07/27/2022
Reverse tax appeals are happening in New Jersey and with increasing frequency.
Here are some FAQs about this disturbing trend of New Jersey municipalities starting to appeal the property tax assessments of real estate in their district.
1. Can my town appeal my property’s tax assessment?
Yes. In New Jersey, municipalities are legally allowed to challenge the tax assessment or of any real estate in the taxing district or the county in which it’s located, just like a property owner challenging their owner assessment.
2. Doesn’t the town’s tax assessor already set the assessments? Why would a town appeal a tax assessment?
While tax assessors set the assessments, the town technically doesn’t control the tax assessor. The assessor is hired and paid by the town but acts as an agent of the state. In theory, this allows the assessor to be neutral when he or she sets your tax assessment, and an appeal is the only way for the town to have a say in the assessment.
3. What happens if the town successfully appeals my tax assessment?
If the town wins the appeal, your assessment for the appealed tax year will increase, and you will be required to pay additional property taxes for that year. Usually, these additional taxes would be paid within sixty days of the date of the final judgment.
4. Will my taxes increase permanently?
A tax appeal only addresses one year, and certain laws "freezing" an assessment from an appeal judgment can only be used by the property owner. Because of this, a permanent increase is not automatic. However, it is within the tax assessor’s independent authority to increase the assessment going forward, but there is no legal obligation upon the assessor to make that change.
