ADVERTISEMENT

REAL ESTATE

TAX APPEALS

With the Recent Changes in Federal Tax Laws a Careful Review of How Much You

Pay in Real Estate Taxes Matters

Have you been paying too much in real estate taxes on your commercial, industrial, residential, and/or investment property? If so, you should be reviewing your 2018 assessment to determine if an appeal should be filed.

On or before Februaiy 1 si, the municipal tax assessor is required by law to give notice to each taxpayer of the real property tax assessment imposed against his or her property. While this notice will tell you what the assessment will be for 2018, you must also know your municipality's "average ratio" of assessed value to true value to determine the value which the municipality is ·really placing on your property. For example, property which is assessed at $850,000.00 in a municipality which has an average ratio of 77% means that the property has an implied fair market value of $1,103,896.10.

Filing Deadline

The deadline for filing an appeal to challenge a tax assessment for 2018 is Monday, April 2, 2018*. It is strongly recommended that all appeals be filed as early as possible to avoid missing the deadline. The postmark transmitting your appeal to the Tax Court of New Jersey or the County Board of Taxation does not satisfy the filing deadline. Your appeal must actually be received by the Court or the County Board by the filing deadline.

*In ·taxing districts which have implemented town-wide reassessments or revaluations, the filing deadline is May 1, 2018.

LI BEATTIE PADOVANOLLC

VOL. XVIII, NO. 1 2018

Should You File an Appeal

Beattie Padovano, LLC has successfully filed, litigated and negotiated settlements of tax appeals on retail, commercial, industrial, vacant land, rental and residential properties before the County Tax Board, Tax Court and Appellate Division. Our efforts have secured significant refunds, the payment of interest and lower tax payments for our clients. We can help you in determining whether you should file a tax appeal. Once an appeal is filed, we work closely with you and your real estate appraiser presenting your appeal to the municipality, County Tax Board and the Tax Court.

If you believe that you are paying too much, use the worksheet in this newsletter or call for a free consultation . to discuss whether you can lower your property taxes.

Do Not Wait for Your Tax Bill, Estimate Your 2018 Tax Payments

Even though your appeal must be filed on or before April 2, 2018, your 2018 tax bill may not be received until after July 1st. Waiting to receive your tax bill to decide whether or not to file an appeal is not possible. If you wait to receive your tax bill, it is very likely that you will be precluded from filing a challenge to your 2018 assessment. To estimate your 2018 tax bill, multiply the assessed value identified in the Notice of Assessment received from the local assessor by your municipality's current (your actual 2018 tax bill is likely to be higher; typically, the actual 2018 rate is not available until after July 1st) tax rate.

2018 AVG.

MUNICIP~LITY RATIO

BERGEN COUNTY Allendale 95.36

Alpine 88.25

Bergenfield 93.66

Bogota 87.97

Carlstadt 68.20

Cliffside Park 86. 15

Closter 96.87

Cresskill 78.48

Demarest 83.26

Dumont 84.33

East Rutherford 90.54

Edgewater 78. 77

Elmwood Park 90.42

Emerson 93.15

Englewood 89.01

Englewood Cliffs 97.3 1

fair Lawn 84.0 l

Fairview 77.02

Fort Lee

Franklin Lakes

Garfield

Glen Rock

Hackensack

Harrington Park

Hasbrouck Heights

Haworth

Hillsdale

HoHoKus

Leonia

Little Feny

Lodi

Lyndhurst

Mahwah

Maywood

Midland Park

Montvale

Moonachie

New Milford

North Arlington

Northvale

Norwood

Oakland

Old Tappan

Oradell

Palisades Park

Paramus

Park Ridge

Ramsey

Ridgefield

Ridgefield Park

Ridgewood

River Edge

River Vale

Rochelle Park

Rockleigh

Rutherford

97.24

94.18

88.76

91.85

92.66

90.22

90.94

85.79

93.09

88.14

87.42

99.82

84.77

80.22

93.95

84.73

86.2 1

89.03

90.92

86.1 1

98.05

88. 15

93.14

87.46

98.50

89.43

80.l l

77.00

88.29

95.24

80.43

87.19

87.48

82.27

100.44

99.88

96.19

90.76

2017* TAX RATE

2.288

0.801

3.222

3.8

1.906

2.392

2.282

2.722

2.484

3.525

2.074

1.8

2.889

2.662

2.641

0.998

3.226

3.26

2.272

1.636

2.791

2.831

3.415

2.802

2.856

2.883

2.755

2.092

2.911

3.34 1

3.242

2.901

1.786

2.994

2.937

2.303

2.411

3.38

2.924

2.736

2.43

2.796

2.005

2.702

1.959

1.801

2.702

2.352

2.324

3.723

2.538

3.362

2.488

2.398

0 .873

2.663

TABLE A

MUNICIPALITY

Saddle Brook

Saddle River

South Hackensack

Teaneck

Tenafly

Teterboro

Upper Saddle River

Waldwick

Wallington

Washington Twp.

Westwood

Woode! i ff Lake

Wood Ridge

Wyckoff

2018 AVG.

RATIO

90.17

93.22

87.64

90.27

87.46

102.50

80.23

98.12

90.41

90.31

93.49

99.39

97.42

101.22

Belleville

Bloomfield

Caldwell

Cedar Grove

East Orange

Essex Fells

Fairfield

Glen Ridge

frvington

Livingston

Maplewood

Millburn

Montclair

ESSEX COUNTY

97.77

88.71

88.91

96.74

82.53

Newark

North Caldwell

Nutley

Orange

Roseland

South Orange Village

Verona

West Caldwell

101.42

90.27

8 1. 18

91.65

89.97

96.04

94.48

78.39

75.45

88.76

87.55

81.32

95.52

96.77

85.15

90.48

West Orange 89.8 1

HUDSON COUNTY Bayonne

East Newark

Guttenberg

Harrison

Hoboken

Jersey City

Kearny

North Bergen

Secaucus

Union City

Weehawken

West New York

36.88

99.8 1

75.40

37.4 1

69. 15

21.88

28.44

41 .90

56.91

38.60

38.83

32.40

MORRIS COUNTY

Boonton (Town) 95.64

Boonton (Township) 94.33

Butler 77.60

2017* TAX RATE

2.578

1.013

2.778

3. 143

2.523

1.138

2.342

2.656

2.915

2.325

2.509

2.092

2.62

1.76

3.877

3.904

2.662

2 .370

5.184

1.906

2. 192

3.607

5.675

2.547

3.049

1.856

3.734

3.560

2.300

3.473

4.870

2.253

3.072

3 .113

2.475

3.986

8.239

2.534

3.675

7.239

1.592

7.800

10.705

5.531

3.614

6.904

5.114

7.494

2.826

2.221

3.515

MUNICIPALITY

Chatham (Borough)

Chatham (Township)

Chester (Borough)

Chester (Township)

Denville

Dover

East Hanover

Florham Park

Hanover

Harding

Jefferson Township

Kinnelon

Lincoln Park

Madison

Mendham (Borough)

Mendham (Twp.)

Mine Hill

Montvi lle

Morris (Township)

Morris Plains

Morristown

Mountain Lakes

Mount Arlington

Mount Olive

Netcong

Parsippany Troy Hills

Passaic (Long Hill)

Pequannock

Randolph

Riverdale

Rockaway (Borough)

Rockaway (Twp.)

Roxbury

Victory Gardens

Washington

Wharton

2018 AVG.

RATIO

82.98

89.22

102.87

95.94

93.07

95.26

76.69

97.0 1

88.17

90.22

95.88

100.08

97.80

87.96

93.29

96.79

99.35

89.28

99.19

92.85

69.80

88.40

90.60

96.37

120.5 1

83.74

93.56

90.09

97.56

82.89

92.53

85.64

61 .. 78

98.58

97.40

98.74

PASSAJC COUNTY

Bloomingdale

Cli1lon

Haledon

Hawthorne

Little falls

North Haledon

Passaic

Paterson

Pompton Lakes

Prospect Park

Ringwood

Totowa

Wanaque

Wayne

West Milford

Woodland Park

86.08

54.93

91.96

51.26

92.51

88.00

86.07

86.93

52.31

87.89

88.49

106.18

87.09

52.79

9 1.95

91.64

SUSSEX COUNTY Hardyston 96.28

Vernon 107.93

2017* TAX

RATE

1.986

1.787

2.587

2.332

2.443

2.460

2.201

1.473

1.757

1.124

2.753

2.490

2.623

1.908

2. 183

2.068

2.564

2.307

1.801

2.221

2.760

2.572

2.559

3.116

2.645

2.818

2.356

2.221

2.530

2.019

2.948

3. 122

4.287

2.509

2.499

2.888

4.214

5.364

4.505

5.751

3.163

2.85

3.487

4. 16

6.954

5.053

3.655

2.359

3.74

5.415

3.703

3.079

2.749

2.621

*The tax rates listed above are for the tax year 2018. The 20 18 rates must be used for making an actual determination. The average ratios were provided by the State of New Jersey, Department of Treasury, Division of Taxation, certification of Average Ratios and Common Level Ranges. In taxing dist ricts where a town wide reassessment or revaluation is implemented for 20 L 8, l 00% should be used and not the ratio listed above.

WORKSHEET FOR DETERMINING WHETHER YOU MIGHT BE ENTITLED TO AT AX REDUCTION

The New Jersey Constitution requires that each municipality in the State assess real estate for tax purposes in accordance with a common standard of value. This requirement is intended to assure that each taxpayer pays only a fair share of municipal, school and county taxes.

The most successful, although not exclusive, basis for an appeal is usually unlawful discrimination. To determine whether there is a possibility of winning a discrimination appeal, complete this worksheet and discuss it with your attorney:

ARE YOU OVER ASSESSED?

(1) What is your assessment? (2) What is the estimated true value of your property?

(Note, you will need a licensed expert to prove this on appeal)

(3) Divide Line (1) by Line (2) and multiply by 100 (4) What is the average ratio for your town (See Table A) (5) Multiply Line ( 4) x 1.15

If Line (5) is less than Line (3) or ifLine (3) exceeds 100, you may be entitled to a reduction. If Line (5) is greater than Line (3) or if Line (3) does not exceed 100, then a successful appeal may be unlikely. If you may be entitled to a reduction, then continue.

HOW MUCH MIGHT YOU SAVE?

(6) What is your assessment [Line (1)]? (7) Multiply the amount on Line (2) by the percentage on Line ( 4) (8) Subtract Line (7) from Line (6) (9) What is the estimated tax rate in your town (See Table A)?

(Note, these are 2017 figures and can only provide a basis to estimate for 2018)

(10) Multiply Line (8) by Line (9) and divide by 100

IS AN APPEAL WORTHWHILE?

If you have an amount on Line (10), you should consult an attorney who can advise you whether the filing fees, appraisal costs and estimated attorney's fees make an appeal worthwhile. Most attorneys will require you to advance the filing fees and appraisal costs. Arrangements for attorney fees for prosecuting tax appeals vary. However, many attorneys accept a percentage of the tax savings realized by the appeal or are compensated on an hourly basis. In any appeal, there is uncertainty as to whether your appraiser 's value or the value placed on the property by the tax assessor will be accepted by the County Board or the Tax Court, so there is always the possibility that you will not get a reduction at all.

THIS WORKSHEET IS INTENDED ONLY AS A GUIDE AND DOES NOT CONSTITUTE LEGAL ADVICE. ONLY BY RETAINING AN ATTORNEY CAN YOU DETERMINE YOUR RIGHT TO TAX RELIEF.

1,

The Benefits of an Appeal and the Freeze Act

A taxpayer who successfully appeals an assessment is entitled to a refund retroactive to January 1, 2018.

A successful tax appeal or settlement may also entitle you, by filing a single appeal, to tax relief for three years. The Freeze Act, N.J.S. 54:5 lA-8, "freezes" the assessment set as a result of the appeal or settlement for the tax year under appeal and two succeeding years.

There are some exceptions:

• Freeze Act relief is not available if, in future years, there is a change in circumstances (such as an addition or other improvement to the property).

• The Freeze Act does not apply in a year in which there has been a municipal wide reassessment or revaluation.

• The Freeze Act may not apply if the property has received certain types of land use approvals or permits.

Free Consultation

To discuss the possibility of filing a 2018 tax appeal, call Andy Del Vecchio at (201) 799-2149. If there is a basis for an appeal, we accept these types of cases on a contingency or an hourly basis. On a contingency basis you pay only a percentage of your tax savings plus costs.

Before making your choice of an attorney, you should give this matter careful thought. The selection of an attorney is an important decision. This newsletter is intended only as a guide and does not constitute legal advice. Only by retaining an attorney can you determine your right to. tax relief

If you believe this newsletter is inaccurate or misleading, you may report same to the Committee on Attorney Advertising, Hughes Justice Complex, CN 037, Trenton, New Jersey 08625.

0£17LO rN 'HV'MH\>'1111 08S ON lll/lll::l3d

GIV'd 38\>'lSOd sn a1s-1s1::1d

6tIZ-66l (IOZ) tno-sti9LO f N '<JIBAlUO:W

ttz xog ·o·d p80lJ a3pra JOU_JS<Jq:_) OS

'"ONV/\OOVd lln 3 111V3S ll