while constantly seeking to obtain a reduced assessment in a cost-effective manner.

For additional information concerning property tax appeals or to schedule a consultation, please contact John J. Reilly.