Real Estate Tax Appeals

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As a result of the COVID-19 coronavirus public health crisis, on March 19, 2020, the New Jersey Supreme Court issued an order extending the filing deadline for local property tax appeals from April 1st to at least May 1st.

Pursuant to the terms of the order, the filing deadline was extended to May 1, 2020 or 30 days following a determination by the governor that the State of Emergency declared under Executive Order No. 103 has ended.…

Continue Reading New Jersey Property Tax Appeal Filing Deadline Extended to May 1st

Ewing Township’s revaluation has been a long time coming and appears to be done. Property owners in Ewing Township will be receiving their new real estate tax assessment notices in the next few weeks and will have a small window to meet with the revaluation company to discuss the new tax assessment or file a tax appeal.
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Continue Reading Ewing Township NJ Revaluation – Commercial, Retail, and Industrial Owners Beware

Each year select municipalities appraise all properties within their borders in order to have all tax assessments reflect the current full and fair value of each property within the taxing district. The process, known as a revaluation, is alarming to property owners since they do not know whether their taxes will increase, decrease, or stay the same.

In 2017, revaluations were completed in Trenton, New Brunswick, Milburn, and many other municipalities in New Jersey. This article will address frequently asked questions that we have received over the years.…

Continue Reading FAQs on Real Estate Revaluations

Trenton’s revaluation has been a long time coming. Originally slated for 2016, it’s official for 2017. Property owners are now receiving notices of the new assessments proposed by the revaluation company hired by Trenton and the Trenton’s assessor. If the new assessment is not scrutinized, the Taxpayer, whether the property owner or triple net tenant, will be stuck with the new assessment.

Trenton is a City in transition. Properties range from abandoned buildings and vacant lots to thriving offices, residential, retail, industrial, and other uses. Because of the vast range in the condition of properties in Trenton and their utility, sales and other data establish values that range all over the place. Simply put, the real estate market has not established a well-defined and clear guide to a property’s market value so the potential exists for a wide range of opinions as to the value of a particular property.…

Continue Reading Property Revaluations in Trenton – Now, the Rubber Meets the Road

In the fall and early winter, as we approach the final days of the calendar year, the farthest thing from the mind of New Jersey taxpayers is their property tax bill. Months ago, the new tax bills were mailed and then filed away to be pulled out when quarterly payments are due. However, an astute taxpayer should make a note on the calendar for the last quarter of the year to look at the total assessment that appears on the tax bill and consider whether it reflects a fair or true value for the property. Acting proactively at this time of year can potentially shave significant dollars from a property owner’s tax bill, depending on the size of the assessment and the tax burden imposed by the municipality. Here’s why.
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Continue Reading Your Current Commercial Property’s Assessment and Tax Bill: The Best Defense Is A Good Offense – Take Action Now!

What Landlords and Tenants Should Do Before and After the December 1st Appeal Deadline

If the commercial property you own or rent has had recent construction and the Certificate of Occupancy (CO) was issued, it is likely the municipal assessor tacked on an added assessment to its regular assessment. It is also possible you may have received a tax bill for an omitted assessment, which has a similar deadline of December 1st.

While you may be already reeling from paying the non-residential development fee at the time of CO, as a taxpaying landlord or tenant, you should not shrug off the additional tax burden without giving thought to whether a formal or informal appeal of the added or omitted assessment should be made. As the December 1st deadline is rapidly approaching, now is a very apt time to consider whether the property is over-assessed and if you are paying too much in taxes.…

Continue Reading Should You Appeal Your Added Assessment Tax Bill?

Under New Jersey law, an “aggrieved taxpayer” has the right to file a real estate tax appeal in protest of a tax assessment. Tenants are eligible for this right in certain circumstances. As a general rule, a tenant under a triple net lease, one that requires the tenant to reimburse the landlord for real estate taxes, is an aggrieved taxpayer with the right to appeal.

Some leases prohibit smaller tenants from filing a tax appeal under contract law, but many leases are silent on whether a tenant must hold a threshold limit of leasable space in order to qualify. In such circumstances, the New Jersey Tax Court will generally utilize an “economic reality test” to determine not only if and when the tenant can file a tax appeal, but also who has the right to control and settle it.…

Continue Reading Commercial Tenants’ Rights to File and Control Tax Appeals: Size Matters

In a recent New Jersey Tax Court decision, ACP Partnership v. Garwood Borough, the court ruled that it will permit consideration of a property’s environmental contamination in deciding its true market value even though the property possesses a “value in use” to the tax payer. The case is significant because it rebuts the notion that a commercial property “in use” by the tax payer may only be assessed using “normal assessment techniques,” with no consideration given to environmental contamination in establishing its true market value. The subject property in ACP Partnership is a multi-tenanted and multi-structured industrial and warehouse complex containing approximately 230,000 square feet of improvements. The tax payer leases the property to tenants for warehouse and industrial uses. The tax payer also occupies a small portion of the property for self-storage. …
Continue Reading Court May Consider Environmental Contamination of Property in Assessing True Market Value Even When Property Generates Income and is Used by Tax Payer

Hamilton Township (Mercer County) is completing the revaluation of all properties in the Township and expects to advise property owners of their new assessments in January 2016. By now, each property owner should have been contacted by Professional Property Appraisals, which is the revaluation company hired by Hamilton Township to perform the revaluation. Once each…

This past week, Timothy P. Duggan, Chair of Stark & Stark’s Bankruptcy & Creditors’ Rights, Tax Appeals, and Eminent Domain Groups, held two presentations for the Mercer County Bar Association and the New Jersey State Bar Association.

Mr. Duggan’s first presentation was collaborated with fellow Shareholder Jeffrey M. Hall, member of the Eminent…