Appealing Your Taxes on Long Beach Island New Jersey LBI NJ
Tax Appeals on Long Beach Island NJ
A tax appeal is an option exercised by a homeowner to request a review of how much they must pay in property tax. The process very involved and usually should be handled by an attorney experienced in local tax laws. Tax Appeals in the LBI NJ Real Estate Market are no exception and should be handled by professionals, however this information may help answer a few basic questions!
Getting Started with Tax Appeals in the LBI NJ Real Estate Market
The Long Beach Island NJ area is under the jurisdiction of Ocean County and it is here where your appeal will begin. The Ocean County tax office has prepared a document to help you understand what the process involves and a full breakdown of what is required. A few of the basic things to remember are:
- A separate appeal must be filed for each property
- A filing fee is associated with the process
- The general goal is to prove that the “true cash value” of your property is less than what the current assessment shows.
- A legal hearing may be required
What is the Assessment Based On?
A property assessment is an opinion of value determined by a professional. In order to win your tax appeal, you must prove that the current assessment is overly excessive. The fair market value is based partly on an equation developed in 1973. The following example is from the Ocean County Tax Appeal Booklet:
If the ratio of assessed value to true value exceeds the average ratio by 15%, the assessment is reduced to the common level.
Example
Director’s Ratio = 85%
Common Level Range = 72.25%-97.75%
True Value = $95000
Assessment = $94000
Ratio = 98.95% ($94000/$95000)
Judgment = Reduction in assessed value
New Assessment = $80750 ($95000 x 85%)
However, if the assessment falls within this common level range, no adjustment is made.
Example
Director’s Ratio = 85%
Common Level Range = 72.25%-97.75%
True Value = $95000
Assessment = $90000
Ratio = 94.74% ($90000/$95000)
Judgment = No change in assessed value
If the assessed value to true value ratio falls below the common level, the Tax Board must increase the assessment to the common level.
Example
Director’s Ratio = 85%
Common Level Range = 72.25%-97.75%
True Value = $95000
Assessment = $67000
Ratio = 70.53% ($67000/$95000)
Judgment = Increase in assessed value
New Assessment = $80750 ($95000 x 85%)
How to Appeal Taxes in the LBI Real Estate Market
Tax Appeals in the LBI NJ Real Estate Market are a complicated process that truly requires the assistance of a licensed professional. Keep in mind that the above is a very short overview of what is required. There are many firms and attorneys that have experience in this matter. For more information, please contact me and I can provide a list of attorneys who deal with Tax Appeals in the LBI NJ Real Estate Market.
Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
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