Will property tax be reassessed when I purchase a home?

Asked by Ihaveaquestion, Fanwood, NJ Fri Mar 30, 2012

First time homebuyer here - I'm looking to buy a house in the area, and I've noticed that some of them are assessed much higher than their actual current value. I suppose this is not surprising given the market conditions.

I've looked up the ratios and done the calculations, and I understand that you can appeal a tax assessment if it's off by more than 15% (which appears to be the case for some of the listings I've seen). How likely is it to successfully appeal the assessment if the purchase price of the home is, say, 30% less than the current assessed value?

I also understand that normally there is a deadline of April 1 to appeal a tax assessment. So does that mean if I buy a house in May, I'm stuck with the higher tax assessment until 2013? Or can I have the house reassessed at the time of the purchase, thereby reducing my tax bill for the portion of 2012 in which I'll own the home? Thanks!

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Stephen Robe…, Other Pro, Martinsville, NJ
Sat Mar 31, 2012
Wait till the next tax cycle. Than appeal.
0 votes
Kenneth Verb…, Agent, PRINCETON, NJ
Fri Mar 30, 2012
Buying after the April 1 date will mean yes your appeal would be for following year. In addition the 15% factor is only if homes are under assessed. If your home is worth less than its assessed value there is no fudge factor. appeal success depends pon your comps used
0 votes
Thank you for your quick response.

I'm confused by your assertion that the 15% factor only applies to homes that are under assessed. I found the applicable ratios for 2012 here: http://www.state.nj.us/treasury/taxation/pdf/lpt/chap123/2012/chap123uni.pdf and it appears that there is a 15% margin both ways. So are you saying that I can try to appeal for a tax reduction if the value of my home is only 5% less than the assessed value?

Thanks for verifying that I could only appeal for next year, since I'll be purchasing after April 1. Could I still file the appeal now for my 2013 taxes (and use current comps) or do I have to wait until after January 1, 2013 or something and use the comps that are available at that time? In other words, if I think that comparable home prices are going to rise throughout 2012, would it be advantageous to try to appeal next year's taxes now so that the comps I'm using are presumably lower than what they'll be 9-12 months from now?

Thanks again!
Flag Fri Mar 30, 2012
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