Property Tax Question in NJ, USA?

Question

My taxes were "underestimated" (according to the tax assessor's office) which resulted in an underpayment by me of $2900.00. This tax increase/bill seems a little high for me (especially since I live in a tax-freeze zone as my house is new construction in a "rehabilitated" town - that is they offered special tax incentives to the builder and future owners to build and live there respectively) for only one year.

Does anybody know whether this type of tax increase is unusual, and if so, what should I do about it? I would like to fight the increase, but don't know whether this is a "normal" estimation process in NJ. Any insight into this problem would be great. Thanks in advance.

Answer 1

The initial taxes on a new house are pretty much a guess, and while that's really a long way off the accurate amount, it's probably not totally unusual. You could check at the assessor's office (or website if they have the info online) on what the assessment is on comparable houses if you can find some - if it seems to be far out of line with them, you can appeal the assessment.

But if there's a one year tax abatement, I'm not sure why you'd be paying at all, unless the abatement is just for some of the taxes. Where I live there are county, township and school real estate taxes, and for some new homes there is an abatement for the school part. Is it possible yours is like that, and it's just for some of the taxes? But if that's the case, you'll really have an ugly bill after the abatement expires. You should be able to get that info from the assessor. It's also possible that there needs to be paperwork for the abatement to take effect, and the paperwork didn't catch up with your tax bill.

Good luck.

Answer 2

You can appeal and it will be reduced.

Tip-If they schedule a hearing, be sure to dress DOWN. Don't look like you have money.