Bill Text: NJ A3859 | 2018-2019 | Regular Session | Introduced
Bill Title: Revises law governing assessment of real property.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-05-07 - Introduced, Referred to Assembly State and Local Government Committee [A3859 Detail]
Download: New_Jersey-2018-A3859-Introduced.html
Sponsored by:
Assemblywoman SERENA DIMASO
District 13 (Monmouth)
SYNOPSIS
Revises law governing assessment of real property.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the assessment of real property, amending various parts of the statutory law, supplementing chapter 4 of Title 22A of the New Jersey Statutes, and repealing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) Sections 1 and 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be known and may be cited as the "Technology-Based Real Property Assessment Transition Act."
2. (New section) a. There is established a requirement of technology-based real property assessment in this State, and a 10-year period for municipalities and counties to transition to a technology-based real property assessment system, in order to transform the process of real property assessment to a process that includes: the use of modern technology in every municipality, statutory revisions to the assessment calendar, a mandatory district-wide annual reassessment requirement to set real property assessments at true value, the internal inspection of recent property sales as evidenced by the filing of the deed with the county and the charging of an inspection fee to cover the cost thereof to be paid at the time the deed is filed, and a mandatory 10-year cycle of internal inspections of all real property in every municipality in the State. The provisions of the "Technology-Based Real Property Assessment Transition Act" shall establish a program to be followed by every assessor in the State in order to more equitably distribute the property tax levy among all property taxpayers, provide a more accurate assessment of each parcel of real property in the State, ensure transparency in the real property assessment process, and reduce local costs related to the assessment of real property.
Not later than January 31 immediately following the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), every county board of taxation shall adopt an implementation schedule which reflects the actions required to be taken by each assessor in order to meet the requirements of the "Technology-Based Real Property Assessment Transition Act," over a ten-year period, including the transition to assessors performing mandatory annual reassessments of all real property in their respective jurisdictions. The implementation schedule shall be approved by the county board of taxation, and submitted to the Director of the Division of Taxation not later than August 31. The county board of taxation shall hold at least one public meeting to hear from the public and municipal officials regarding their respective concerns associated with the proposed implementation schedule.
The implementation schedule shall be a public document that provides a 10-year plan outlining the tax years in which the municipal assessor shall revise assessments to the current director's ratio, or to 100 percent if the director's ratio exceeds 100 percent, the tax year in which all assessments shall be set to 100 percent of true value, and the annual requirement of reassessment each year thereafter. The implementation plan may not exceed 10 years. The municipality may petition the county board of taxation to modify the adopted schedule during the course of the 10-year plan, but all municipalities shall set assessments equal to true value no later than the 10th year of implementation.
Not later than April 1 next following the enactment of P.L. ,c. (C. ) (pending before the Legislature as this bill), the county tax administrator of every county board of taxation shall certify to the Director of the Division of Taxation in the Department of Treasury that the county board of taxation is either a State-certified vendor of MOD-IV technology, including computer assisted mass appraisal (CAMA) software, or that the county has contracted with a single State-certified MOD-IV vendor to provide MOD-IV technology, including CAMA software, to all of the municipalities in the county. The county tax administrator or county assessor shall file with the director a copy of its MOD-IV/CAMA certification, or a copy of a valid contract with a State-certified MOD-IV vendor for MOD-IV/CAMA services.
Each county tax board shall pay all of the costs associated with the conversion to the county-based MOD-IV/CAMA system and the associated expansion of the technology infrastructure required to support the centralized system. Each county tax board shall annually provide technical training and financial support for the advancement of the local assessment function through education and technology expansion.
b. There shall be no direct appropriation of State funds used to effectuate the provisions of the "Technology-Based Real Property Assessment Transition Act." Any technical costs shall be paid by each county board of taxation using assessment appeal filing fees collected by the county board taxation pursuant to section 18 of P.L.1979, c.499 (C.54:3-21.3a).
c. (1) Not later than September 1 next following the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), and using its own funds therefor, each county board of taxation shall provide MOD-IV technology and CAMA software to each municipality that does not use the software, at no cost to those municipalities, and shall provide, at no cost to those municipalities, training in the use of the technology and software to the assessors of those municipalities and to their respective staff members. Thereafter, each municipality shall pay an annual fee per each taxable line item in the municipality to the county board of taxation to cover the cost of the county providing the MOD-IV and CAMA service to the municipality. The amount of the annual fee shall be set by the county board of taxation. Annual MOD-IV/CAMA service fees paid by municipalities shall be used exclusively by county boards of taxation to defray costs associated with the administration and advancement of the "Technology-Based Real Property Assessment Transition Act" and its associated services and technologies.
(2) Beginning on October 1 next following the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), every county shall operate under the countywide implementation schedule developed by the county tax administrator or county assessor pursuant to subsection a. of this section.
d. Every assessor shall utilize the same property assessment software as is used by the county tax board, and provided to the municipalities or county assessor by the county tax board pursuant to subsection c. of this section. Every real property assessment function required to be performed by an assessor by law, or by rule or regulation adopted pursuant to law, shall be performed using the MOD-IV technology and the CAMA software provided by the county board of taxation to the assessor.
e. In accordance with the provisions of this section and existing statutory law, or any rule or regulation promulgated pursuant thereto, every county board of taxation shall publicly adopt a transition schedule for each municipality within the county. The transition schedule shall not exceed 10 years. The municipality may accelerate the initial internal inspection rate, including performing 100 percent of inspections in one year.
Beginning in the first year of transition, and in every year thereafter, the assessor shall internally inspect every property for which a deed for the sale or conveyance thereof has been filed with the county recording officer. The cost of these inspections shall be covered by the municipal fee collected pursuant to section 16 of P.L. , c. (C. ) (pending before the Legislature as this bill).
Beginning in the first year of the transition and every year thereafter, every assessor shall attempt to internally inspect no less than 10 percent of the district's line items so that 100 percent of all line items are attempted to be internally inspected every 10 years. Beginning in the first year of transition up until the submission of the first preliminary tax list which reflects assessments set equal to 100 percent of true value, the assessor shall annually review and revise each assessment to the current director's ratio. Every year following the implementation of 100 percent of true value, the assessor shall review and revise every assessment to 100 percent of current true value. During the transition period or any year thereafter, the county board of taxation may compel the implementation of a traditional revaluation of real property in any municipality at such time that the county board of taxation determines the need therefor. If a municipality fails to comply with a districtwide reassessment to the current Director's Ratio, revaluation, or annual reassessment, as appropriate, ordered by the county board of taxation in a timely manner, the county board of taxation shall cause the revaluation or reassessment, as appropriate, to be performed at the municipality's cost. The cost of a revaluation or annual reassessment, as appropriate, shall be directly billed to the municipality, in addition to the apportionment valuation, through the adjustment of the county levy for that municipality pursuant to R.S.54:4-48 and R.S.54:4-49.
3. Section 5 of P.L.1973, c.123 (C.54:1-35b) is amended to read as follows:
5. a. On or before April 1 in each year the Director of the Division of Taxation shall determine the average ratio and the common level range.
b. On or before such date, the director shall mail to the secretary of each county board of taxation and to the assessor, and the municipal clerk of each municipality, a certified list setting forth such average ratio and the common level range determined by him for each taxing district.
c. When a municipality has submitted consecutive tax lists reflecting assessments at 100 percent of true value, the period of sale sampling period shall be from July 1 of the pretax year through June 30 of the current tax year.
d. In order to produce a more accurate calculation of the average sales ratio, sales within the current year sampling period that have experienced assessment changes due to county tax board appeal judgments or approved county tax board corrections of errors shall be calculated from the revised assessment as found in the final tax list.
(cf: P.L.1981, c.393, s.21)
4. Section 1 of P.L.1999, c.278 (C.54:1-35.25b) is amended to read as follows:
1. a. All tax assessor certificates issued prior to the effective date of P.L.1999, c.278 (C.54:1-35.25b et al.) shall expire five years following that effective date and shall be renewed in accordance with the procedure established in this section. All tax assessor certificates issued on or after the effective date of P.L.1999, c.278 (C.54:1-35.25b et al.) shall expire five years after the issuance of the certificate and shall be renewed in accordance with the procedure established in this section.
(1) All tax assessor certificates shall be renewed upon application, payment of the required renewal fee, and verification that the applicant has met continuing education requirements, as set forth in paragraph (2) and paragraph (3) of this subsection. After the initial expiration of any tax assessor certificates following the effective date of P.L.1999, c.278 (C.54:1-35.25b et al.), each renewal period shall thereafter be for a period of three years. The renewal date shall be 30 days prior to the expiration date of the tax assessor certificate.
(2) Prior to the first renewal date of a tax assessor certificate pursuant to P.L.1999, c.278 (C.54:1-35.25b et al.) every applicant for renewal shall, on a form prescribed by the Director of the Division of Taxation, furnish proof of having earned a total of at least 50 continuing education credit hours over the prior five-year period. Thereafter, prior to each succeeding renewal date of a tax assessor certificate, every applicant for renewal shall, on a form prescribed by the Director of the Division of Taxation, furnish proof of having earned a total of at least 30 continuing education credit hours over the prior three-year period. For the purposes of this section, one continuing education credit hour means 50 minutes of classroom or lecture time. After verifying that the applicant has fulfilled the continuing education requirement and after receiving a fee of not less than $50 paid by the applicant to the order of the Treasurer of the State of New Jersey, the Director of the Division of Taxation shall renew the tax assessor certificate. The Director of the Division of Taxation shall determine, by regulation, the circumstances under which an extension of time to complete the requirements for continuing education may be granted by the director.
(3) Commencing January 1, 2018, for any tax assessor of a municipality, and for any county assessor of a county, in which one or more Class 3B (Farm Qualified) properties subject to valuation, assessment and taxation pursuant to P.L.1964, c.48 (C.54:4-23.1 et seq.) are located, prior to every renewal date of a tax assessor certificate issued to that tax assessor pursuant to P.L.1999, c.278 (C.54:1-35.25b et al.), the applicant for renewal shall, on a form prescribed by the Director of the Division of Taxation, furnish proof of having taken, at least once in the prior three years, the continuing education course concerning certain aspects of farmland assessment required to be offered, free of charge, by the Division of Taxation, in conjunction with the Department of Agriculture, pursuant to subsection b. of section 1 of P.L.2013, c.43 (C.54:4-23.3d).
b. There is established within the Division of Taxation in the Department of the Treasury the Tax Assessor Continuing Education Eligibility Board. The board shall consist of six members and be comprised as follows: the Director of the Division of Taxation or his designee, the President of the Association of Municipal Assessors, and the President of the New Jersey Association of County Tax Board Commissioners and County Tax Administrators shall be permanent members. The Director of the Division of Taxation and the President of the Association of Municipal Assessors shall each appoint an additional member who shall serve for a term of two years. The Director of Government Services at Rutgers University shall serve ex officio. Any vacancy in the membership of the board shall be filled for the unexpired term in the manner provided by the original appointment. The first meeting of the board shall be held at the call of the Director of the Division of Taxation, and thereafter the board shall meet annually and shall hold at least one additional meeting within each 12-month period. The board shall establish the curriculum areas and the number of hours in each curriculum area that an assessor shall complete in order to renew certification.
c. When the holder of a tax assessor certificate has allowed the certificate to lapse by failing to renew the certificate, a new application and certificate shall be required. If application is made within six months of the expiration of the certificate, then application may be made in the same manner as a renewal, but with an additional late renewal fee of $50.
d. (Deleted by amendment, P.L.2013, c.15).
e. [In addition to the requirements of this section, to address the introduction to, and competency of, municipal assessors and county tax board personnel with the technology, administrative procedures, and real property appraisal requirements within a demonstration county under a demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104), the county tax administrator of a demonstration county, in consultation with the members of the county tax board of that demonstration county, shall develop a training program to provide annually, free of charge, an additional 10 credit hours of continuing education training concerning the requirements of the real property assessment function in the demonstration county for all assessors, deputy assessors, tax board commissioners, the county tax administrator, and the deputy county tax administrator, practicing within that demonstration county. Attendance at the training program shall be required for each of these professionals, and the county tax administrator of the demonstration county shall annually certify to the Director of the Division of Taxation in the Department of the Treasury that each of these professionals has completed this training. The continuing education credit hours required by this subsection shall be in addition to the requirements of subsection a. of this section, and shall not be used to satisfy any requirements of that subsection. Any person who does not meet the additional continuing education training requirement required by this subsection shall be ineligible to function as an assessor or deputy assessor in any municipality located in a demonstration county until such time as the additional continuing education training requirement has been satisfied.
The Director of the Division of Taxation, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt such regulations as are necessary to effectuate the provisions of this section.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
(cf: P.L.2013, c.43, s.6)
5. Section 19 of P.L.1979, c.499 (C.54:3-5.1) is amended to read as follows:
19. a. The president of each county board of taxation shall annually on or before [August 15] June 1 report to the Director of the Division of Taxation in the Department of the Treasury[, except that the president of a county board of taxation participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104) and the president of a county board of taxation in a county operating under the "Property Tax Assessment Reform Act," P.L.2009, c.118 (C.54:1-86 et seq.) shall make this required report to the director annually on or before June 1. Such] . The report shall be in [such] the form as shall be prescribed by the director and shall contain [such] the information and statistics as may be appropriate to demonstrate for the immediately preceding 3-month period during which tax appeals were heard by the county board: the total number of appeals filed with the county board; the disposition of the various appeals disposed of during that period; the character of appeals filed with regard to the classification of properties appealed; the total amount of assessments involved in those appeals; the number of appeals filed in each filing fee category during that period; and, the total amount of reductions and increases of assessed valuation granted by the board during that period.
b. The Director of the Division of Taxation shall annually review the reports required under subsection a. of this section, and shall include a summary of the information contained therein in the division's annual report.
(cf: P.L.2017, c.306, s.1)
6. R.S.54:3-17 is amended to read as follows:
54:3-17. Each county tax administrator shall annually ascertain and determine, according to his best knowledge and information, the general ratio or percentage of true value at which the real property of each taxing district is in fact assessed according to the tax lists laid before the board. On or before [March 1 of each year, or on or before] May 15 [in the case of a county board of taxation participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104),] the county tax administrator, and the county assessor in a county operating under the "Property Tax Assessment Reform Act," P.L.2009, c.118 (C.54:1-86 et seq.) shall prepare and submit to the county board an equalization table showing, for each district, the following items:
(a) The percentage level established pursuant to law for expressing the taxable value of real property in the county;
(b) The aggregate assessed value of the real property, exclusive of class II railroad property;
(c) The ratio of aggregate assessed to aggregate true value of the real property, exclusive of class II railroad property;
(d) The aggregate true value of the real property, exclusive of class II railroad property;
(e) The amount by which the valuation in item (b) should be increased or decreased in order to correspond to item (d);
(f) The aggregate assessed value of machinery implements and equipment and all other personal property used in business;
(g) The aggregate true value of machinery, implements and equipment and all other personal property used in business;
(h) The aggregate equalized valuation of machinery, implements and equipment and all other personal property used in business, computed by multiplying the aggregate true value thereof by the lower of (1) that percentage level established pursuant to law for expressing the taxable value of real property in the county, or (2) the average ratio of assessed to true value of real property as promulgated by the director on October 1 of the pretax year, pursuant to chapter 86, laws of 1954, for State school aid purposes, as the same may have been modified by the Tax Court;
(i) The amount by which the valuation in item (f) should be increased or decreased in order to correspond to item (h).
A copy of the table shall be mailed to the assessor of each district, and to the Division of Taxation, and be posted at the courthouse, not later than [March 1, or not later than] May 15 [in the case of a county board of taxation participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104) and a county operating under the "Property Tax Assessment Reform Act," P.L.2009, c.118 (C.54:1-86 et seq.)].
(cf: P.L.2017, c.306, s.2)
7. R.S.54:3-18 is amended to read as follows:
54:3-18. The county board of taxation in each county shall meet annually for the purpose of reviewing the equalization table prepared pursuant to R.S.54:3-17 with respect to the several taxing districts of the county. At the meeting a hearing shall be given to the assessors and representatives of the governing bodies of the various taxing districts for the purpose of determining the accuracy of the ratios and valuations of property as shown in the equalization table, and the board shall confirm or revise the table in accordance with the facts. The hearings may be adjourned from time to time but the equalization shall be completed [before March 10, or] not later than May 25 [in the case of a county board of taxation participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104) and a county board of taxation of a county operating under the "Property Tax Assessment Reform Act," P.L.2009, c.118 (C.54:1-86 et seq.)]. At the first hearing any taxing district may object to the ratio or valuation fixed for any other district, but no increase in any valuation as shown in the table shall be made by the board without giving a hearing, after 3 days' notice, to the governing body and assessor of the taxing district affected.
(cf: P.L.2017, c.306, s.3)
8. R.S.54:3-21 is amended to read as follows:
54:3-21. a. [(1) Except as provided in subsection b. of this section a taxpayer feeling aggrieved by the assessed valuation of the taxpayer's property, or feeling discriminated against by the assessed valuation of other property in the county, or a taxing district which may feel discriminated against by the assessed valuation of property in the taxing district, or by the assessed valuation of property in another taxing district in the county, may on or before April 1, or 45 days from the date the bulk mailing of notification of assessment is completed in the taxing district, whichever is later, appeal to the county board of taxation by filing with it a petition of appeal; provided, however, that any such taxpayer or taxing district may on or before April 1, or 45 days from the date the bulk mailing of notification of assessment is completed in the taxing district, whichever is later, file a complaint directly with the Tax Court, if the assessed valuation of the property subject to the appeal exceeds $1,000,000. In a taxing district where a municipal-wide revaluation or municipal-wide reassessment has been implemented, a taxpayer or a taxing district may appeal before or on May 1 to the county board of taxation by filing with it a petition of appeal or, if the assessed valuation of the property subject to the appeal exceeds $1,000,000, by filing a complaint directly with the State Tax Court. Within ten days of the completion of the bulk mailing of notification of assessment, the assessor of the taxing district shall file with the county board of taxation a certification setting forth the date on which the bulk mailing was completed. If a county board of taxation completes the bulk mailing of notification of assessment, the tax administrator of the county board of taxation shall within ten days of the completion of the bulk mailing prepare and keep on file a certification setting forth the date on which the bulk mailing was completed. A taxpayer shall have 45 days to file an appeal upon the issuance of a notification of a change in assessment. An appeal to the Tax Court by one party in a case in which the Tax Court has jurisdiction shall establish jurisdiction over the entire matter in the Tax Court. All appeals to the Tax Court hereunder shall be in accordance with the provisions of the State Uniform Tax Procedure Law, R.S.54:48-1 et seq.
If a petition of appeal or a complaint is filed on April 1 or during the 19 days next preceding April 1, a taxpayer or a taxing district shall have 20 days from the date of service of the petition or complaint to file a cross-petition of appeal with a county board of taxation or a counterclaim with the Tax Court, as appropriate.
(2) With respect to property located in a county participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104) or a property located in a county operating under the "Property Tax Assessment Reform Act," P.L.2009, c.118 (C.54:1-86 et seq.), and except] Except as provided in subsection b. of this section, a taxpayer feeling aggrieved by the assessed valuation of the taxpayer's property, or feeling discriminated against by the assessed valuation of other property in the county, or a taxing district which may feel discriminated against by the assessed valuation of property in the taxing district, or by the assessed valuation of property in another taxing district in the county, may on or before January 15, or 45 days from the date the [bulk mailing of] notification of assessment is completed in the taxing district pursuant to R.S.54:4-38 or section 32 of P.L.1991, c.75, (C.54:4-38.1), as appropriate, whichever date is later, appeal to the county board of taxation by filing with it a petition of appeal; provided, however, that any such taxpayer, or taxing district, may on or before April 1, or 45 days from the date the bulk mailing of notification of assessment is completed in the taxing district, whichever date is later, file a complaint directly with the Tax Court, if the assessed valuation of the property subject to the appeal exceeds $1,000,000.
If a petition of appeal is filed on January 15 or during the 19 days next preceding January 15, or a complaint is filed with the Tax Court on April 1 or during the 19 days next preceding April 1, a taxpayer or a taxing district shall have 20 days from the date of service of the petition or complaint to file a cross-petition of appeal with a county board of taxation or a counterclaim with the Tax Court, as appropriate.
Within 10 days of the completion of the [bulk mailing of] notification of assessment, the assessor of the taxing district shall file with the county board of taxation a certification setting forth the date on which the [bulk mailing] notification was completed. If a county board of taxation completes the [bulk mailing of] notification of assessment, the tax administrator of the county board of taxation shall within 10 days of the completion of the [bulk mailing] notification prepare and keep on file a certification setting forth the date on which the [bulk mailing] notification was completed, and whether the notification was provided on the municipality's Internet webpage, or by mail. A taxpayer shall have 45 days to file an appeal upon the issuance of a notification of a change in assessment. An appeal to the Tax Court by one party in a case in which the Tax Court has jurisdiction shall establish jurisdiction over the entire matter in the Tax Court. All appeals to the Tax Court hereunder shall be in accordance with the provisions of the State Uniform Tax Procedure Law, R.S.54:48-1 et seq.
b. No taxpayer or taxing district shall be entitled to appeal either an assessment or an exemption or both that is based on a financial agreement subject to the provisions of the "Long Term Tax Exemption Law" under the appeals process set forth in subsection a. of this section.
(cf: P.L.2017, c.306, s.4)
9. Section 18 of P.l.1979, c.499 (C.54:3-21.3a) is amended to read as follows:
18. All revenues received by the county from fees, either established or increased pursuant to this amendatory and supplementary act, shall be used exclusively for the purposes of modernizing the record-retention capabilities of the county board of taxation, for defraying the costs incurred by the county board of taxation in recording and transcribing appeal proceedings, setting forth memorandums of judgment and in providing copies thereof, for paying any salary required to be paid by the county [which is increased pursuant to this amendatory and supplementary act, and to effectuate the provisions of the real property assessment demonstration program established by section 4 of P.L.2013, c.15 (C.54:1-104).] under the provisions of R.S.54:3-6 and R.S.54:3-8.
In addition to these purposes, a county operating under the "Real Property Assessment Demonstration Program," P.L.2013, c.15 (C.54:1-101 et seq.) or the "Property Tax Assessment Reform Act," P.L.2009, c.118 (C.54:1-86 et seq.) also shall be able to use these fee moneys for costs of software and hardware necessary for computer-assisted mass appraisal of real property, and paying for all costs related to the maintenance of tax maps.
(cf: P.L.2017, c.306, s.5)
10. Section 2 of P.L.1971, c.370 (C.54:4-3.3b) is amended to read as follows:
2. Where real property is acquired by the State or by a State agency, or by an authority created by the State, by purchase, condemnation or otherwise, such property shall become tax exempt on January 1 of the calendar year next following the date of acquisition, provided that the tax assessor of the municipality in which such property is located is given written notice of the acquisition by certified mail on or before [January 10] April 30 of [said] the calendar year next following; provided further that if real property is acquired between January 1 and [January 10] April 30 inclusive and the prescribed notice is given on or before [January 10] April 30, such real property shall become tax exempt as of the date of acquisition.
In order to properly capture the value of the improved parcel from January 1 to the date of acquisition, the assessor's final tax list shall include a land and improvement value that reflects the prorated value of the parcel as of January 1 for the number of days before acquisition.
(cf: P.L.1971, c.370, s.2)
11. R.S.54:4-23 is amended to read as follows:
54:4-23. All real property shall be annually assessed to the person owning the same on October 1 in each year. The assessor shall annually ascertain the names of the owners of all real property situate in his taxing district, and after examination and inquiry, determine the full and fair value of each parcel of real property situate in the taxing district at such price as, in his judgment, it would sell for at a fair and bona fide sale by private contract on October 1 next preceding the date on which the assessor shall complete his assessments, as hereinafter required; provided, however, that in determining the full and fair value of land which is being assessed and taxed under the [Farmland Assessment Act of 1964, chapter 48, laws of 1964] "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.), the assessor shall consider only those indicia of value which such land has for agricultural or horticultural use as provided by [said] that act[; and provided further however, that when the assessor has reason to believe that property comprising all or part of a taxing district has been assessed at a value lower or higher than is consistent with the purpose of securing uniform taxable valuation of property according to law for the purpose of taxation, or that the assessment of property comprising all or part of a taxing district is not in substantial compliance with the law and that the interests of the public will be promoted by a reassessment of such property, the assessor shall, after due investigation, make a reassessment of the property in the taxing district that is not in substantial compliance, provided that (1) the assessor has first notified, in writing, the mayor, the municipal governing body, the county board of taxation, and the county tax administrator of the basis of the assessor's determination that a reassessment of that property in the taxing district is warranted and (2) the assessor has submitted a copy of a compliance plan to the county board of taxation for approval. In the case of real property located in a county participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104), the assessor of the municipality in which the real property is situate, after due investigation, shall make a reassessment of the property in the taxing district that is not in substantial compliance]. Following [a] the reassessment of [a portion of] the taxing district [pursuant to the provisions of this section], the assessor shall certify to the county board of taxation, through such sampling as the county board of taxation deems adequate, that the reassessment is in substantial compliance [with the portions of the taxing district that were not reassessed]. For the purposes of assessment, the assessor shall compute and determine the taxable value of such real property at the level established for the county pursuant to law.
An assessor shall make three good-faith attempts to physically inspect the interior of at least 10 percent of the properties in a taxing district annually. The inspections may be performed in a 10-year ongoing assessment cycle. If, after the third attempt to inspect the interior of the premises, access to the interior of the premises has not been granted by the property owner, the assessor shall assess the property using other observations and sources, including information on the property record card maintained by the assessor.
Within 30 days of the conveyance of the title of real property as evidenced by the filing of a deed with the county clerk, the municipal assessor's office may inspect the interior of a property.
For the purpose of gathering accurate data regarding the status and condition of real property being assessed, the assessor or the assessor's representatives, or lawful agents or representatives of the assessor and the assessor's staff, shall be granted access to the exterior and interior of all property within the municipality and shall be exempt from any liability from trespassing and granted immunity from civil or criminal liability while they are acting within the scope of their official duties. The assessor shall maintain a list of any denied entries. The assessment of any improvement which has been denied internal inspection may be, at the assessor's discretion, estimated to be fully completed and of the highest possible quality as observed within the subject property's direct market area. An assessment appeal filed by a property owner shall not be heard by the county board of taxation or the Tax Court of New Jersey unless the municipality has been given access to internal inspection.
(cf: P.L.2013, c.15, s.11)
12. R.S.54:4-35 is amended to read as follows:
54:4-35. [a. Except as provided in subsection b. of this section, the] The assessor shall determine his taxable valuations of real property as of October 1 in each year and shall complete the preparation of [his assessment list by January 10 following, on which date he shall attend before the county board of taxation and file with the board his complete assessment list, and a true copy thereof, to be called the assessor's duplicate. Such list and duplicate shall include the assessments of personal property reported or determined pursuant to this chapter. They shall be properly made up in such manner and form required by the Director of the Division of Taxation pursuant to R.S.54:4-26, to be examined, revised and corrected by the board as provided by law.
b. In the case of a municipality located in a county where the county board of taxation is participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104) and in the case of a county operating under the "Property Tax Assessment Reform Act," P.L.2009, c.118 (C.54:1-86 et seq.), the assessor shall determine the taxable valuations of real property as of October 1 in each year and shall complete the preparation of] the preliminary assessment list by November 1, and the assessor shall appear on that date before the county board of taxation and shall file with the board a hard copy of the complete preliminary assessment list, or shall certify to the board, on forms promulgated by the Director of the Division of Taxation in the Department of the Treasury, that the electronic file within the county's MOD-IV tax system is his complete preliminary assessment list.
After all of the assessment appeals filed with the county tax board have been decided, the assessor shall complete the preparation of the final assessment list by May 5, on which date the assessor shall appear before the county board of taxation and shall file with the board his completed final assessment list, and a true copy of the final assessment list, which true copy shall be the assessor's duplicate. The final assessment and the assessor's duplicate shall include the assessments of personal property reported or determined pursuant to the requirements of chapter 4 of Title 54 of the Revised Statutes, in such manner and form as shall be required by the director pursuant to R.S.54:4-26, and shall be examined, revised and corrected by the board as provided by law.
(cf: P.L.2017, c.306, s.6)
13. Section 1 of P.L.1945, c.260 (C.54:4-35.1) is amended to read as follows:
1. [a.] When any parcel of real property contains any building or other structure which has been destroyed, consumed by fire, demolished, or altered in such a way that its value has materially depreciated, either intentionally or by the action of storm, fire, cyclone, tornado, or earthquake, or other casualty, which depreciation of value occurred after October 1 in any year and before [January] May 1 of the following year, the assessor shall, upon notice thereof being given to him by the property owner prior to [January 10] May 3 of that year, and after examination and inquiry, determine the value of [such] the parcel of real property as of that [January] May 1, and assess the same according to such value within the final tax list delivered to the county board of taxation on or before May 5 of that year.
[b. (1) In the case of a county participating in the demonstration program established by section 4 of P.L.2013, c.15 (C.54:1-104), when any parcel of real property contains any building or other structure which has been destroyed, consumed by fire, demolished, or altered in such a way that its value has materially depreciated, either intentionally or by the action of storm, fire, cyclone, tornado, or earthquake, or other casualty, which depreciation of value occurred after October 1 in any year and before May 1 of the following year, the assessor shall, upon notice thereof being given to him by the property owner prior to May 3 of that year, and after examination and inquiry, determine the value of the parcel of real property as of that May 1, and assess the same according to such value within the final tax list delivered to the county board of taxation on or before May 5 of that year.
(2)] To properly capture the value of the building or structure from January 1 to the date of the depreciation of the building or structure, the assessor's final tax list shall include an improvement value that reflects the prorated value of the building or structure as of January 1 for the number of days prior to the date of the depreciation of the building or structure.
(cf: P.L.2017, c.228, s.1).
14. R.S.54:4-49 is amended to read as follows:
54:4-49. (a) Except as to any State tax at a fixed rate provided for in sections 54:4-50 and 54:4-51 of this Title, each county board of taxation, after having received the tax lists and duplicates of the assessors and having revised and corrected the same and having equalized the aggregate valuations of all the real property in the respective taxing districts, as required by R.S.54:3-17 to 54:3-19, shall, after making adjustments for the debits and credits hereinafter mentioned, apportion the amount to be raised in the respective taxing districts for State, State school, county, free county library, free public library, and joint free public library purposes and for purposes of consolidated school districts and school districts comprising two or more taxing districts, on the basis of the total valuation so ascertained for each taxing district. The total valuation for each taxing district, so ascertained, shall be known as the "apportionment valuation."
(b) The amount to be apportioned among the respective taxing districts shall be the amount to be raised for the purposes specified in subsection (a), plus or minus the difference between the total debits and total credits of the taxing districts affected, determined as provided in subsection (c). The net amounts respectively to be raised, after making allowance to the affected districts for the debits and credits, shall be equivalent to the amount required for each of the purposes specified in subsection (a).
(c) The net debit or credit of each taxing district shall be the amount by which the taxing district has overpaid or underpaid its share of the specific tax or taxes for the purposes specified in subsection (a) for the preceding year or years because of increases or decreases in the amount of the assessments of the district subsequent to the apportionment in the preceding year or years by reason of final judgments on appeals, complaints and applications, the correction of clerical errors under R.S.54:4-53 and the allowance of additional veterans' exemptions or deductions during the prior tax year by the collector pursuant to law. When an assessment has been reduced or added to, or increased, on appeal, complaint or other application, and the judgment on that appeal, complaint or other application has been further appealed, no deduction or increase as herein provided for shall be made with respect to the appealed assessment until the further appeal has been finally determined.
(d) So that there shall be uniformity of application and treatment under this section in all of the counties, the Director, Division of Taxation, shall issue regulations for the guidance of the county boards of taxation in the determination of the apportionment valuations, the amounts to be apportioned and the amounts of the debits and credits.
(e) In the next succeeding tax year, the prior year's equalization shall be recalculated in accordance with the provisions of R.S.54:3-17 and using the most recent average ratio promulgated pursuant to the provisions of section 5 of P.L.1973, c. 123 (C.54:1-35b). The difference between the prior year's preliminary apportionment and the recalculated final apportionment shall be applied as a debit or credit as described in this section.
(cf: P.L.2011, c.38, s.4)
15. R.S.54:4-52 is amended to read as follows:
54:4-52. The county board of taxation shall, on or before May [20, or on or before May 31 in the case of a county board of taxation participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104) and a county board of taxation in a county operating under the "Property Tax Assessment Reform Act," P.L.2009, c.118 (C.54:1-86 et seq.)] 31, fill out a table of aggregates copied from the duplicates of the several assessors and the certifications of the Director of the Division of Taxation relating to second-class railroad property, and enumerating the following items:
(1) The total number of acres and lots assessed;
(2) The value of the land assessed;
(3) The value of the improvements thereon assessed;
(4) The total value of the land and improvements assessed, including:
a. Second-class railroad property;
b. All other real property.
(5) The value of the personal property assessed, stating in separate columns:
a. Value of household goods and chattels assessed;
b. Value of farm stock and machinery assessed;
c. Value of stocks in trade, materials used in manufacture and other personal property assessed under section 54:4-11;
d. Value of all other tangible personal property used in business assessed.
(6) Deductions allowed, stated in separate columns:
a. Household goods and other exemptions under the provisions of section 54:4-3.16 of this Title;
b. Property exempted under section 54:4-3.12 of this Title.
(7) The net valuation taxable;
(8) Amounts deducted under the provisions of sections 54:4-49 and 54:4-53 of this Title or any other similar law (adjustments resulting from prior appeals);
(9) Amounts added under any of the laws mentioned in subdivision 8 of this section (like adjustments);
(10) Amounts added for equalization under the provisions of sections 54:3-17 to 54:3-19 of this Title;
(11) Amounts deducted for equalization under the provisions of sections 54:3-17 to 54:3-19 of this Title;
(12) Net valuation on which county, State and State school taxes are apportioned;
(13) The number of polls assessed;
(14) The amount of dog taxes assessed;
(15) The property exempt from taxation under the following special classifications:
a. Public school property;
b. Other school property;
c. Public property;
d. Church and charitable property;
e. Cemeteries and graveyards;
f. Other exemptions not included in foregoing classifications subdivided showing exemptions of real property and exemptions of personal property;
g. The total amount of exempt property.
(16) State road tax;
(17) State school tax;
(18) County taxes apportioned, exclusive of bank stock taxes;
(19) Local taxes to be raised, exclusive of bank stock taxes, subdivided as follows:
a. District school tax;
b. Other local taxes.
(20) Total amount of miscellaneous revenues, including surplus revenue appropriated, for the support of the taxing district budget, which, for a municipality operating under the State fiscal year, shall be the amounts for the fiscal year ending June 30 of the year in which the table is prepared;
(21) District court taxes;
(22) Library tax;
(23) Bank stock taxes due taxing district;
(24) Tax rate for local taxing purposes to be known as general tax rate to apply per $100.00 of valuation, which general tax rate shall be rounded up to the nearest one-half penny after receipt in any year of a municipal resolution submitted to the county tax board on or before April 1 of that tax year requesting that the general tax rate be rounded up to the nearest one-half penny.
For municipalities operating under the State fiscal year, the amount for local municipal purposes shall be the amount as certified pursuant to section 16 of P.L.1994, c.72 (C.40A:4-12.1). The table shall also include a footnote showing the amount raised by taxation for municipal purposes as shown in the State fiscal year budget ending June 30 of the year the table is prepared.
In addition to the above such other matters may be added, or such changes in the foregoing items may be made, as may from time to time be directed by the Director of the Division of Taxation. The forms for filling out tables of aggregates shall be prescribed by the director and sent by him to the county treasurers of the several counties to be by them transmitted to the county board of taxation. Such table of aggregates shall be correctly added by columns and shall be signed by the members of the county board of taxation and shall within three days thereafter be transmitted to the county treasurer who shall file the same and forthwith cause it to be printed in its entirety and shall transmit certified copy of same to the Director of the Division of Taxation, the State Auditor, the Director of the Division of Local Government Services in the Department of Community Affairs, the clerk of the board of freeholders, and the clerk of each municipality in the county.
(cf: P.L.2017, c.306, s.9)
16. Section 2 of P.L.1965, c.123 (C.22A:4-4.1) is amended to read as follows:
2. County clerks and registers of deeds and mortgages, in counties having such offices, shall charge for the services herein enumerated the following fees:
Fee
For recording veteran's discharge papers No fee
For recording any instrument:
First page $30.00
Each additional page or part thereof $10.00
Each rider, insertion, addition, or any map,
plat or sketch filed or recorded pursuant
to subsection (c) of section 2 of P.L.1957,
c.130 (C.48:3-17.3) $10.00
For entering the marginal notation of an order,
judgment, statement or warrant discharging,
annulling a notice of lis pendens and for
filing such order, judgment or statement $10.00
For filing a lis pendens foreclosure $30.00
Notation $10.00
For preparing and transmitting to the assessor,
collector, or other custodian of the assessment
map of any taxing district, the abstract of an
instrument evidencing title to realty $10.00
For entering the marginal notation of a discharge
or release of a New Jersey building and loan
or savings and loan mortgage and forwarding
abstract $10.00
For entering the marginal notation of a discharge,
assignment, postponement or release of a
mortgage, other than building and loan and
savings and loan mortgages $10.00
For the cancellation of any mortgage $20.00
For a marginal notation of the discharge of a
mortgage in counties where mortgages are
indexed under a system requiring a duplication
of indices and description $10.00
For filing and recording notice of federal tax
lien or other federal lien or certificate
discharging such lien $25.00
For filing a notice of settlement $20.00
For filing each map, plat, plan or chart
(except when presented by the State or
its agencies or filed pursuant to subsection (c) of
section 2 of P.L.1957, c.130 (C.48:3-17.3)) $55.00
For recording tax sale certificate, except by
municipalities, or a redemption or assignment
of tax sale certificate, first page $30.00
Each additional page or part thereof $10.00
Certified copy of veteran's discharge No fee
For indexing any recorded instrument in excess
of 5 parties, per each name in excess of 5 $6.00
For recording tax sale certificate, lien, deed,
or related instrument by a municipality [$8.00] $58.00
For recording vacations or dedications of roads,
first page $30.00
Each additional page or part thereof $10.00
For disclaimers $15.00
For reimbursement agreements No fee
(cf: P.L.2007, c.144, s.1)
17. (New section) Of the fee for the recording of a deed, $45 shall be forwarded by the county treasurer to the chief financial officer of the municipality in which the property is located, to be used exclusively to cover costs pertaining to the required inspection of recently sold or conveyed property as required in subsection e. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill). The remaining $5 shall be returned to the county recording officer, to be used exclusively to modernize the mortgage filing process.
18. (New section) The Director of the Division of Taxation, pursuant to the "Administrative Procedure Act," P.L. P.L.1968, c.410 (C.52:14B-1 et seq.), shall promulgate rules and regulations to effectuate the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
19. The following sections of law are repealed:
Sections 1 through 4 of P.L.2015, c.13 (C.54:1-101 through C.54:1-104); and
Section 17 of P.L.2013, c.15.
20. This act shall take effect immediately.
STATEMENT
This bill, the "Technology-Based Real Property Assessment Transition Act," would revise the process of real property assessment into a process that includes the use of modern technology in every municipality, statutory revisions to the assessment calendar, a mandatory district-wide annual reassessment requirement to set real property assessments at true value, the internal inspection of recent property sales as evidenced by the filing of the deed with the county and the charging of an inspection fee to cover the cost thereof to be paid at the time the deed is filed, and a mandatory 10-year cycle of internal inspections of all real property in every municipality in the State. The provisions of the "Technology-Based Real Property Assessment Transition Act" would establish a program to be followed by every assessor in the State in order to more equitably distribute the property tax levy among all property taxpayers, provide a more accurate assessment of each parcel of real property in the State, ensure transparency in the real property assessment process, and reduce local costs related to the assessment of real property. Currently, many municipalities do not perform regular revaluations, or in-house reassessments of real property, which leads to properties being over-valued or under-valued, and in turn, property owners either over-paying or under-paying property taxes. The intent of the "Technology-Based Real Property Assessment Transition Act" is to ensure that property owners pay property taxes based on the true value of their properties, not on old or incorrect values, and to provide transparency to the public about the real property assessment process.
The real property assessment program proposed by the bill would require every county board of taxation to adopt an implementation schedule which reflects the actions required to be taken by each assessor in order to meet the requirements of the "Technology-Based Real Property Assessment Transition Act," over a ten-year period, including the transition to assessors performing annual reassessments of all real property in their respective jurisdictions. The implementation schedule shall be approved by the county board of taxation and submitted to the Director of the Division of Taxation. The county board of taxation is required to hold at least one public meeting to hear from the public and municipal officials regarding concerns associated with the proposed implementation schedule.
The implementation schedule would be a public document that provides a 10-year plan outlining the tax years in which the municipal assessor is to revise assessments to the current director's ratio, or to 100 percent if the director's ratio exceeds 100 percent, the tax year in which all assessments are to be set to 100 percent of true value, and the annual requirement of reassessment each year thereafter. The municipality may petition the county board of taxation to modify the adopted schedule during the course of the 10-year plan, but all municipalities are required to set assessments equal to true value no later than the 10th year of implementation.
Not later than April 1 next following the enactment of the bill, the county tax administrator of every county board of taxation is required to certify to the Director of the Division of Taxation in the Department of Treasury that the county board of taxation is either a State-certified vendor of MOD-IV technology, including computer assisted mass appraisal (CAMA) software, or that the county has contracted with a single State-certified MOD-IV vendor to provide MOD-IV technology, including CAMA software, to all of the municipalities in the county. The county tax administrator shall file with the director a copy of its MOD-IV/CAMA certification, or a copy of a valid contract with a State-certified MOD-IV vendor for MOD-IV/CAMA services. Each county tax board shall pay all of the costs associated with the conversion to the county-based MOD-IV/CAMA system and the associated expansion of the technology infrastructure required to support the centralized system. Each county tax board shall annually provide technical training and financial support for the advancement of the local assessment function through education and technology expansion. Under the bill, no direct appropriation of State funds would be used to effectuate the provisions of the "Technology-Based Real Property Assessment Transition Act." The technical costs of the law are to be paid by each county board of taxation using assessment appeal filing fees collected by the county board taxation pursuant to section 18 of P.L.1979, c.499 (C.54:3-21.3a).
Each county board of taxation is required to provide MOD-IV technology and CAMA software to each municipality that does not use the software, at no cost to those municipalities, and shall provide, at no cost to those municipalities, training in the use of the technology and the software to the assessors of those municipalities and to their respective staff members. Thereafter, each municipality shall pay an annual fee per each taxable line item in the municipality to the county board of taxation to cover the cost of the county providing the MOD-IV and CAMA service to the municipality. The amount of the annual fee shall be set by the county board of taxation. Annual MOD-IV/CAMA service fees paid by municipalities shall be used exclusively by county boards of taxation to defray costs associated with the administration and advancement of the "Technology-Based Real Property Assessment Transition Act" and its associated services and technologies.
On October 1 next following the enactment of the bill, every county shall operate under the countywide implementation schedule developed by the county tax administrator or county assessor, utilizing the same property assessment software as is used by the county tax board, and provided to the municipalities by the county tax board pursuant to the bill. Every real property assessment function required to be performed by an assessor by law, or by rule or regulation adopted pursuant to law, shall be performed using the MOD-IV technology and the CAMA software provided by the county board of taxation to the assessor.
Under the bill, every county board of taxation shall publicly adopt a transition schedule for each municipality within the county. The transition schedule shall not exceed 10 years. Beginning in the first year of the transition and every year thereafter, every assessor shall attempt to internally inspect no less than 10 percent of the districts line items so that the inspection of 100 percent of all line items are attempted every 10 years. The municipality may accelerate the initial internal inspection rate, including performing 100 percent of the inspections in the first year.
Also, beginning in the first year of transition and in every year thereafter, the assessor shall internally inspect every new property sale that is believed to reflect current market value, the cost of which shall be covered by the municipality's share of an increased fee for the recording of a deed for the conveyance or transfer of real property.
Beginning in the first year of transition up until the submission of the first preliminary tax list which reflects assessments set equal to 100 percent of true value, the assessor shall annually review and revise each assessment to the current director's ratio. Every year following the implementation of 100 percent of true value, the assessor shall review and revise every assessment to 100 percent of current true value.
The bill would also revise various statutes in order to require assessors and county boards of taxation to utilize technology in assessment-related processes and effectuate the provisions of the bill.
The bill would also require every municipality and county in the State to operate, on a permanent basis, under the alternative real property assessment dates established for municipalities participating in the "Real Property Assessment Demonstration Program," P.L.2013, c.15 (C.54:1-101 et al.). The alternative real property assessment calendar implemented as part of the "Real Property Assessment Demonstration Program" is designed to specifically address the systemic costs which result from losses due to successful assessment appeals by property owners, which reduce the property tax base, and which require municipalities to refund large amounts of property taxes previously collected from those property owners.
Under current law, every assessor files the tax list with the county board of taxation, which subsequently sets the local tax rates. Assessment appeals are filed by property owners on April 1 of each year, or on May 1 in the case of a municipality that has undergone a municipal-wide revaluation or reassessment of real property. Appeals are heard by the county tax board and generally decided by the end of July. Successful appeals that late in the tax year result in reduced assessments, which reduces the municipal tax base. Because the county tax board has already apportioned the tax levy, a decrease in the tax base will result in the under-collection of property taxes to fund current year operations. The real property assessment calendar enacted as part of the "Real Property Assessment Demonstration Program" re-schedules the property assessment appeal process to dates prior to the calculation of the local property tax rate, which allows for a more accurate local property tax rate to reflect local budgetary needs and the true value of the tax base that provides the property tax revenue to fund the local budget.
The chart below sets forth the
current statutory dates relative to the individual functions that comprise the
real property assessment process, and the dates for those functions under the
"Real Property Assessment Demonstration Program."
|
DATES RELATIVE TO CERTIFICATION OF THE TAX LIST, ASSESSMENT APPEALS, AND THE CALCULATION OF LOCAL TAX RATES IN MUNICIPALITIES THAT ADOPT THE REAL PROPERTY ASSESSMENT CALENDAR UNDER THE "REAL PROPERTY ASSESSMENT DEMONSTRATION PROGRAM" |
||
|
Description of Function |
Current Date |
Proposed Date |
|
Assessing Date |
October 1 of pre-tax year |
October 1 of pre-tax year |
|
Certification of Preliminary Assessment |
N/A |
November 1 of pre-tax year |
|
Notification of Assessment Postcards |
February 1 |
November 15 of pre-tax year |
|
Assessment Appeal Filing Deadline |
April 1; May 1 in municipalities wherein revaluation of real property has occurred |
January 15 |
|
Assessment Appeals Heard |
May, June and July |
February, March and April |
|
Tax List Filed |
January 10 |
May 5 |
|
County Preliminary Equalization |
March 10 |
May 15 |
|
County Final Equalization |
March 10 |
May 25 |
|
Municipal Budget to Tax Board |
March 31 |
May 15 |
|
County Budget to Tax Board |
April 1 |
May 15 |
|
School Budget to Tax Board |
May 19 |
May 15 |
|
Certified Tax Rates |
May 20 |
May 31 |
|
Tax Duplicates |
June 3 |
June 3 |
|
Tax Bills |
June 14 |
June 14 |
