Bill Text: NJ A4123 | 2012-2013 | Regular Session | Introduced

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Bill Title: Requires municipal tax assessors to use disaster relief special tax codes to reduce assessments for parcels of real property destroyed or damaged due to disaster event.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced - Dead) 2013-05-13 - Introduced, Referred to Assembly Housing and Local Government Committee [A4123 Detail]

Download: New_Jersey-2012-A4123-Introduced.html

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ASSEMBLY, No. 4123

STATE OF NEW JERSEY

215th LEGISLATURE

 

INTRODUCED MAY 13, 2013

 

 

Sponsored by:

Assemblyman  TROY SINGLETON

District 7 (Burlington)

Assemblywoman  CAROLINE CASAGRANDE

District 11 (Monmouth)

 

 

 

 

SYNOPSIS

     Requires municipal tax assessors to use disaster relief special tax codes to reduce assessments for parcels of real property destroyed or damaged due to disaster event.

 

CURRENT VERSION OF TEXT

     As introduced.

  

An Act concerning the valuation of real property following a disaster, amending R.S.54:3-22, P.L.1960, c.51 and P.L.1991, c.75, and supplementing Title 54 of the Revised Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    R.S.54:3-22 is amended to read as follows:

     54:3-22.   a.   The board shall thereupon make such order respecting the time and manner for hearing the appeal as it may deem just, and shall summarily hear and determine the appeal, and revise and correct the assessment in accordance with the value prescribed by [law] R.S.54:4-35; provided, however, that in the case of a property eligible for treatment as materially depreciated pursuant to section 1 of P.L.1945, c.260 (C.54:4-35.1) or for a disaster relief special tax assessment reduction pursuant to section 3 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill), the date of assessment shall be deemed to be December 31 of the pretax year.  All appeals filed pursuant to the provisions of chapter 3 of Title 54 of the Revised Statutes shall be heard and determined by the board.  It may compel the attendance of witnesses, the production of books and papers before it, examine witnesses or cause witnesses to be examined under oath before it, which oath may be administered by a member of the board.

     b.    In any proceedings before the board where deeds or other instruments of  conveyance do not state the true consideration or sale price of the property, which is the subject of appeal, the realty transfer fee paid upon the recording of such deeds or instruments as well as an affidavit of consideration attached to and filed with any such deed or instrument shall be admitted as prima facie evidence of the actual amount of money and the monetary value of any other thing of value constituting the entire compensation paid for such transfer of realty.

     c.     Whenever the county board of taxation is satisfied by the proofs that the ratio of the assessed valuation of the subject property to its true value exceeds the upper limit or falls below the lower limit of the common level range, it shall revise the taxable value of the property by applying the average ratio to the true value of the property except as hereinafter provided.

     d.    If the average ratio is below the county percentage level and the ratio of the assessed value of the subject property to its true value exceeds the county percentage level, the county board of taxation shall reduce the taxable value of the property by applying the average ratio to the true value of the property.

     e.     If both the average ratio and the ratio of the assessed value of the subject property to its true value exceed the county percentage level, the county board of taxation shall revise the taxable value of the property by applying the county percentage level to the true value of the property.

     f.     The provisions of this section shall not apply to any appeal from an assessment of real property taken with respect to the tax year in which the taxing district shall have completed and put into operation a district-wide revaluation program approved by the Director of Taxation pursuant to chapter 424, laws of 1971 (C. 54:1-35.35 et seq.).

(cf: P.L.1973, c.123, s.3)

 

     2     Section 1 of P.L.1960, c.51 (C.54:4-2.25) is amended to read as follows:

     1.    All real property subject to assessment and taxation for local use shall be assessed according to the same standard of value, which shall be the true value of such real property and the assessment shall be expressed in terms of the taxable value of such property, which taxable value shall be that percentage of true value as shall be established by each county board of taxation as the level of taxable value to be applied uniformly throughout the county.

     When real property has been damaged by a disaster event, as defined under section 3 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill), that occurs on or prior to October first of the pretax year, the assessor shall use the disaster relief special tax code reduction guidelines promulgated pursuant to subsection c. of section 3 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill) to value the property.

(cf: P.L.1960, c.51, s.1)

 

     3.    (New section)  a.  The Director of the Division of Taxation in the Department of the Treasury, in consultation with the Commissioner of Community Affairs, may declare a natural or non-natural disaster occurring during the period set forth in section 1 of P.L.1945, c.260 (C.54:4-35.1), or occurring on or prior to October first in any year to be a disaster event.  A parcel of real property that is destroyed or damaged as a result of a declared disaster event shall be granted a disaster relief special tax assessment reduction.

     b.    When a disaster event has been declared, and a disaster relief special tax assessment reduction has been granted pursuant to subsection a. of this section, the municipal assessor shall use the disaster relief special tax code reduction guidelines promulgated pursuant to subsection c. of this section to reduce the assessment of damaged or destroyed parcels for which the property owner has provided notice, pursuant to section 1 of P.L.1945, c.260 (C54:4-35.1), or for which the assessor has constructive notice of damage or destruction, whether through personal observation, reports from governmental officials, video or photographic images, or reasonable inferences made from observations of surrounding parcels.

     c.     The municipal assessor shall use the disaster relief special tax code assessment reduction guidelines in the following table to reduce the assessment of damaged or destroyed parcels:

 

Special Tax Code	Description	Assessment Reduction
H71	Minimal Basement Flooding	5% reduction to Improvement Assessment
H72	Moderate Basement Flooding	10% reduction to Improvement Assessment
H73	Moderate 1st Floor Flooding	15% reduction to Improvement Assessment
H74	Significant 1st Floor Flooding	30% reduction to Improvement Assessment
H81	Minimal Structural Damage	5% reduction to Improvement Assessment
H82	Moderate Structural Damage	20% reduction to Improvement Assessment
H83	Significant Structural Damage	60% reduction to Improvement Assessment
H84	Extreme Structural Damage	90% reduction to Improvement Assessment
H85	Total Structural Damage	100% reduction to Improvement Assessment
H86	Accessory Damage Only	Manual reduction required in CAMA
H91	External Obsolescence	10% reduction to Land Assessment
H92	External Obsolescence	25% reduction to Land Assessment
H93	External Obsolescence	50% reduction to Land Assessment

 

     d.    The Director of the Division of Taxation in the Department of the Treasury may add or modify the codes in the table set forth in subsection c. of this section, and modify the assessment reductions in that table by regulation, whenever deemed necessary and appropriate.

 

     4.    Section 32 of P.L.1991, c.75 (C.54:4-38.1) is amended to read as follows:

     32.  a.   Except as provided in subsection b. of this section, every assessor, prior to February 1, shall notify by mail each taxpayer of the current assessment and preceding year's taxes.  Thereafter, the assessor or county board of taxation shall notify each taxpayer by mail within 30 days of any change to the assessment.  This notification of change of assessment shall contain the prior assessment and the current assessment.  The director shall establish the form of notice of assessment and change of assessment.  Any notice issued by the assessor or county board of taxation shall contain information instructing taxpayers on how to appeal their assessment.  Whenever the assessor has reduced the valuation of an assessment due to a disaster event pursuant to section 3 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill), the date of notification shall be extended to February 15, and the disaster relief special tax code assessment reduction guidelines promulgated pursuant to subsection c. of section 3 of P.L.    c.   (C.       ) (pending before the Legislature as this bill), as appropriate, shall appear on the notice.

     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), every assessor, on or before November 15 of the pretax year, shall notify by mail each taxpayer of the preliminary assessment and preceding year's taxes.  Thereafter, the assessor or county board of taxation shall notify each taxpayer by mail within 30 days of any change to the assessment.  This notification of change of assessment shall contain the prior assessment and the current assessment.  The director shall establish the form of notice of assessment and change of assessment.  Any notice issued by the assessor or county board of taxation shall contain information instructing taxpayers on how to appeal their assessment.

     c.     The county board of taxation of the demonstration county shall make the preliminary data electronically accessible to the public by posting the data in searchable form on the county's website not later than 15 business days after the submission of the preliminary data.

(cf:  P.L.2013, c.15, s.15)

 

5.      This act shall take effect immediately.

 

 

STATEMENT

 

     This bill codifies the disaster relief special tax code assessment reduction guidelines, promulgated in November 2012 by the Director of the Division of Taxation in the Department of Treasury, for tax assessors.  The disaster relief special tax code assessment reduction guidelines were originally created in response to the loss of significant real property in this State due to damage caused by Superstorm Sandy on October 29, 2012.

     Under the provisions of the bill, the director, in consultation with the Commissioner of Community Affairs, may declare a natural or non-natural disaster to be a disaster event.  A parcel of real property that is destroyed or damaged as a result of a disaster event shall be granted a disaster relief special tax assessment reduction.  If disaster relief is granted, the municipal assessor shall use the disaster relief special tax assessment reduction code guidelines set forth in section 3 of the bill to reduce the assessment for a parcel for which the property owner has provided notice, or for which the assessor has constructive notice, of damage or destruction, whether through personal observation, reports from governmental officials, video or photographic images, or reasonable inferences made from observations of surrounding parcels.  Further, under the provisions of section 4 of the bill, whenever the assessor has reduced the valuation of an assessment due to a disaster event occurring after October 1^st of any year and before January 1^st of the following year, the date of taxpayer notification by the assessor is extended from February 1^st to February 15^th.