Property owners in New Jersey that have engaged in recent improvements or expansions of their property or purchased tax exempt property this year may be at risk for an unexpected tax increase by way of an added or omitted assessment. Taxpayers are typically surprised to receive these tax notices seeking additional property taxes going back two years in some cases.

In October of each year, tax assessors send out notices of added or omitted assessments that allow them to assess new construction or physical alterations to properties that have been completed in that calendar year. The added assessment is the amount of the difference between the property assessment before the improvement and the value of the entire property after the improvement. The improvement is valued as of the first day of the month following substantial completion and is prorated for the number of full months remaining in the tax year.

In the case of previously exempt property, the added amount is the tax due on the property without the exemption, prorated from the date the property became non-exempt. A property may lose its exemption for various reasons, including purchase by a for profit entity or a change in the use.

The added assessment and the omitted assessment taxes are due on November 1, 2019. The strict deadline for filing an appeal of the added or omitted assessment is December 1, 2019.

If you received an added or added omitted notice or are otherwise considering whether to file a property tax appeal for the upcoming year, the experienced team at Murphy Partners LLP is ready to provide a complimentary evaluation of your property. If we determine that an appeal will be beneficial, we will recommend a strategy to reduce your tax burden and can file and pursue your appeal.

Roosevelt J. Donat is Special Counsel at Murphy Partners LLP and is a member of the firm’s Property Tax Appeal practice group.

As a boutique law firm specializing in commercial real estate, our team has invaluable insight into the real estate market and has successfully litigated the value of virtually all property types. Our team also has considerable experience advising on tax exemptions, or other tax incentive programs, that may be available to reduce your property tax burden outside of the appeal process. Our experience and deep broad-based knowledge allow us to consider all options that may be available to potentially reduce your tax burden.

For additional information concerning our property tax appeal services, or to request an evaluation of your property, please feel free to reach out to Thomas Dolan or Roosevelt Donat at (973) 877-6984 or via email at tdolan@murphyllp.com or rdonat@murphyllp.com.