Sponsored by:
Senator JAMES W. HOLZAPFEL
District 10 (Ocean)
SYNOPSIS
Requires Director of Division of Taxation to include sales of properties in age-restricted developments by third parties in table of equalized valuations.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the promulgation of a table of equalized valuations and amending P.L.1954, c.86.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1954, c.86 (C.54:1-35.3) is amended to read as follows:
3. True value for the purposes of this act shall be deemed to be valuation at current market prices or values, determined in such manner as the director may, in his discretion, select. The director shall determine the ratio of aggregate assessed to aggregate true valuation of real estate of each taxing district. He may make such determination by reference to the county equalization table whenever he is satisfied that the table has been prepared according to accepted methods and practices and that it properly reflects true value or a known percentage thereof for the several taxing districts in the county. The director, with respect to any and all taxing districts, may use the assessment ratios reported in the Sixth Report of the Commission on State Tax Policy (Trenton, 1953) and may consider such other assessment ratio studies as may be available. He may make such further and different investigations of assessment practices as he may deem necessary or desirable for the establishment of the assessment ratios required by this act. In determining usable sales for the purposes of promulgating a table of equalized valuations, the director shall include sales of properties in age-restricted developments by third parties such as guardians, trustees, executors, and administrators.
(cf: P.L.1954, c.86, s.3)
2. This act shall take effect immediately.
STATEMENT
This bill would require the Director of the Division of Taxation to include sales of properties in age-restricted developments by third parties such as guardians, trustees, executors, and administrators in the promulgation of a table of equalized valuations, for the purposes of establishing local tax assessments. Currently, such sales are not considered usable, because they are not “arms-length transfers” and therefore not considered to be true market-transaction indicators of fair market value. However, because the majority of sales of properties in age-restricted developments are transacted by third parties who have been entrusted by senior citizens with these transactions, this exclusion places an unfair burden on the residents of age-restricted communities.