Reduce Your NJ Property Taxes with a Tax Appeal
Table of Contents:
- Introduction
- What is a tax appeal?
- The process of a tax appeal
- How to know if you're a good candidate for a tax appeal
- The estimated success of a tax appeal
- Timeline and filing deadlines for tax appeals
- How often can you file a tax appeal?
- Pros and cons of filing a tax appeal
- What to expect after closing on a home
- Conclusion
Introduction
Today, many homeowners in the state of New Jersey are wondering if they are paying too high property taxes and if they should consider a tax appeal. In this article, we will explore the topic of property tax appeals and provide valuable information about the process, eligibility, and success rates. We are joined by Ellie Fink, an expert in taxation law and a renowned advocate for New Jersey property owners. Let's dive into the world of tax appeals and discover if you too could benefit from this process.
What is a tax appeal?
A tax appeal is a process through which property owners can contest the assessed value of their property in order to reduce their property taxes. It is important to note that property owners within the same town pay the exact same tax rate based on the assessment or evaluation of their homes. Therefore, a tax appeal is essentially an argument about the value of the property. If the property owner can successfully prove that their house is overvalued, their taxes will be lowered in proportion to the reduction in valuation.
The process of a tax appeal
The process of a tax appeal is relatively straightforward. It begins with filing an appeal between February 1st and April 1st, although there may be exceptions to these dates. The property owner submits evidence, such as comparable sales, to demonstrate that the value of their property is lower than what the town has assessed. Prior to the hearing, there may be an opportunity to discuss a settlement with the tax assessor. If no settlement is reached, a hearing takes place before the county board, and the board issues a judgment with a potentially lowered assessment.
How to know if you're a good candidate for a tax appeal
Determining if you are a good candidate for a tax appeal depends on a few factors. If your recently purchased property was bought for less than the assessed value, you are likely a good candidate for an appeal. Similarly, if you've obtained an appraisal during a refinancing process and it indicates a lower value than the assessed value, you may also be a suitable candidate. It is advisable to consult with an expert like Ellie Fink, who can evaluate your situation and provide an opinion on your eligibility for a tax appeal.
The estimated success of a tax appeal
It is important to note that there is no guaranteed success in a tax appeal. However, based on Ellie Fink's extensive experience in successfully representing New Jersey property owners, there is a high likelihood of achieving a reduction in assessment. Every case is unique, and the extent of the reduction will vary. However, it is reassuring to know that most appeals result in some degree of reduction in property taxes. It is recommended to consult with Ellie Fink for a comprehensive evaluation of your specific situation.
Timeline and filing deadlines for tax appeals
The timeline for considering a property tax appeal begins on October 1st of the prior year. After this date, property owners can start evaluating their eligibility for an appeal. It is advisable to initiate the process as soon as possible, ideally from October 15th onwards. The filing deadline for an appeal is typically April 1st, with some exceptions. It is crucial to adhere to these deadlines to ensure that your appeal is considered. Missing the filing deadline may result in your appeal being dismissed.
How often can you file a tax appeal?
New Jersey property owners are allowed to file a tax appeal every year. However, it is important to consider that a subsequent appeal might yield a lower expected return. If you were successful in the past, it becomes less likely that you will be successful in the following year. Conversely, if your previous appeal was unsuccessful due to errors in evidence submission or lack of professional representation, you can file an appeal again. It is essential to note that a successful appeal triggers a freeze act, preventing the town from raising your assessment for a period of three years.
Pros and cons of filing a tax appeal
Filing a tax appeal comes with certain benefits and considerations. On the positive side, a successful appeal can lead to a reduction in property taxes, thereby providing financial relief for property owners. Additionally, the freeze act safeguards property owners from assessment increases for a three-year period. However, it is important to note that there is a filing fee associated with the appeal process. Furthermore, even after a successful appeal, there is a possibility that the town may argue for an increase in assessment if they believe the property is under-assessed by a margin of 15%.
What to expect after closing on a home
When working with buyers who are about to close on a home, one common question is about the expected property taxes after closing. It is important to note that the town is not allowed to raise the assessment solely based on the purchase price. However, if the town is undergoing a revaluation, there is a higher likelihood that the assessment will align with the market value. Additionally, property buyers should be aware that new constructions or properties with significant improvements may have lower assessments initially, with the expectation of increased taxes in the future.
Conclusion
Property tax appeals provide an opportunity for New Jersey homeowners to contest the assessed value of their properties and potentially lower their property taxes. With the guidance of professionals like Ellie Fink, property owners can navigate the appeal process and increase their chances of a successful outcome. The timeline, filing deadlines, and eligibility criteria should be carefully considered before initiating an appeal. Remember, each case is unique, and a consultation with an expert will help determine if you are a good candidate for a tax appeal. Take control of your property taxes and explore the possibility of a tax appeal today!
Highlights
- Property tax appeals in New Jersey provide relief for homeowners seeking to lower their property taxes.
- The process of a tax appeal involves filing an appeal, submitting evidence, and potentially attending a hearing.
- Eligibility for a tax appeal depends on factors such as recent purchase price or appraised value.
- The estimated success of a tax appeal is high, with most cases resulting in a reduction in property taxes.
- Filing deadlines for tax appeals must be met to ensure consideration.
- Property owners can file a tax appeal every year, but success rates may vary.
- Pros of filing a tax appeal include reduced property taxes and protection from assessment increases.
- Cons of filing a tax appeal include a filing fee and the potential for a counter-argument from the town.
- After closing on a home, property tax expectations may vary depending on revaluation and property improvements.
- Consultation with a tax appeal expert like Ellie Fink is essential for personalized guidance.
FAQ
Q: Can property owners appeal their assessment multiple times?
A: Yes, property owners in New Jersey can file a tax appeal every year. However, the expected outcome may vary depending on previous successful appeals and the nature of the property.
Q: What is the filing fee for a tax appeal?
A: The filing fee for a tax appeal varies and should be determined according to the specific rules and regulations of the respective jurisdiction. It is advisable to consult with a tax appeal expert for accurate information.
Q: Can the town increase the assessment after a successful appeal?
A: While it is possible for the town to argue for an increase in assessment if they believe the property is under-assessed by a margin of 15%, it is extremely unlikely, especially for residential properties.
Q: Can property taxes be reduced if the assessed value is higher than the purchase price?
A: Yes, if the assessed value is higher than the purchase price, property owners may be eligible for a tax appeal to lower their property taxes. The town is not allowed to raise the assessment based solely on the purchase price.
Q: What should property buyers expect regarding taxes after closing on a home?
A: The tax expectations after closing on a home may vary depending on factors such as purchase price, revaluation, and property improvements. Consulting with a tax professional is recommended to understand the specific circumstances of each case.
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