Bill Text: NJ A3313 | 2014-2015 | Regular Session | Introduced
Bill Title: Revises property assessment calendar.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-06-05 - Introduced, Referred to Assembly State and Local Government Committee [A3313 Detail]
Download: New_Jersey-2014-A3313-Introduced.html
Sponsored by:
Assemblyman VINCENT MAZZEO
District 2 (Atlantic)
SYNOPSIS
Revises property assessment calendar.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the administration of the assessment of real property, and amending various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 19 of P.L.1979, c.499 (C.54:3-5.1) is amended to read as follows:
19. a. The president of each county board of taxation shall [annually on or before August 15] report to the Director of the Division of Taxation in the Department of the Treasury[, except that the president of a county board of taxation participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104) shall make this required report to the director] annually on or before June 1. Such report shall be in such form as shall be prescribed by the director and shall contain such information and statistics as may be appropriate to demonstrate for the immediately preceding 3-month period during which tax appeals were heard by the county board: the total number of appeals filed with the county board; the disposition of the various appeals disposed of during that period; the character of appeals filed with regard to the classification of properties appealed; the total amount of assessments involved in those appeals; the number of appeals filed in each filing fee category during that period; and, the total amount of reductions and increases of assessed valuation granted by the board during that period.
b. The Director of the Division of Taxation shall annually review the reports required under subsection a. of this section, and shall include a summary of the information contained therein in the division's annual report.
(cf: P.L.2013, c.15, s.6)
2. R.S.54:3-17 is amended to read as follows:
54:3-17. Each county tax administrator shall annually ascertain and determine, according to his best knowledge and information, the general ratio or percentage of true value at which the real property of each taxing district is in fact assessed according to the tax lists laid before the board. On or before [March 1] May 15 of each year, [or on or before May 15 in the case of a county board of taxation participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104),] the county tax administrator shall prepare and submit to the county board an equalization table showing, for each district, the following items:
(a) The percentage level established pursuant to law for expressing the taxable value of real property in the county;
(b) The aggregate assessed value of the real property, exclusive of class II railroad property;
(c) The ratio of aggregate assessed to aggregate true value of the real property, exclusive of class II railroad property;
(d) The aggregate true value of the real property, exclusive of class II railroad property;
(e) The amount by which the valuation in item (b) should be increased or decreased in order to correspond to item (d);
(f) The aggregate assessed value of machinery implements and equipment and all other personal property used in business;
(g) The aggregate true value of machinery, implements and equipment and all other personal property used in business;
(h) The aggregate equalized valuation of machinery, implements and equipment and all other personal property used in business, computed by multiplying the aggregate true value thereof by the lower of (1) that percentage level established pursuant to law for expressing the taxable value of real property in the county, or (2) the average ratio of assessed to true value of real property as promulgated by the director on October 1 of the pretax year, pursuant to chapter 86, laws of 1954, for State school aid purposes, as the same may have been modified by the Tax Court;
(i) The amount by which the valuation in item (f) should be increased or decreased in order to correspond to item (h).
A copy of the table shall be mailed to the assessor of each district, and to the Division of Taxation, and be posted at the courthouse, not later than [March 1, or not later than] May 15 [in the case of a county board of taxation participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104)].
(cf: P.L.2013, c.15, s.7)
3. R.S.54:3-18 is amended to read as follows:
54:3-18. The county board of taxation in each county shall meet annually for the purpose of reviewing the equalization table prepared pursuant to R.S.54:3-17 with respect to the several taxing districts of the county. At the meeting a hearing shall be given to the assessors and representatives of the governing bodies of the various taxing districts for the purpose of determining the accuracy of the ratios and valuations of property as shown in the equalization table, and the board shall confirm or revise the table in accordance with the facts. The hearings may be adjourned from time to time but the equalization shall be completed before [March 10, or not later than] May 25 [in the case of a county board of taxation participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104)]. At the first hearing any taxing district may object to the ratio or valuation fixed for any other district, but no increase in any valuation as shown in the table shall be made by the board without giving a hearing, after 3 days' notice, to the governing body and assessor of the taxing district affected.
(cf: P.L.2013, c.15, s.8)
4. R.S.54:3-21 is amended to read as follows:
54:3-21. a. [(1) Except as provided in subsection b. of this section a taxpayer feeling aggrieved by the assessed valuation of the taxpayer's property, or feeling 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, if the assessed valuation of the property subject to the appeal exceeds $1,000,000. In a taxing district where a municipal-wide revaluation or municipal-wide reassessment has been implemented, a taxpayer or a taxing district may appeal before or on May 1 to the county board of taxation by filing with it a petition of appeal or, if the assessed valuation of the property subject to the appeal exceeds $1,000,000, by filing a complaint directly with the State Tax Court. 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 notification 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 hereunder shall be in accordance with the provisions of the State 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 Tax Court, as appropriate.
(2) With respect to property located in a county participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104), and except] Except as provided in subsection b. of this section, a taxpayer feeling aggrieved by the assessed valuation of the taxpayer's property, or feeling 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 January 15, or 45 days from the date the bulk mailing of notification of assessment is completed in the taxing district, whichever date 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 date is later, file a complaint directly with the Tax Court, if the assessed valuation of the property subject to the appeal exceeds $1,000,000.
If a petition of appeal is filed on January 15 or during the 19 days next preceding January 15, or a complaint is filed with the Tax Court 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 Tax Court, as appropriate.
Within 10 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 notification of assessment, the tax administrator of the county board of taxation shall within 10 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 hereunder shall be in accordance with the provisions of the State Uniform Tax Procedure Law, R.S.54:48-1 et seq.
b. No taxpayer or taxing district shall be entitled to appeal either an assessment or an exemption or both that is based on a financial agreement subject to the provisions of the "Long Term Tax
Exemption Law" under the appeals process set forth in subsection a. of this section.
(cf: P.L.2013, c.15, s.9)
5. Section 18 of P.L.1979, c.499 (C.54:3-21.3a) is amended to read as follows:
18. All revenues received by the county from fees, either established or increased pursuant to this amendatory and supplementary act, shall be used exclusively for the purposes of modernizing the record-retention capabilities of the county board of taxation, for defraying the costs incurred by the county board of taxation in recording and transcribing appeal proceedings, setting forth memorandums of judgment and in providing copies thereof, and for paying any salary required to be paid by the county under R.S.54:3-6 and R.S.54:3-8, which [is] was increased pursuant to [this amendatory and supplementary act, and to effectuate the provisions of the real property assessment demonstration program established by section 4 of P.L.2013, c.15 (C.54:1-104)] sections 3 and 5 of P.L.1979, c.499.
(cf: P.L.2013, c.15, s.10)
6. R.S.54:4-23 is amended to read as follows:
54:4-23. All real property shall be assessed to the person owning the same on October 1 in each year. The assessor shall ascertain the names of the owners of all real property situate in his taxing district, and after examination and inquiry, determine the full and fair value of each parcel of real property situate in the taxing district at such price as, in his judgment, it would sell for at a fair and bona fide sale by private contract on October 1 next preceding the date on which the assessor shall complete his assessments, as hereinafter required; provided, however, that in determining the full and fair value of land which is being assessed and taxed under the [Farmland Assessment Act of 1964, chapter 48, laws of 1964] "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.), the assessor shall consider only those indicia of value which such land has for agricultural or horticultural use as provided by said act; and provided further however, that when the assessor has reason to believe that property comprising all or part of a taxing district has been assessed at a value lower or higher than is consistent with the purpose of securing uniform taxable valuation of property according to law for the purpose of taxation, or that the assessment of property comprising all or part of a taxing district is not in substantial compliance with the law and that the interests of the public will be promoted by a reassessment of such property, the assessor shall, after due investigation, make a reassessment of the property in the taxing district that is not in substantial compliance, provided that (1) the assessor has first notified, in writing, the mayor, the municipal governing body, the county board of taxation, and the county tax administrator of the basis of the assessor's determination that a reassessment of that property in the taxing district is warranted and (2) the assessor has submitted a copy of a compliance plan to the county board of taxation for approval. [In the case of real property located in a county participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104), the assessor of the municipality in which the real property is situate, after due investigation, shall make a reassessment of the property in the taxing district that is not in substantial compliance.] Following a reassessment of a portion of the taxing district pursuant to the provisions of this section, the assessor shall certify to the county board of taxation, through such sampling as the county board of taxation deems adequate, that the reassessment is in substantial compliance with the portions of the taxing district that were not reassessed. For the purposes of assessment, the assessor shall compute and determine the taxable value of such real property at the level established for the county pursuant to law.
(cf: P.L.2013, c.15, s.11)
7. R.S.54:4-35 is amended to read as follows:
54:4-35. [a. Except as provided in subsection b. of this section, the] The assessor shall determine his taxable valuations of real property as of October 1 in each year and shall complete the preparation of [his assessment list by January 10 following, on which date he shall attend before the county board of taxation and file with the board his complete assessment list, and a true copy thereof, to be called the assessor's duplicate. Such list and duplicate shall include the assessments of personal property reported or determined pursuant to this chapter. They shall be properly made up in such manner and form required by the Director of the Division of Taxation pursuant to R.S.54:4-26, to be examined, revised and corrected by the board as provided by law.
b. In the case of a municipality located in a county where the county board of taxation is participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104), the assessor shall determine the taxable valuations of real property as of October 1 in each year and shall complete the preparation of] the preliminary assessment list by November 1, and the assessor shall appear on that date before the county board of taxation and shall file with the board a hard copy of the complete preliminary assessment list, or shall certify to the board, on forms promulgated by the Director of the Division of Taxation in the Department of the Treasury, that the electronic file within the county's MOD-IV tax system is his complete preliminary assessment list.
After all of the assessment appeals filed with the county tax board have been decided, the assessor shall complete the preparation of the final assessment list by May 5, on which date the assessor shall appear before the county board of taxation and shall file with the board his completed final assessment list, and a true copy of the final assessment list, which true copy shall be the assessor's duplicate. The final assessment and the assessor's duplicate shall include the assessments of personal property reported or determined pursuant to the requirements of chapter 4 of Title 54 of the Revised Statutes, in such manner and form as shall be required by the director pursuant to R.S.54:4-26, and shall be examined, revised and corrected by the board as provided by law.
(cf: P.L.2013, c.15, s.13)
8. R.S.54:4-38 is amended to read as follows:
54:4-38. a. [Except as provided in subsection b. of this section, every assessor, at least ten days before filing the complete assessment list and duplicate with the county board of taxation, and before annexing thereto his affidavit as required in section 54:4-36 of this title, shall notify each taxpayer of the current assessment and preceding year's taxes and give public notice by advertisement in at least one newspaper circulating within his taxing district of a time and place when and where the assessment list may be inspected by any taxpayer for the purpose of enabling the taxpayer to ascertain what assessments have been made against him or his property and to confer informally with the assessor as to the correctness of the assessments, so that any errors may be corrected before the filing of the assessment list and duplicate. Thereafter, the assessor shall notify each taxpayer by mail within 30 days of any change to the assessment. This notification of change of assessment shall contain the prior assessment and the current assessment.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
b. [In the case of a municipality located in a county where the county board of taxation is participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104), every] Every assessor, before filing the preliminary assessment list with the county board of taxation pursuant to [subsection b. of] R.S.54:4-35, shall notify each taxpayer of the preliminary assessment and preceding year's taxes and give public notice by advertisement in at least one newspaper circulating within his taxing district of a time and place when and where the assessment list may be inspected by any taxpayer for the purpose of enabling the taxpayer to ascertain what assessments have been made against the taxpayer or the taxpayer's property. Thereafter, the assessor shall notify each taxpayer by mail within 30 days of any change to the assessment. This notification of change of assessment shall contain the prior assessment and the current assessment.
(cf: P.L.2013, c.15, s.14)
9. Section 32 of P.L.1991, c.75 (C.54:4-38.1) is amended to read as follows:
32. a. [Except as provided in subsection b. of this section, every assessor, prior to February 1, shall notify by mail each taxpayer of the current assessment and preceding year's taxes. Thereafter, the assessor or county board of taxation shall notify each taxpayer by mail within 30 days of any change to the assessment. This notification of change of assessment shall contain the prior assessment and the current assessment. The director shall establish the form of notice of assessment and change of assessment. Any notice issued by the assessor or county board of taxation shall contain information instructing taxpayers on how to appeal their assessment.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
b. [In the case of a municipality located in a county where the county board of taxation is participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104), every] Every assessor, on or before November 15 of the pretax year, shall notify by mail each taxpayer of the preliminary assessment and preceding year's taxes. Thereafter, the assessor or county board of taxation shall notify each taxpayer by mail within 30 days of any change to the assessment. This notification of change of assessment shall contain the prior assessment and the current assessment. The director shall establish the form of notice of assessment and change of assessment. Any notice issued by the assessor or county board of taxation shall contain information instructing taxpayers on how to appeal their assessment.
c. [The county board of taxation of the demonstration county shall make the preliminary data electronically accessible to the public by posting the data in searchable form on the county's website not later than 15 business days after the submission of the preliminary data.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
(cf: P.L.2013, c.15, s.15)
10. R.S.54:4-52 is amended to read as follows:
54:4-52. The county board of taxation shall, on or before [May 20, or on or before] May 31 [in the case of a county board of taxation participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104)], fill out a table of aggregates copied from the duplicates of the several assessors and the certifications of the Director of the Division of Taxation relating to second-class railroad property, and enumerating the following items:
(1) The total number of acres and lots assessed;
(2) The value of the land assessed;
(3) The value of the improvements thereon assessed;
(4) The total value of the land and improvements assessed, including:
a. Second-class railroad property;
b. All other real property.
(5) The value of the personal property assessed, stating in separate columns:
a. Value of household goods and chattels assessed;
b. Value of farm stock and machinery assessed;
c. Value of stocks in trade, materials used in manufacture and other personal property assessed under section 54:4-11;
d. Value of all other tangible personal property used in business assessed.
(6) Deductions allowed, stated in separate columns:
a. Household goods and other exemptions under the provisions of section 54:4-3.16 of this Title;
b. Property exempted under section 54:4-3.12 of this Title.
(7) The net valuation taxable;
(8) Amounts deducted under the provisions of sections 54:4-49 and 54:4-53 of this Title or any other similar law (adjustments resulting from prior appeals);
(9) Amounts added under any of the laws mentioned in subdivision 8 of this section (like adjustments);
(10) Amounts added for equalization under the provisions of sections 54:3-17 to 54:3-19 of this Title;
(11) Amounts deducted for equalization under the provisions of sections 54:3-17 to 54:3-19 of this Title;
(12) Net valuation on which county, State and State school taxes are apportioned;
(13) The number of polls assessed;
(14) The amount of dog taxes assessed;
(15) The property exempt from taxation under the following special classifications:
a. Public school property;
b. Other school property;
c. Public property;
d. Church and charitable property;
e. Cemeteries and graveyards;
f. Other exemptions not included in foregoing classifications subdivided showing exemptions of real property and exemptions of personal property;
g. The total amount of exempt property.
(16) State road tax;
(17) State school tax;
(18) County taxes apportioned, exclusive of bank stock taxes;
(19) Local taxes to be raised, exclusive of bank stock taxes, subdivided as follows:
a. District school tax;
b. Other local taxes.
(20) Total amount of miscellaneous revenues, including surplus revenue appropriated, for the support of the taxing district budget, which, for a municipality operating under the State fiscal year, shall be the amounts for the fiscal year ending June 30 of the year in which the table is prepared;
(21) District court taxes;
(22) Library tax;
(23) Bank stock taxes due taxing district;
(24) Tax rate for local taxing purposes to be known as general tax rate to apply per $100.00 of valuation, which general tax rate shall be rounded up to the nearest one-half penny after receipt in any year of a municipal resolution submitted to the county tax board on or before April 1 of that tax year requesting that the general tax rate be rounded up to the nearest one-half penny.
For municipalities operating under the State fiscal year, the amount for local municipal purposes shall be the amount as certified pursuant to section 16 of P.L.1994, c.72 (C.40A:4-12.1). The table shall also include a footnote showing the amount raised by taxation for municipal purposes as shown in the State fiscal year budget ending June 30 of the year the table is prepared.
In addition to the above such other matters may be added, or such changes in the foregoing items may be made, as may from time to time be directed by the Director of the Division of Taxation. The forms for filling out tables of aggregates shall be prescribed by the director and sent by him to the county treasurers of the several counties to be by them transmitted to the county board of taxation. Such table of aggregates shall be correctly added by columns and shall be signed by the members of the county board of taxation and shall within three days thereafter be transmitted to the county treasurer who shall file the same and forthwith cause it to be printed in its entirety and shall transmit certified copy of same to the Director of the Division of Taxation, the State Auditor, the Director of the Division of Local Government Services in the Department of Community Affairs, the clerk of the board of freeholders, and the clerk of each municipality in the county.
(cf: P.L.2013, c.15, s.16)
11. (New section) The State Treasurer, in consultation with the Director of the Division of Taxation in the Department of the Treasury, pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations to effectuate the provisions of this act, except that notwithstanding any provision of P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the Director of the Division of Local Government Services in the Department of Community Affairs and the State Treasurer may adopt, immediately upon filing with the Office of Administrative Law, such rules and regulations as deemed necessary to implement the provisions of this act which shall be effective for a period not to exceed 12 months and shall thereafter be amended, adopted, or re-adopted in accordance with the provisions of P.L.1968, c.410 (C.52:14B-1 et seq.).
12. This act shall take effect immediately.
STATEMENT
This bill would revise the current dates for the administration of the assessment of real property in order to create a more accurate process for that essential assessment function. The provisions of the bill specifically address the systemic costs which result from the losses due to successful assessment appeals by property owners, which reduce the property tax base, and which require municipalities to refund large amounts of property taxes collected from those property owners prior to the successful assessment appeal, which lowers their assessment, and thereby lowers the amount of property taxes due and payable from those property owners.
Under current law, every municipal tax assessor files the municipality's tax list with the county board of taxation, which subsequently sets the local tax rates. Assessment appeals are filed by property owners on April 1 of each year, or on May 1 in the case of a municipality that has undergone a municipal-wide revaluation or reassessment of real property. Appeals are heard by the county tax board and generally decided in most, if not all, cases by the end of July. Successful appeals that late in the tax year result in reduced assessments, which results in a reduced municipal tax base, which then results in the under-collection of property taxes to fund current year operations. The bill proposes the re-scheduling of the property assessment appeal process to dates prior to the calculation of the local property tax rate, which would allow for a more accurate local property tax rate to reflect local budgetary needs and the true value of the tax base that provides the property tax revenue to fund the local budget.
Currently, Gloucester County is operating under a pilot real property assessment program, the "Property Tax Assessment Reform Act," P.L.2009, c.118 (C.54:1-86 et seq.), which created a county-based real property assessment system under a county assessor and deputy county assessors. This pilot program utilizes the current real property assessment calendar currently set in New Jersey law. Gloucester County has expressed support for the changes to the current real property assessment calendar proposed in this bill.
This bill does not in any way affect any of the provisions of the "Real Property Assessment Demonstration Program" currently operating in Monmouth County.
The following chart sets forth the current statutory dates relative to the individual functions that comprise the real property assessment process, and the proposed dates for those functions under the bill:
|
DATES RELATIVE TO CERTIFICATION OF THE TAX LIST, ASSESSMENT APPEALS, AND THE CALCULATION OF LOCAL TAX RATES IN ALL MUNICIPALITIES |
||
|
Description of Function |
Current Date |
Proposed Date |
|
Assessing Date |
October 1 of pre-tax year |
October 1 of pre-tax year |
|
Certification of Preliminary Assessment |
N/A |
November 1 of pre-tax year |
|
Notification of Assessment Postcards |
February 1 |
November 15 of pre-tax year |
|
Assessment Appeal Filing Deadline |
April 1; May 1 in municipalities wherein revaluation of real property has occurred |
January 15 |
|
Assessment Appeals Heard |
May, June and July |
February, March and April |
|
Tax List Filed |
January 10 |
May 5 |
|
County Preliminary Equalization |
March 10 |
May 15 |
|
County Final Equalization |
March 10 |
May 25 |
|
Municipal Budget to Tax Board |
March 31 |
May 15 |
|
County Budget to Tax Board |
April 1 |
May 15 |
|
School Budget to Tax Board |
May 19 |
May 15 |
|
Certified Tax Rates |
May 20 |
May 31 |
|
Tax Duplicates |
June 3 |
June 3 |
|
Tax Bills |
June 14 |
June 14 |
