Property Tax Appeal Analysis Includes:

• Evaluation of the Three Approaches to Value: Analyzing cost, income, and market data methods to determine the strongest position for appeal.

• Assessment Review: Examining reassessments, revaluations, added assessments, and any increases in assessed value.

• Market Condition Analysis: Incorporating current market trends to support assessment reduction opportunities.

• Obsolescence Identification: Identifying physical, functional, or economic obsolescence that may justify a lower assessment.

• Comparative Assessment Review: Reviewing assessment records for the subject property and comparable properties to ensure uniformity and accuracy.

• On-Site Property Inspection: Conducting property inspections when necessary to verify key data.

• Tax Savings Estimation: Estimating potential property tax savings based on appeal outcomes.

🏠 New Jersey Property Tax Information

📘 Understanding Chapter 123

Chapter 123 of the Laws of New Jersey (1973) established a uniform and legally permissible level of property assessments across all NJ municipalities.
Each year, the Director of the Division of Taxation calculates an equalization ratio based on recent property sales within each taxing district.
This ratio determines whether a property’s assessment is equitable compared to its true market value.

📅 Tax Appeal Filing Deadlines

• April 1st – Standard filing deadline (unless extended by law)

• May 1st – For revaluation or reassessment districts

• January 15th – For Monmouth, Gloucester, and Burlington Counties
  (applies to assessments $1,000,000 and below)

Note: Market value is determined as of October 1st of the pretax year.

🏛️ Where to File Your Appeal

• Under $1,000,000: File with the County Tax Board

• $1,000,000 or more: File directly with the State Tax Court

📂 Important Reference Links

• Chapter 123 Guidelines

• 2023 Equalization Ratios

• Rule 8:12 – Filing Fees

• NJ Tax Brochure: Factors Causing Over-Assessment

⚠️ Common Causes of Over-Assessment

• Incorrect land and/or building data

• Misapplied depreciation (physical, functional, or external)

• Errors in the cost, market, or income approach to value

• Misclassification of property type

• Clerical or mathematical mistakes

• Unrecognized property issues such as:

  • Wetlands

  • Contamination

  • Easements

  • Deed restrictions

💡 The Taxpayer’s Common Misconception

Many NJ property owners believe their assessed value equals their fair market value — but that’s not true.
To find the property’s equalized market value, the equalization ratio must be applied:

📊 Example

If Linden, NJ (Union County) had a 2010 equalization ratio of 45.97% and your property was assessed at $1,500,000:

$1,500,000 ÷ 0.4597 = $3,262,998

Your property is being taxed as if it’s worth over $3.26 million, not $1.5 million.

🧾 In Summary

Many taxpayers never file appeals simply because they’re unaware of their property’s true taxable market value.
Understanding Chapter 123 and reviewing your assessment could reveal significant potential tax savings.