New Jersey Property Taxes: How Should Your
Assessor Establish Your Property’s Assessed Value

The standard measure of property value is known as "true value" or market value, that is, what a willing, knowledgeable buyer would pay a willing, knowledgeable seller on the open market at a bona fide sale as of the statutory October 1 pretax year assessment date. The value of qualified farmland is based upon its productive capabilities when devoted to agricultural or horticultural uses.

NJ Property taxes are supposed to be assessed by uniform rules. The basic authority for the assessment of real property is derived from Article VIII, Section 1, paragraph 1 of the New Jersey Constitution. Implementing legislation is found in New Jersey Statutes Annotated Title N.J.S.A. 54:4-1 et seq.

Real property is required by law to be assessed at true value established by the county board of taxation in each county. All 21 counties in New Jersey have chosen 100% as the ratio of assessed to true value.

New Jersey's equalization program is designed to ensure that each taxing district, as a whole, is treated equitably. Equalized valuations are used to apportion the costs of local and county government; for the distribution of school aid; and for the distribution of costs of school districts covering more than one municipality. The principal part of the work of equalization lies in determining the true value of all real estate in each of New Jersey’s 566 municipalities.  True value is derived by sales of real estate within each municipality within the calendar year.

County, municipal and school budget costs determine the amount of property tax to be paid. A town's general tax rate is calculated by dividing the total dollar amount it needs to raise to meet local budget expenses by the total assessed value of all its taxable property. An individual's property taxes are then calculated by multiplying that general tax rate by the assessed value of his particular property. Because of New Jersey's strong "home rule" concept of government, the State does not participate in the making of local budgets, nor does it receive any of the property taxes collected.

Property tax payments are due annually in four installments, February 1, May 1, August 1 and November 1.

Call our office today. Ask for Mr. Niemann to personally discuss your tax appeal situation at 800-888-7442 or e-mail him at fniemann@hnlawfirm.com.