This information was developed by the Hunterdon County Board
of Taxation to assist taxpayers in properly preparing for tax appeal hearings.
The brochure includes general information derived from New Jersey laws which
govern tax appeals. Administrative Code Title 18:12 and New Jersey Statues Titles
54:3 et seq and 54:4 et seq.
This information is provided
as an aid to the property owner, but it should not be considered as an all inclusive
guide. Most importantly, it is essential that a taxpayer understands that he
must prove that his assessment is unreasonable compared to a market value standard.
Your current assessment is by law assumed to be correct. You must overcome this
presumption of correctness to result in an assessment change.
What is the basis for my Assessment?
In order for an assessment to be deemed excessive or discriminatory,
a taxpayer must prove that an assessment does not fairly represent one of two
- Following a revaluation, all assessments must represent
100% of true market value as of the previous October 1. The October 1 pre-tax
date is called the annual "assessment date." All evidence submitted
in a tax appeal must precede the assessment date, especially property sales
used as comparables.
- The other stand is the "common level" or common
level range established in your municipality. To explain the common level
rang you must consider what happens following a revaluation. Once a revaluation
is completed, external factors such as inflation, appreciation and depreciation
cause values to increase or decrease at varying rates. Other factors such
as physical deterioration may contribute to changes in property values. Obviously,
if assessments are not adjusted annually, a deviation from 100% of true market
value will occur.
The State Division of Taxation annually conducts a fiscal year sales survey, investigating most property transfers that occur in your community with your local assessor assisting. Every sale is compared individually to every assessment to determine an average level of assessment in a municipality. An average ratio is developed from all property sales to represent the assessment level in your community. In any year, except the year a revaluation is implemented, the common level of assessment is the average ratio of the district in which your property is situated, and is used by the Tax Board to determine the fairness of your assessment.
How do I know if my Assessment
The New Jersey Legislature adopted a formula known as Chapter
123 in 1973 to test the fairness of an assessment. Once the Tax Board has determined
the true market value of a property during an appeal, they are required to automatically
compare the true market value to the assessment. If the ratio of the assessment
to the true value exceeds the average ratio by 15%, then the assessment is automatically
reduced to the common level. However, if the assessment falls within this common
level range, no adjustment will be made. If the assessment to true value ratio
falls below the common level, the Tax Board is obligated to increase the assessment
to the common level. This test assumes that the taxpayer will supply sufficient
evidence to the Tax board so that they may determine the true market value of
the property subject to the appeal. You should inquire into your district's
average ratio before filing a tax appeal. This ratio changes annually on October
1, for use in the subsequent tax year.
Director's Ratio = 85%
Common Level Range = 72.25% to 97.75%
True Value = 95000
Assessment = 90000
Ratio = 94.74% (90000 / 95000)
Judgment = No Change
How do I file a Tax Appeal?
DOWNLOAD A PETITION FOR APPEAL
In order to file a tax appeal, you must file the A-1 Petition of Appeal form with the Hunterdon County Board of Taxation, by the statutory deadline. The instructions are included with the appeal form, as well as the filing fee requirements. The statutory filing deadline is April 1st, or forty-five days from the mailing of the notice of assessment, for most municipalities. Only municipalities which have undergone a district-wide revaluation or reassessment have a May 1st filing deadline. If you are unable to download the petition of appeal form, using the link above, you may contact our office at (908) 788-1174 to have a form mailed to you.
What is a Tax Appeal Hearing and who
will hear my Appeal?
Once you have filed your tax appeal, a hearing before the County Board of Taxation is scheduled. The County Tax Board consists of five members appointed by the Governor and confirmed by the State Senate. The Tax Board Commissioners are appointed primarily to hear disputes involving assessments. Tax appeal hearings are conducted through the months of May and June. The hearings are typically scheduled during the daytime. The municipality is the opposing party and will be represented by the municipal attorney. The assessor or an appraiser may appear at your hearing as an expert witness. DOWNLOAD A PETITION FOR APPEAL
Is a Tax Appeal Hearing always
A hearing is always necessary. If the assessor, municipal
attorney, and taxpayer agree to a settlement or the issues are otherwise resolved,
it may not be necessary for you to attend your hearing, particularly if a settlement
stipulation form is submitted to the Tax Board for their approval.
When are Tax Appeal Hearings held?
Tax appeal hearings are generally held after the April 1
annual deadline. Adjournments are generally denied. It is suggested that you
make every attempt to attend your hearing. If you miss your hearing and have
not received a written notice postponing your case, then you may assume that
the case has been dismissed. If you do not attend your hearing the case will
be dismissed, for "lack of prosecution."
What is good evidence to convince the
Tax Board to reconsider an assessment?
You cannot appeal the taxes on your property since the taxes
are the result of the local budget process. You must pay the collector all taxes
and municipal charges up to and including the first quarter of the tax year.
Remember, the burden is on you, the appellant, to prove that your assessment
is unreasonable, excessive, or discriminatory. It is necessary for you to prove
at the onset that your assessment is in error. It is also necessary for you
to suggest a more appropriate value.
The taxpayer must be persuasive and present credible evidence.
Credible evidence is evidence supported by fact, not assumptions or beliefs.
Photographs of both the subject property (the property subject to the appeal)
and comparables are useful in illustrating your argument. Factual evidence concerning
special circumstances is necessary. For example, if the property cannot be further
developed for some reason, evidence to that effect must be provided.
The most credible evidence is recent comparable sales of
other properties of a similar type in your neighborhood. Remember, if you are
going to discuss comparable sales a listing of 3 to 5 sales must be attached
to your appeal at the time of filing. Your assessor must receive copies of your
comparables at least 7 days in advance of your hearing in order for them to
be discussed. All sales of all properties are available for your review at the
County Tax Board. Comparable means that most of the characteristics of your
property and the neighboring sale are similar. You should be knowledgeable of
the conditions of the sales you cite including financing, and be able to give
a full description of the properties. Some of the characteristics that would
make a property comparable are recent sales price (preceding October 1 pre-tax
year), similar square footage of living area measured from the exterior, similar
lot size or acreage, proximity to your property, the same zoning use (e.g. duplex
in a duplex zone) and similar and and style structure.
If I recently bought my property, how
is this purchase considered?
An assessment is an opinion of value. Uniformity of treatment
dictates that adjustments not be made simply due to a recent sales price. For
various other reasons the subject's sales price may not necessarily be either
conclusive evidence of the property's true market value, or binding upon the
Tax Board. An examination of the circumstances surrounding a sale is always
Will the appeal be private?
No. All meetings of the Board of Taxation are public meetings.
Are there special rules for commercial
Yes. Owners of rental income properties must supply an income
statement at the time of filing on special forms provided by the Tax Board.
Since the income generated by a property has a direct bearing on the owners
ability to market the property, and therefore its value, this evidence may be
useful on arguing both sides of an appeal.
Who is an expert witness?
Besides your municipal assessor, anyone whose occupation
is a real estate appraiser, and whose designation as such is from a legitimate
association of professionals, is considered an expert. An expert's qualifications
may be challenged by the municipal attorney at the hearing.
In addition, if you intend to rely on expert testimony at
your hearing, you must supply one copy of an appraisal report to the assessor,
and one copy for every member of the County Tax Board and Tax Administrator
at least 7 days in advance of the scheduled hearing. The appraiser who completed
the report must be available at the hearing to give testimony and to afford
the municipality an opportunity to cross-examine the witness.
May I further appeal the judgment of the Tax Board if I am still dissatisfied?
If you are dissatisfied with the judgment rendered by the Tax Board, you will have 45 days from the date your judgment was mailed to file a further appeal with the Tax Court of New Jersey. If your property is assessed for more than $1,000,000 you may file directly with the Tax Court, by April 1st annually.
In summary, a taxpayer filing an appeal should consider
the following questions.
- What was the market value of my property on the preceding
assessment date of October 1?
- Can I support my conclusion of market value with credible
- Is my property assessed in excess of its market value
if a reassessment/revaluation was implemented in the current tax year? If
a revaluation/reassessment was not implemented, does my assessment exceed
market value or does the ratio of my property assessment to its market value
exceed the upper limit of the common level range?