[First Reprint]

SENATE, No. 1982

STATE OF NEW JERSEY

INTRODUCED APRIL 17, 1997

By Senator INVERSO

An Act concerning certain Tax Court procedures, amending various sections of the statutory law, and supplementing Title 54 of the Revised Statutes.

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

    1. R.S.54:1-35 is amended to read as follows:

    54:1-35. The [commissioner] Director of the Division of Taxation shall prepare an abstract of the total ratables of the State, as returned by the county boards of taxation and corrected or confirmed by him in accordance with the State equalization table, and transmit a certified copy thereof to the [State Board of Tax Appeals] Tax Court, the county boards of taxation and the State Comptroller, who shall apportion the State school tax, State tax or State moneys, as provided by law, upon the ratables as shown in such abstract, which shall take the place for all such purposes of the annual abstracts heretofore filed by county boards of taxation in the office of the Comptroller under the provisions of section 54:4-52 of this Title.

(cf: P.L.1938, c.279, s.1.)

    2. R.S.54:3-21 is amended to read as follows:

    54:3-21. A taxpayer feeling aggrieved by the assessed valuation of [his] the taxpayer’s property, or feeling [that he is] discriminated against by the assessed valuation of other property in the county, or a taxing district which may feel discriminated against by the assessed valuation of property in the taxing district, or by the assessed valuation of property in another taxing district in the county, may on or before April 1, or 45 days from the date the bulk mailing of notification of assessment is completed in the taxing district, whichever is later, appeal to the county board of taxation by filing with it a petition of appeal; provided, however, that any such taxpayer or taxing district may on or before April 1, or 45 days from the date the bulk mailing of notification of assessment is completed in the taxing district, whichever is later, file a complaint directly with the [tax court]Tax Court, if the assessed valuation of the property subject to the appeal exceeds $750,000.00. Within ten days of the completion of the bulk mailing of notification of assessment, the assessor of the taxing district shall file with the county board of taxation a certification setting forth the date on which the bulk mailing was completed. If a county board of taxation completes the bulk mailing of notifications of assessment, the tax administrator of the county board of taxation shall within ten days of the completion of the bulk mailing prepare and keep on file a certification setting forth the date on which the bulk mailing was completed. A taxpayer shall have 45 days to file an appeal upon the issuance of a notification of a change in assessment. An appeal to the Tax Court by one party in a case in which the Tax Court has jurisdiction shall establish jurisdiction over the entire matter in the Tax Court. All appeals to the [tax court] Tax Court hereunder shall be in accordance with the provisions of the State [Tax] Uniform Tax Procedure Law, R.S.54:48-1 et seq.

    If a petition of appeal or a complaint is filed on April 1 or during the 19 days next preceding April 1, a taxpayer or a taxing district shall have 20 days from the date of service of the petition or complaint to file a cross-petition of appeal with a county board of taxation or a counterclaim with the [clerk of the tax court] Tax Court, as appropriate.

(cf: P.L.1991, c.75, s.28.)

    3. R.S.54:3-26 is amended to read as follows:

    54:3-26. The county board of taxation shall hear and determine all such appeals within 3 months after the last day for filing such appeals, and shall keep a record of its judgments thereon in permanent form, and shall transmit a written memorandum of its judgments to the assessor of the taxing district and to the taxpayer, setting forth the reasons on which such judgment was based, and in all cases where the amount of tax to be paid shall be changed as the result of an appeal, to the collector of the taxing district. The Director of the Division of Taxation shall prescribe such procedures and forms for the setting forth of such written memorandums of judgments as may be necessary.

    Whenever any review is sought of the determination of the county board of taxation, the complaint shall contain a copy of the memorandum of judgment of the county board.

    Where no request for review is taken to the Tax Court to review the action or determination of the county board involving real property the judgment of the county board shall be conclusive and binding upon the municipal assessor and the taxing district for the assessment year, and for the 2 assessment years succeeding the assessment year, covered by the judgment, except as to changes in value of the property occurring after the assessment date. [Where such changes are alleged the petition of appeal shall specifically set forth the nature of the changes relied upon as the basis for such appeal. However, the] The conclusive and binding effect of such judgment shall terminate with the tax year immediately preceding the year in which a program for a complete revaluation or complete reassessment of all real property within the district has been put into effect. If as of October 1 of the pretax year, the property in question has been the subject of an addition qualifying as an added assessment, a condominium or cooperative conversion, a subdivision or a zoning change, the conclusive and binding effect of such judgment shall terminate with said pretax year.

    If the assessor increases the assessment or fails to reflect on the tax duplicate a county board of taxation or Tax Court judgment issued prior to the final preparation of the tax duplicate in either of the two years following the year for which the judgment of the county board was rendered, and if said judgment is a final judgment not further appealed, ¹[and]¹ the burden of proof shall be on the taxing district to establish that the assessor acted ¹[reasonable] reasonably¹ in increasing the assessment. If the county board finds that the assessor did not act reasonably in increasing the assessment or failed to reflect said judgment on the tax duplicate, the county board shall award to the taxpayer reasonable counsel fee, appraisal costs and other costs which shall be paid by the taxing district.

(cf: P.L.1979, c.499, s.13)

    4. Section 1 of P.L.1976, c.114 (C.54:3-26.1) is amended to read as follows:

    1. In the event a county board of taxation cannot hear and determine any one or more appeals within the time prescribed in R.S.54:3-26, it may at any time apply to the [tax court] Director of the Division of Taxation for [an order to extend] extension of the time within which the appeal or appeals may be heard and determined. The application shall be granted upon a showing by the board that the number of appeals before it is disproportionate to the number of members hearing said appeals[,] or that the number of appeals has increased sufficiently to warrant an extension of time or for other good cause shown. [The court shall include in its order] If the application is granted, the Director of the Division of Taxation shall indicate the amount of tax, if any, a taxpayer shall pay during the period of such extension.

(cf: P.L.1983, c.36, s.14)

    5. R.S. 54:3-27 is amended to read as follows:

    54:3-27. A taxpayer who shall file an appeal from an assessment against him shall pay to the collector of the taxing district no less than the total of all taxes and municipal charges due, up to and including the first quarter of the taxes and municipal charges assessed against him for the current tax year in the manner prescribed in R.S.54:4-66.

    A taxpayer who shall file an appeal from an added or omitted assessment shall, in order to maintain an action contesting the added or omitted assessment, pay to the collector of the taxing district all unpaid prior years’ taxes and all of the taxes for the current year as said taxes become due and payable, exclusive of the taxes imposed under the added or omitted assessment.

    If an appeal involves Class 3B (Farm Qualified) or Classes 15A, B, C, D, E and F (Exempt Property as defined in R.S.54:4-52) and the subject of the appeal is statutory qualification, the taxpayer shall not be required to meet the payment requirements specified herein.

    The collector shall accept such amount, when tendered, give a receipt therefor and credit the taxpayer therewith, and the taxpayer shall have the benefit of the same rate of discount on the amount paid as he would have on the whole amount.

    Notwithstanding the foregoing, the county board of taxation may relax the tax payment requirement and fix such terms for payment of the tax as the interests of justice may require.

    The payment of part or all of the taxes upon any property, due for the year for which an appeal from an assessment upon such property has been or shall hereafter be taken, or of taxes for subsequent years, shall in nowise prejudice the status of the appeal or the rights of the appellant to prosecute such appeal, before the county board of taxation, the [tax court] Tax Court, or in any court to which the judgment arising out of such appeal shall be taken, except as may be provided for in R.S.54:51A-1.

(cf: P.L.1991, c.75, s.30.)

    6. Section 5 of P.L.1971, c.370 (C.54:4-3.3e) is amended to read as follows:

    5. In the event of any dispute between the owner and the State or State agency, or such authority, as the case may be, in respect to the apportionment and payment of the said taxes or proportion thereof, the [Superior Court] Tax Court shall have jurisdiction to determine the matter in a summary manner on the application of either the owner or of the State, State agency, or authority, as the case may be, and make any order as may be required and appropriate to carry out the court's determination.

(cf: P.L.1971, c.370, s.5)

    7. Section 11 of P.L.1941, c.397 (C.54:4-63.11) is amended to read as follows:

    11. Appeals from added assessments [shall] may be made to the county board of taxation on or before December 1 of the year of levy, or 30 days from the date the collector of the taxing district completes the bulk mailing of tax bills for added assessments, whichever is later, and the county board of taxation shall hear and determine all such appeals within 1 month after the last day for filing such appeals; provided, however, that appeals from added assessments may be made directly to the Tax Court on or before December 1 of the year of levy, or 30 days from the date the collector of the taxing district completes the bulk mailing of tax bills for added assessments, whichever is later, if the aggregate assessed valuation of the property exceeds $750,000.00. Within ten days of the completion of the bulk mailing of tax bills for added assessments, the collector of the taxing district shall file with the county board of taxation a certification setting forth the date on which the bulk mailing was completed. Appeals to the [tax court] Tax Court from the judgment of the county board of taxation shall be made within 45 days from the date fixed for final decisions by the county board of taxation on appeals from added assessments. In all other respects such appeals shall be governed by the laws concerning appeals from real property assessments.

(cf: P.L.1983, c.36, s.18,)

    8. (New section) In the event a county board of taxation cannot hear and determine any one or more appeals from assessor’s added assessments within the time prescribed in section 11 of P.L.1941, c.397 (C.54:4-63.11), it may at any time apply to the Director of the Division of Taxation for an extension of the time within which the appeal or appeals may be heard and determined. The application shall be granted upon a showing by the board that the number of appeals before it is disproportionate to the number of members hearing said appeals or that the number of appeals has increased sufficiently to warrant an extension of time or for other good cause shown.

    9. Section 9 of P.L.1968, c.184 (C.54:4-63.39) is amended to read as follows:

    9. Section 9 of P.L.1968, c.184 (C.54:4-63.39) is amended to read as follows:

    9. Appeals from assessor's omitted assessments [shall] may be made to the county board of taxation on or before December 1 of the year of levy or 30 days from the date the collector of the taxing district completes the bulk mailing of tax bills for omitted assessments, whichever is later, and the county board shall hear and determine all such appeals within 1 month after the last day for filing such appeals, provided, however, that appeals from assessor’s omitted assessments may be made directly to the Tax Court on or before December 1 of the year of levy, or 30 days from the date the collector of the taxing district completes the bulk mailing of tax bills for omitted assessments, whichever is later, if the aggregate assessed valuation of the property exceeds ¹[$75,000.00] $750,000.00¹. Within ten days of completion of the bulk mailing of tax bills for omitted assessments, the collector of the taxing district shall file with the county board of taxation a certification setting forth the date on which the bulk mailing was completed. Appeals to the [tax court] Tax Court from the judgment of the county board of taxation shall be made within 45 days from the date fixed for final decisions by the county board of taxation on appeals from assessor's omitted assessments. In all other respects such appeals shall be governed by the laws concerning appeals from real and personal property assessments.

(cf: P.L.1983, c.36, s.20)

    10. (New section) In the event a county board of taxation cannot hear and determine any one or more appeals from assessor’s omitted assessments within the time prescribed in section 9 of P.L.1968, c.184 (C.54:4-63.39), it may at any time apply to the Director of the Division of Taxation for an extension of the time within which the appeal or appeals may be heard and determined. The application shall be granted upon a showing by the board that the number of appeals before it is disproportionate to the number of members hearing said appeals or that the number of appeals has increased sufficiently to warrant an extension of time or for other good cause shown.

    11. Section 1 of P.L.1944, c.220 (C.54:38A-1) is amended to read as follows:

    1. Where the [State Tax Commissioner] Director of the Division of Taxation claims that a decedent was domiciled in this State at the time of death and the taxing authorities of another State or States make a similar claim with respect to their State or States, and investigation discloses a reasonable doubt regarding domicile, the [State Tax Commissioner] Director may, in his discretion, enter into a written agreement with such taxing authorities and the executor, administrator or trustee, fixing the sum acceptable to this State in full settlement of the transfer inheritance tax imposable under chapters thirty-three to thirty-six, inclusive, of Title 54 of the Revised Statutes; provided, that said agreement also fixes the sum acceptable to such other State or States in full settlement of the death taxes imposable by such State or States; and provided further, that said agreement has the approval of [the ordinary of this State] a judge of the Tax Court of New Jersey. If the aggregate amount payable under such agreement to the States involved is less than the maximum sum allowable as a credit to the estate against the Federal estate tax imposed thereon, then the executor, administrator or trustee shall also pay to the [State Tax Commissioner] Director so much of the difference between such aggregate amount and the amount of such credit as the amount payable to the [State Tax Commissioner] Director under the agreement bears to such aggregate amount, and the agreement aforesaid shall so provide. Payment of the sum or sums fixed by said agreement shall be accepted by the [State Tax Commissioner] Director in full satisfaction of this State's claim for transfer inheritance and estate taxes which would otherwise be chargeable under subtitle five of Title 54 of the Revised Statutes, and the executor, administrator or trustee is hereby empowered to enter into the agreement provided for herein.

(cf: P.L.1944, c.220, s.1)

    12. R.S.54:48-1 is amended to read as follows:

    54:48-1. This subtitle may be cited as the State [Tax] Uniform Tax Procedure Law.

(cf: P.L.1983, c.36, s.46)

    13. R.S.54:51A-1 is amended to read as follows.

    54:51A-1. Review of judgment, action or determination of county board of taxation. a. Any party who is dissatisfied with the judgment, action or determination of the county board of taxation may seek review of that judgment, action or determination in the [tax court] Tax Court by filing a complaint in the [tax court] Tax Court, pursuant to rules of court.

    b. At the time that a complaint has been filed with the [tax court] Tax Court seeking review of judgment of county tax boards, all taxes or any installments thereof then due and payable for the year for which review is sought must have been paid. [No interest shall be due and payable by the appellant for the period from November 1 of the current tax year to the date of filing the complaint.] Notwithstanding the foregoing, the Tax Court may relax the tax payment requirement and fix such terms of payments as the interests of justice may require.

    c. If the [tax court] Tax Court shall determine that the appeal to the county board of taxation has been (1) withdrawn at the hearing, or previously thereto in writing by the appellant or his agent; (2) dismissed because of appellant's failure to prosecute the appeal at a hearing called by the county tax board; (3) settled by mutual consent of the taxpayer and assessor of the taxing district, there shall be no review. This provision shall not preclude a review by the [tax court] Tax Court in the event that the appeal was "dismissed without prejudice" by the county board of taxation.

(R.S.54:51A-1)

    14. R.S.54:51A-2 is amended to read as follows:

    54:51A-2. Direct appeal to tax court in certain cases. Where any taxpayer or taxing district shall file a direct appeal to the [tax court] Tax Court pursuant to R.S.54:3-21, a copy of the complaint shall also be filed with the assessor and the clerk of the taxing district, who shall forthwith notify the collector and all other municipal officials as the governing body shall direct of the content thereof. [The tax court may, on or after April 1 next following the filing of the complaint, proceed to hear and determine all issues raised therein.]

(cf: R.S.54:51A-2)

    15. R.S.54:51A-3 is amended to read as follows:

    54:51A-3. Exemption of Class 3B (Farm Qualified) and ¹[Calss] Class¹ 15D, E and F (Exempt Property) from provisions of subsection b. of R.S.54:51A-1. Class 3B (Farm Qualified) and [Class 15] Classes 15A, B, C, D, E and F (Exempt Property as defined in R.S.54:4-52) in appeal where a statutory qualification is the subject of the appeal are exempt from those provisions contained in subsection b. of R.S.54:51A-1.

(cf: R.S.54:51A-3)

    16. R.S.54:51A-8 is amended to read as follows:

    54:51A-8. Conclusiveness of judgment; changes in value; effect of revaluation program. Where a [final] judgment not subject to further appeal has been rendered by the [tax court] Tax Court involving real property, the judgment shall be conclusive and binding upon the municipal assessor and the taxing district, parties to the proceeding, for the assessment year and for the 2 assessment years succeeding the assessment year covered by the final judgment, except as to changes in the value of the property occurring after the assessment date. [Where those changes are alleged, the complaint shall specifically set forth the nature of the changes relied upon as the basis for the appeal. However, the] The conclusive and binding effect of the judgment shall terminate with the tax year immediately preceding the year in which a program for a complete revaluation or complete reassessment of all real property within the district has been put into effect. If as of October 1 of the pretax year, the property in question has been the subject of an addition qualifying as an added assessment, a condominium or cooperative conversion, a subdivision or a zoning change, the conclusive and binding effect of such judgment shall terminate with said pretax year.

    If the assessor increases the assessment or fails to reflect on the tax duplicate a county board of taxation or Tax Court judgment issued prior to the final preparation of the tax duplicate in either of the two years following the year for which the judgment of the Tax Court was rendered and if said judgment is a final judgment not subject to further appeal, the burden of proof is on the taxing district to establish that the assessor acted reasonably in increasing the assessment. If the Tax Court finds that the assessor did not act reasonably in increasing the assessment or failed to reflect said judgment on the tax duplicate, the Tax Court shall award to the taxpayer reasonable counsel fees, appraisal costs and other costs which shall be paid by the taxing district.

(cf: R.S.54:51A-8)

    17. R.S.54:51A-9 is amended to read as follows:

    54:51A-9. Time for taking real property tax cases to tax court.     a. Except as otherwise provided in this section, a complaint seeking review of adjudication or judgment of the county board of taxation shall be filed within 45 days of the service of the judgment.

    b. Direct appeals to the [tax court] Tax Court of assessments of property with an assessed valuation [of property] in excess of $750,000.00 as provided in R.S.54:3-21 shall be filed on or before [August 15] April 1 of the tax year or 45 days from the date the bulk mailing of notifications of assessment is completed for the taxing district, whichever is later, or with regard to added or omitted assessments, on or before December 1 of the year of levy, or 30 days from the date the collector of the taxing district completes the bulk mailing of tax bills for added assessment or omitted assessments, whichever is later.

    c. All real property tax cases not provided for herein shall be taken in the manner and time prescribed for such appeals by the rules of the tax court.

(cf: R.S.54:51A-9)

    18. The Director of the Division of Taxation is authorized to promulgate any rules or regulations necessary to implement the provisions of P.L. , c. (now pending before the Legislature as this bill.)

    19. Sections 1 and 2 of P.L.1973, c.69 (C.54:3-21.4 and C.54:3-21.5) are repealed.

    20. This act shall take effect immediately.

Adopts series of amendments dealing with Tax Court proceedings.