New Jersey

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State of New Jersey Property Taxes


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State Tax Summary
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The state of New Jersey names the real property tax Property Tax. The official value standard states, The assessor after . examination and inquiry, determines the full and fair value of each parcel of property situated in the taxing district at such price as, in his judgement, it would sell for at a fair and bonafide sale by private contract on October 1. Full and fair value is what a willing buyer would pay a willing seller for land, namely, the price property would sell for at a fair and bona fide sale by private contact. New Jersey statues, article 5 assessment of real estate section 54:4-23.

New Jersey on April 3, 2007, updated the homestead credits for tenants and homeowners, and replaced the former rebate program. The benefits are a percentage of the property tax, up to $10,000, that were paid in the previous year. The percentages are based on income levels, up to $250,000. P.L. 2007, c. 62, caps property tax at 4% for school districts, county and local governments. The tax levy cap is for budget years July 1, 2007, to June 30, 2012. Personal exemptions are for homeowners, renters, seniors, those with disabilities and veterans. Personal tax rebates are for seniors, disabled persons, and surviving spouse. There are no personal property taxes. There are exemptions for hospitals, cemeteries, government, religious, charitable, educational, and historical property. Taxpayers have four levels in the appeal procedure, if they want to appeal after receiving their tax notices. The Rochester Area Service Center (ASC) provides tax service for New Jersey.

Responsible agency

  • New Jersey Department of Treasury
  • Division of Taxation
  • Property Administration
  • CN 251
  • Trenton, New Jersey 08646-0251
  • Voice (609) 292-7974
  • FAX (609) 292-9439

Property tax calendar

  • Assessment date October 1

Contents

  • Valuation Notice Date

Notices are sent third quarter for one billing taxing authorities and again at first quarter for two billing taxing authorities. Taxpayer should receive tax bills by June 14 and December 1.

  • Appeal Deadline

30 days from date of mailing of notice or July 15

  • Bill Payment Date

Two bills; four installments: February 1, May 1, August 1, November 1. The amounts are set by local taxing entities. Some taxing authorities offer a 10 day grace period, the bill due date is the tenth day of the month.

Property tax rates and dates

  • Annual assessment of real property

Yes

  • Classification of property

All residential is Class I. Vacant property is Class IV.

  • Collections

Taxes are collected one year in arrears

  • Fiscal year

July 1 through June 30

  • Level of government responsible for assessment

Municipality

  • Reassessment cycle

Every 4 years

  • Tax Calculation Rate

The tax calculation rate varies by local taxing authorities or municipalities.

Residential Exemptions

Exemption claims must be filed to receive exemption from specially treated property. New Jersey offers exemptions and rebates.

  • Disabled Person deduction

The Homestead Property Tax Relief program is a yearly property tax deduction for homes owned and occupied by person within an annual income limit determined by the local taxing authority. To be eligible a person must be a resident of New Jersey as of October 1; be age 65 or older as of December 31; own the property as of October 1; be a resident of New Jersey and living on the property as of October 1 and have an income not to exceed an amount determined by local municipality

  • Senior citizen exemption

The Homestead Property Tax Relief program is a yearly property tax deduction for homes owned and occupied by person within an annual income limit determined by the local taxing authority. To be eligible a person must be a resident of New Jersey as of October 1; be age 65 or older as of December 31; own the property as of October 1; be a resident of New Jersey and living on the property as of October 1 and have an income not to exceed an amount determined by local municipality.

  • Veterans and Widows of Veterans

A veteran must apply for the deduction and must meet these requirements as of October 1 of the pretax year: 1.) Citizenship of the United States; 2.) Legal resident of New Jersey; 3.) Active service in the armed forces; 4.) Active service in time of war; 5.) Honorable discharge and 6.) Ownership of property.

  • Surviving Spouses of Veteran

To qualify for a property tax deduction, the surviving spouse of a veteran must have been married to the veteran at the time of death, and the veteran must have qualified for the Veteran deduction. The surviving spouse, as of October 1, must not have remarried, must be a resident of New Jersey, must hold legal title in the property, must prove that the deceased as a United States citizen and resident of New Jersey at time of death, and must apply for the deduction in property tax.

Residential Rebates

  • Disabled Person rebate

Additional homestead tax rebates are available to disabled persons that are permanently and totally disabled, and unable to engage in employment.

  • Senior citizen rebate

Additional homestead tax rebates are available to seniors, age 65 years or older prior to December 31 of the pre-tax year. There are no restriction on the income level for this additional rebate.

  • Surviving Spouse rebate

To qualify for a property tax rebate, the surviving spouse of a veteran must have been married to the veteran at the time of death, and the veteran must have qualified for the Veteran deduction. The surviving spouse, as of October 1, must not have remarried, must be 55 years of age or older, must be a resident of New Jersey, must hold legal title in the property, must prove that the deceased as a United States citizen and resident of New Jersey at time of death, and must apply for the rebate in property tax.

Commercial Exemptions

  • Agriculture Personal property exemption

Property used for the Farmland Assessment act, and land not less than five acres may qualify for use value assessment. The land must actively be devoted to agriculture operations for two consecutive years. An assessment is made regardless of commercial planted crops, trees, shrubs, and vines.

  • Conservation property

A taxpayer must file a declaration with the local county assessor to claim an exemption for a seawall, jetty, groin or dike for the control or prevention of flooding or erosion caused by waters.

  • Enterprise zones

New and existing businesses may qualify for a city granted property tax exemption if they locate in economically distressed areas. There are abatement for up to five years for qualified residential property.

  • Pollution control property

A taxpayer must file a declaration to exempt property used exclusively for water or air pollution control. Certified equipment, facilities, or devices to abate or prevent pollution in the atmosphere or waters of New Jersey are exempt.

  • Rehabilitation district

Local governments may grant abatements and establish obsolete property rehabilitation districts for up to 12 years for rehabilitated commercial property and commercial housing property located in rehabilitation districts. To qualify for tax abatements the commercial property must be used to manufacture and process good or materials, conduct high-technology activity, and create or synthesize biodiesel fuel.

Tax Collector and Officials

New Jersey tax assessors are appointed to four year terms; a minimum high school education is required; and special courses and certificates are required. The county treasurer is the ex-officio collector in all counties. County Assessors maintain and set property valuations. The County Auditor certifies property valuations. The County Treasurer collects current and delinquent property tax.

Forms

Specific deduction claim forms are available from

Forms due dates

Applications for deductions against real property must be filed with an affidavit to the local tax collector in New Jersey by May 1 and must be filled again if the property changes owners. All deductions for real property require that the ownership must be recorded as of March 1 of the assessment year for taxes payable the following year.

State assessor's manual

  • Handbook for New Jersey Assessors
  • New Jersey Department of Treasury
  • Division of Taxation
  • Property Administration
  • CN 251
  • Trenton, New Jersey 08646-0251
  • Price $25.00

How property tax determined

Residential property is assessed at market value and the assessor determines the fair market value. The assessor may use one of three methods.

  • Cost Approach

At current labor and material prices, estimate how much it would take to replace the property with one similar to it. Use this method when there are no sales of comparable properties.

  • Income Approach

For an apartment or office building, estimate how much income the property can produce.

  • Market Approach

Use other comparable properties that have sold recently, determine the most probable sales price of the subject property.

Appeal Procedure

  • First

Try to resolve the problem in an informal meeting with the tax assessor in the local county, on or before December 31 of the pretax year, after receiving an assessment notice.

  • Second

Next, if not satisfied with the informal meeting, file a formal appeal with the Local County Board of Taxation. The deadline for filing is April 1. The completion date for hearings is November 15.

  • Third

If not satisfied, appeal in writing to the New Jersey Tax Court, within 45 days of the decision from the County Board of Taxation.

  • Fourth

If not satisfied, request a hearing before the New Jersey state Supreme Court.

Additional tax classifications

  • Agricultural property tax

Farm regular and Class II and Farm qualified is Class III.

  • Commercial property tax

None available

  • Personal property tax

There is no tax on personal property.

Additional tax bills and charges

  • Added assessment bills

An added tax bill are issued for property improvements and cover one year. An added bill has three installment due dates: November 1, February 1, and May 1. The basic assessment increases after the first bill, but no other assessment increase will be added.

  • Construction Work in Progress

An occupancy tax is imposed in New Jersey in lieu of property tax, on all new construction during the construction year . The tax amount is the same as if the structures were on the assessment rolls on October 1, but prorated for portion of the year based on occupancy

  • Delinquent taxes

Delinquent balances are applied to subsequent bills. A taxpayer may apply to have late charges, interest and property taxes canceled due to undue hardship or property damaged by a casualty loss event . No notices are sent for delinquent taxes in Michigan.

  • Omitted Assessment bills

Omitted or rollback assessment bills can cover three years. They assess farm land of five acres or more that was divided into smaller parcels and redeveloped.

  • Penalty and Interest charges

An 8% penalty is assessed on the first $1500; an 18% penalty is assessed on the remaining tax due. Penalties are assessed from the due date. Municipalities may assess an additional 6% penalty on any delinquent tax in excess of $10,000 if not paid by the end of the fiscal year. The municipality must pass a resolution to assess and collect any additional late fee. If the tax bills are mailed late and not paid by the new due date, penalties may be assessed from the original statutory due date.

Current Legislation and Pending Issues

References





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