Bill Text: NJ A4912 | 2018-2019 | Regular Session | Introduced

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Bill Title: Revises procedure for determining real property tax appeal outcomes.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-01-17 - Introduced, Referred to Assembly State and Local Government Committee [A4912 Detail]

Download: New_Jersey-2018-A4912-Introduced.html

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ASSEMBLY, No. 4912

STATE OF NEW JERSEY

218th LEGISLATURE

INTRODUCED JANUARY 17, 2019

 

 

Sponsored by:

Assemblyman  ROBERT AUTH

District 39 (Bergen and Passaic)

 

 

 

 

SYNOPSIS

     Revises procedure for determining real property tax appeal outcomes.

 

CURRENT VERSION OF TEXT

     As introduced.

 

An Act concerning tax appeals and amending P.L.1973, c.123.

 

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

 

     1.    Section 1 of P.L.1973, c.123 (C.54:1-35a) is amended to read as follows:

     1.    a.  The  "average ratio"  of assessed to true value of real property for a taxing district for the purposes of this act shall mean that ratio promulgated by the Director of the Division of Taxation pursuant to P.L.1954, c. 86 (C. 54:1-35.1 et seq.), as of October 1 of the year preceding the tax year, as revised by the tax court.

     b.    The  "common level range"  for a taxing district is that range which is  plus or minus 15% of the average ratio for that district; provided, however, that the Director of the Division of Taxation shall adjust the range to plus or minus 5% of the average ratio for the district following certification of technical feasibility by the director pursuant to subsection c. of this section.

     c.     On or before the first day of the sixth month next following enactment of P.L.    , c.    (pending before the Legislature as this bill), the Director of the Division of Taxation in the Department of Treasury shall certify the technical feasibility of adjusting the common level range from 15% of a taxing district's average ratio to 5%.  If the director determines that this adjustment is technically feasible, then the director shall apply the adjusted range beginning with the next common level range determination, conducted pursuant to section 5 of P.L.1973, c.123 (C.54:1-35b).  If the director determines that the adjustment is not technically feasible, then he shall revisit the technical feasibility issue on an annual basis.

(cf: P.L.1983, c.36, s.10)

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill enhances the ability of property owners to succeed in tax appeal actions by revising the method for determining the "common level range," an important figure in resolving those actions. 

     The bill requires the Director of the Division of Taxation in the Department of Treasury to certify the technical feasibility of adjusting the common level range for a taxing district from 15% to 5% of the average ratio of assessed to true value of real property.  If the director determines that this adjustment is technically feasible, then the bill requires the director to apply the adjusted range beginning with the next common level range determination, also conducted by the director, pursuant to section 5 of P.L.1973, c.123 (C.54:1-35b).  This adjustment would influence the results of tax appeal determinations, as resolved by county boards of taxation pursuant to subsection c. of R.S.54:3-22, making those appeals more likely to result in revisions to the taxable value of real property.  If the director determines that the adjustment is not technically feasible, then the bill requires him to revisit the technical feasibility issue on an annual basis.