She consistently assigned the NU 26 tag to any sales in which she observed a “distorted sales to assessment ratio.” There was, in fact, no evidence that many of the transactions were not arms-length or market value sales. She had, however, apparently misunderstood the nature of the task. The problem started in 2001 with an error by an assistant to the assessor, who was charged with the responsibility of categorizing sales. After careful review by the attorney for the taxpayers, it was observed that several of the property sales in town were erroneously tagged as “non-usable sales” by the tax assessor’s office. The problem was that, based upon the equalization ratio that Monroe had calculated, the properties were not over-assessed. Recently, the equalization ratio in the town of Monroe, in Middlesex County became the subject of a claim by several property owners who wanted to appeal their assessments. This category, known as “NU 26,” has been the subject of much debate due to its potential for abuse by an assessor who often cannot substantiate the reason for exclusion of a sale. Also included in the category of non-usable sales is a “catch all” category of sales that the assessor does not believe to be arms-length transactions. These sales are known as “ non-usable sales” and include foreclosures, short sales, properties that have been damaged by fire or flood, sales between family members and several other categories of sales that very often do not represent true market value. Some sales are immediately removed from the assessor’s computation. In all New Jersey municipalities in which the equalization ratio has been applied, the assessor must estimate the ratio of assessed values to actual values. In this article, we will examine a rather unique case in which the taxpayers of a town did not challenge their assessments, but rather the equalization ratio upon which their assessments were based. Properties owners who are overassessed are entitled to appeal their taxes not only when the assessments exceed the fair market values for their properties, but also in cases when the equalized assessments exceed the property values by more than 15%. As property values increase in the years following a revaluation, the assessments do not change, but rather, the tax rate is simply increased to ensure that the rapidly increasing municipal budgets remain balanced. Following a revaluation or re-assessment, a municipality will typically start with an equalization ratio of 100%. However, for the majority of New Jersey municipalities, in which properties are not assessed at 100% of true value, the use of an equalization ratio is necessary to ensure that county contributions are uniformly applied, even in cases where neighboring municipalities have assessed their properties at different ratios. This directive, which has become known as the uniformity clause, mandates that all real estate within a municipality is assessed according to the same standard of value and taxed at the same tax rate. However, though Statutory scheme is to free the Assessor from local control in levying assessments, the Assessor, nevertheless, is subject to compliance with certain local requirements, and is further subject to supervision at both the County and State levels of Government.įrom the Handbook for New Jersey Assessors.Article VIII of the New Jersey State Constitution regulates revenues raised through real estate property taxes. The intent is that in determining taxability of property and valuing property for taxation, Assessors, like Judges should be free to perform their duties without fear of local retaliation and should, to the greatest extent possible, be immune from undue pressure and harassment. In the discharge of these duties the Assessor is not subject to local control in carrying out his Magisterial functions. In determining the taxability of property and in assessing property, the position of’ Assessor takes on a Judicial quality. When assessing property for taxation, the Assessor performs a governmental function in which he has been described as acting as an agent of the Legislature. Their duties are imposed by State Law and clearly defined in State Statutes. Assessors, though they are chosen and appointed by Municipal Officials are nevertheless Public Officers in the broadest sense. The Municipal Assessor occupies a unique position within the framework of local government. He also administers all State Deduction and Exemptions for Real Property. The Municipal Assessor is responsible for defending Assessments before the Ocean County Board of Taxation or the New Jersey Tax court as required. To maintain the records of the 21,000 parcels within the Township accurately and ensure that the value is proper so that each taxpayer pays no more than his fair share of taxes. The Municipal Assessor’s Office is responsible for discovery, listing and valuing all taxable property.
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