Bill Text: NJ S1670 | 2024-2025 | Regular Session | Introduced
Bill Title: Limits increase of assessed value of property subject to appeal judgment following implementation of reassessment.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-01-09 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S1670 Detail]
Download: New_Jersey-2024-S1670-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator DECLAN J. O'SCANLON, JR.
District 13 (Monmouth)
SYNOPSIS
Limits increase of assessed value of property subject to appeal judgment following implementation of reassessment.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the termination of judgments on property tax assessment appeals, amending R.S.54:3-26 and R.S.54:51A-8.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.54:3-26 is amended to read as follows:
54:3-26. a. The county board of taxation shall hear and determine all such appeals within three months after the last day for filing such appeals, and shall keep a record of its judgments thereon in permanent form, and shall transmit a written memorandum of its judgments to the assessor of the taxing district and to the taxpayer, setting forth the reasons on which such judgment was based, and in all cases where the amount of tax to be paid shall be changed as the result of an appeal, to the collector of the taxing district. The Director of the Division of Taxation shall prescribe such procedures and forms for the setting forth of such written memorandums of judgments as may be necessary.
Whenever any review is sought of the determination of the county board of taxation, the complaint shall contain a copy of the memorandum of judgment of the county board.
b. Where no request for review is taken to the Tax Court to review the action or determination of the county board involving real property the judgment of the county board shall be conclusive and binding upon the municipal assessor and the taxing district for the assessment year, and for the two assessment years succeeding the assessment year, covered by the judgment, except as to changes in value of the property occurring after the assessment date. The conclusive and binding effect of such judgment shall terminate with the tax year immediately preceding the year in which a program for a complete revaluation or complete reassessment of all real property within the district has been put into effect or when the assessor implements either a reassessment or other form of district-wide assessment review that requires the revision of all property assessments to current market value, which assessment is approved by the county board of taxation and the Director of the Division of Taxation in the Department of the Treasury. If as of October 1 of the pretax year, the property in question has been the subject of an addition qualifying as an added assessment, a condominium or cooperative conversion, a subdivision or a zoning change, the conclusive and binding effect of such judgment shall terminate with said pretax year.
c. If the assessor increases the assessment or fails to reflect on the tax duplicate a county board of taxation or Tax Court judgment issued prior to the final preparation of the tax duplicate in either of the two years following the year for which the judgment of the county board was rendered, and if said judgment is a final judgment not further appealed, the burden of proof shall be on the taxing district to establish that the assessor acted reasonably in increasing the assessment. If the county board finds that the assessor did not act reasonably in increasing the assessment or failed to reflect said judgment on the tax duplicate, the county board shall award to the taxpayer reasonable counsel fees, appraisal costs and other costs which shall be paid by the taxing district.
d. (1) In a taxing district which has implemented a district-wide reassessment program or other form of district-wide assessment review that requires the revision of all property assessments to current market value, which assessment is approved by the county board of taxation and the Director of the Division of Taxation in the Department of the Treasury pursuant to R.S.54:4-23, the assessor's increase of an appeal judgment shall be limited to the percentage increase of the net valuation taxable of the district. The maximum percentage increase shall be calculated by utilizing the net valuation taxable of the district from the prior year's abstract of ratables and the total net valuation taxable from the district's current year's preliminary tax list or tax list, as appropriate. If as of October 1 of the pretax year, the property in question has been the subject of an addition qualifying as an added assessment, a condominium or cooperative conversion, a subdivision or a zoning change, the conclusive and binding effect of such judgment shall terminate with said pretax year.
(2) If the assessor increases the assessment of an appeal judgment in excess of the permitted percentage allowed pursuant to paragraph (1) of this subsection, the burden of proof shall be on the taxing district to establish that the assessor acted reasonably in increasing the assessment. If the county board finds that the assessor did not act reasonably in increasing the assessment or failed to reflect said judgment on the tax duplicate, the county board shall award to the taxpayer reasonable counsel fees, appraisal costs and other costs which shall be paid by the taxing district.
(cf: P.L.1999, c.208, s.3)
2. R.S.54:51A-8 is amended to read as follows:
54:51A-8. a. Conclusiveness of judgment; changes in value; effect of revaluation program. Where a judgment not subject to further appeal has been rendered by the Tax Court involving real property, the judgment shall be conclusive and binding upon the municipal assessor and the taxing district, parties to the proceeding, for the assessment year and for the two assessment years succeeding the assessment year covered by the final judgment, except as to changes in the value of the property occurring after the assessment date. The conclusive and binding effect of the judgment shall terminate with the tax year immediately preceding the year in which a program for a complete revaluation or complete reassessment of all real property within the district has been put into effect or when the assessor implements either a reassessment or other form of district-wide assessment review that requires the revision of all property assessments to current market value, that is approved by the county board of taxation and the Director of the Division of Taxation in the Department of the Treasury. If as of October 1 of the pretax year, the property in question has been the subject of an addition qualifying as an added assessment, a condominium or cooperative conversion, a subdivision or a zoning change, the conclusive and binding effect of such judgment shall terminate with said pretax year.
b. If the assessor increases the assessment or fails to reflect on the tax duplicate a county board of taxation or Tax Court judgment issued prior to the final preparation of the tax duplicate in either of the two years following the year for which the judgment of the Tax Court was rendered and if said judgment is a final judgment not subject to further appeal, the burden of proof is on the taxing district to establish that the assessor acted reasonably in increasing the assessment. If the Tax Court finds that the assessor did not act reasonably in increasing the assessment or failed to reflect said judgment on the tax duplicate, the Tax Court shall award to the taxpayer reasonable counsel fees, appraisal costs and other costs which shall be paid by the taxing district.
c. In the event that a taxpayer is successful in an appeal from an assessment on nonresidential real property, the respective taxing district shall refund any excess taxes paid, less any amount of taxes, interest, and penalties, which may be applied against delinquencies pursuant to section 2 of P.L.1983, c.137 (C.54:4-134), in substantially equal payment periods and substantially equal payment amounts within three years of the date of final judgment.
In the event that a taxpayer is successful in an appeal from an assessment on residential real property, the respective taxing district shall refund any excess taxes paid, less any amount of taxes, interest, and penalties, which may be applied against delinquencies pursuant to section 2 of P.L.1983, c.137 (C.54:4-134) within 60 days of the date of final judgment.
d. (1) In a taxing district which has implemented a district-wide reassessment program or other form of district-wide assessment review that requires the revision of all property assessments to current market value, that is approved by the county board of taxation and the Director of the Division of Taxation in the Department of the Treasury pursuant to R.S.54:4-23, the assessor's increase of an appeal judgment shall be limited to the percentage increase of the net valuation taxable of the district. The maximum percentage increase shall be calculated by utilizing the net valuation taxable of the district from the prior year's abstract of ratables and the net valuation taxable from the district's current year's preliminary tax list or tax list, as appropriate. If as of October 1 of the pretax year, the property in question has been the subject of an addition qualifying as an added assessment, a condominium or cooperative conversion, a subdivision or a zoning change, the conclusive and binding effect of such judgment shall terminate with said pretax year.
(2) If the assessor increases the assessment of an appeal judgment in excess of the permitted percentage allowed pursuant to paragraph (1) of this subsection, the burden of proof shall be on the taxing district to establish that the assessor acted reasonably in increasing the assessment. If the county board finds that the assessor did not act reasonably in increasing the assessment or failed to reflect said judgment on the tax duplicate, the county board shall award to the taxpayer reasonable counsel fees, appraisal costs and other costs which shall be paid by the taxing district.
(cf: P.L.2019, c.230, s.2)
3. This act shall take effect immediately.
STATEMENT
This bill modifies existing law regarding the "freeze" of property tax assessment appeal judgments within taxing districts performing a review and revision of all property to current market value.
Under current law appeal judgments on property tax assessments terminate with the tax year immediately preceding the year in which a program for a complete revaluation or complete reassessment of all real property within the district has been put into effect. This bill also allows a termination of property tax assessment appeal judgments in districts performing a review and revision of all property to current market value, but limits the tax increase to the year over year increase in the district's net taxable value of property. The net valuation taxable is the total value of all taxable property in a taxing district. The limiting effect is to honor the property tax proportionate share established by the appeal judgment and ensure fair levy distribution in the subsequent year through the capture of common appreciation of property value.
