ASSEMBLY, No. 557

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblywoman TURNER

An Act concerning requirements for relief on appeal of property tax assessment and amending P.L.1973, c.123.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. Section 1 of P.L.1973, c.123 (C.54:1-35a) is amended to read as follows:

    1. a. The "average ratio" of assessed to true value of real property for a taxing district for the purposes of this act shall mean that ratio promulgated by the Director of the Division of Taxation pursuant to P.L.1954, c.86 (C.54:1-35.1 et seq.), as of October 1 of the year preceding the tax year, as revised by the tax court.

    b. The "common level range" for a taxing district is that range which is plus or minus [15%] 5% of the average ratio for that district.

(cf: P.L.1983, c.36, s.10)

    2. This act shall take effect immediately.

STATEMENT

    The purpose of this bill is to reduce the deviation from the common level of assessment for a property tax assessment appeal from plus or minus 15% to plus or minus 5%. Under the current law, if the average ratio for a taxing district translates into a tax amount of $4,000, then a homeowner cannot obtain relief on an appeal if his or her tax falls anywhere in the range from $3,400 to $4,600. This bill would permit a property taxpayer to obtain relief on an appeal when his or her tax exceeded $4,200, being more than 5% above the common level range. The sponsor believes that with increases in computerization and professionalism in the office of the municipal tax assessor there is no reason why the deviation of assessment for similar properties should be as high as 15%.

Permits property tax appeals when assessment deviates from common level range by more than 5%.