To appeal a property tax assessment in New Jersey, a property owner must file a written appeal no later than April 1, 2103, or May 1, 2103 if the town completed a reevaluation or reassessment. When landlords who lease on a triple-net basis receive their 2013 tax assessment card, do they need to worry about the tax assessment since their tenants are paying the taxes? The answer is yes, for several reasons.
If a tenant vacates, the landlord must make certain the resulting empty space is offered to prospective tenants at a competitive rate. If the taxes that are being passed through are higher than competing properties, the landlord may be at a competitive disadvantage.
The same holds true for lease extensions and renewals. Tenants often hire consultants who can compare the cost of comparable space, and landlords do not want to lose tenants because the taxes are too high.
Finally, if a tenant is provided with some cash flow relief by way of lower property taxes, the tenant may survive this economic downturn. Sometimes even a minimal savings goes a long way.
These are just some of the reasons why landlords with triple net leases should consider filing tax appeals now.
Stark & Stark represents owners of shopping centers, office complexes and all types of commercial and industrial properties. If you would like assistance in evaluating the merits of a tax appeal, please contact Timothy P. Duggan, Esquire at 609.895.7353 or Jerry Nelson, Esquire at 609.945.7635.