NJ Property Tax Appeal for Commercial Property Owners

Commercial property owners in the State of New Jersey are very often over assessed with regard to commercial property.

Arcane methods and defensive tactics employed by many local tax assessors and county tax boards discourage property owners who seek tax relief.

Property Tax Relief for Commercial Property Owners in NJ

Commercial Property, industrial property and income producing properties tend to be more frequently over assessed due to the political benefit of shifting the tax burden to non-residents.

Procedure for reviewing income producing properties is different than the residential process because the emphasis is on net income production rather than comparable sales.

Owners of income producing properties should consider review of their assessed value each year if there has been any change in the economy or income and expense production

Just a few years ago prime investment property was selling based upon eight percent (8%) capitalization. Today the same property would be viewed at about nine and a half percent (91/2%) capitalization. That difference alone accounts for a substantial value reduction.

The Fair Market Rental Value (FMRV) of your property may have dropped due to the economy. Some Landlords have experienced a higher vacancy factor or have been forced to lower rent to reduce vacancy. This condition directly impacts the value of your property and should be considered in determining if a tax appeal is warranted.

Chapter 91- NJSA54:4-34 (referred to as chapter 91) requires every owner of real property of the taxing district, upon written request of the tax assessor, made by certified mail to provide property information, (usually income and expense) within forty five (45) days. The tax payer may risk an appeal dismissal for failure to provide this information. The statute clearly states that the County Tax Board or New Jersey Tax Court are prohibited from hearing a tax appeal, if the property owner refuses or fails to respond to a chapter 91 request.

Call us at 201-488-8878 to find out more information about Commercial Property Tax Assessment appeal