How to report property tax fraud?

Asked by Searching, Lyndhurst, NJ Sun Sep 30, 2012

My neighbor rented the first floor of their single family home and has a tenant renting on the second floor and also rents their garage to someone that does constructions in there. I know they pay the same taxes as I on a single family home. They do not reside there. Who can I report this too? It is not fair to all of us tax payers.

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Alex Kushnir’s answer
Alex Kushnir, Agent, Monmouth, IL
Sun Sep 30, 2012
Note: This is not a legal advise.

How is this a property tax fraud? It is your neighbor property and s/he is can do anything with it. If you feel that your neighbor is not allowed to rent, due to local zoning laws, you should talk to the township's zoning department. If you feel your neighbor is renting it, but does not report rental income, you can call IRS. I don't see how any of it relates to property tax.
1 vote
It relates because your property tax doubles if you use your property as rental.
Flag Mon Apr 10, 2017
Searching, Home Buyer, Lyndhurst, NJ
Sun Sep 30, 2012
Thank you all for your suggestions. I would believe that a multi-family home that uses their property as a source of income would have to pay a higher property tax to the town. I will be visiting the board office to voice my concern. I'll keep everyone posted on my findings.
1 vote
Look up her property tax information. I bet she is getting a property tax exemption that is only valid if it is owner occupied. That information should be readily available to you.
Flag Fri Aug 28, 2015
Pj200016, Home Buyer, Redford, MI
Wed Jun 15, 2016
The local building department here in Redford michigan don't care. There's 7 grown men and 1 women living in a 2 bedroom 1 bath house on Riverview, that are some of the nastiest degenerates on the planet housing rats larger than squirrels. The township says it's ok they own the property. Don't move to Redford, it's worse than Detroit.
0 votes
Mary Petti, Agent, Edison, NJ
Tue Oct 2, 2012
Searching,

This is NOT legal advise.....

Property taxes are based on total assessed value (building and land) times the current tax rate. I highly doubt that the taxes would be higher if it's a two family home since the value of the building and the land is based on size not number of families. However I do understand your concern that if there are more children in the home that attend public schools, the owner is only paying taxes as if it were a one family with the standard 2.5 children.

The bigger problem is if it's not a legal multi-family, the owner MAY be in violation of local zoning ordinances and fire codes.

Renting a single family home to ONE family is typically allowed. Renting to several families is usually not. Renting your garage (NOT as living space however) is usually allowed too.

I suggest you voice your concerns first to the zoning officer and fire inspector in your township and let them investigate further.
0 votes
Maria FORSBE…, Agent, FORT LEE, NJ
Sun Sep 30, 2012
Well this seems to be an issue for the town and I would suggest you speak to the town code officials and inspectors from the building department. You can also approach your neighbor and speak to them directly to avoid the town getting involved. If the owner is renting out the property it may be the tenant who is doing all this subleasing and the owner may not even be aware of what is going on. Good luck!
0 votes
Andrew Tisel…, Agent, Clifton, NJ
Sun Sep 30, 2012
your local building department will be happy to hear from you
0 votes
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