New Jersey property owners share a common challenge: high property taxes. However, there’s a glimmer of hope because property owners can appeal their assessments and potentially reduce their property taxes. While many hire attorneys to represent them through the tax appeal process, some choose to file without representation. What are the pros and cons of self-filing, and how can hiring an experienced property tax attorney help? Read on to find out!

Overview

Property tax appeals involve court proceedings, exchanging documents with opposing counsel, and preparing for trial. Regardless of whether appealers represent themselves or if they are represented by counsel, the rules apply just the same. Tax court judges won’t extend deadlines or give special treatment to self-represented litigants. Moreover, townships and municipalities have experienced property tax attorneys on their side. Going up against these attorneys can be intimidating, especially for inexperienced tax appealers. We break down the key differences with filing appeals with and without attorney representation and the value attorneys bring to the table.

To Appeal or Not to Appeal?

The first question a property owner should ask is whether to file an appeal. Many property owners miss out on the benefit of appealing their property taxes. One study from realtor.com found that nearly half of all property owners could reduce their tax burden by appealing their assessments. In light of this, many property owners could save hundreds if not thousands of dollars by filing tax appeals.

When deciding whether to pursue an appeal, property owners should first determine whether their property is over-assessed. A property is over-assessed when its true value, or fair market value, is less than the assessed value. The law recognizes that tax assessors can’t get it right 100% of the time, so many townships are given a cushion. In other words, even if a property is over-assessed, it may not cross the threshold necessary to win an appeal.

So, how can property owners find out whether they are over-assessed? Thanks to the internet, finding information has never been easier. For instance, realtor.com launched a tool where property owners can enter their addresses to see if they could potentially pay less in property taxes. Although online resources can be helpful, they shouldn’t be exclusively relied upon as the information must be verified and may not be accurate or complete.

Self-Representation vs. Attorney Representation

Once a property owner decides to file an appeal, what next? Should they hire an attorney or lone wolf it?

In New Jersey, individual owners of residential properties can file property tax appeals without attorney representation. Corporate entities require counsel.  Although self-representation has certain advantages, its disadvantages should not be overlooked. Below are the pros and cons of filing without attorney representation:

Pros of Self-Filing:

Cost Savings: Self-represented property owners save money by not hiring counsel.

Control Over Case: The property owner has full control over arguments and evidence.

Learning Experience: Going through the tax appeal process will provide experience for future appeals.

Cons of Self-Filing:

Time: Property tax appeals are not like overnight oats: you can’t file an appeal and expect a reduced assessment the very next day. The process can take from several months to years. If you are committed to a tax appeal, be prepared to put in the time and effort of proving your case.

Learning the Rules: There is a reason why many self-represented appealers fail at reducing their assessments — they don’t read the rules! Reading and understanding these rules can be an arduous process, but they are essential to winning appeals.

Risk of Mistakes: There are many ways an appeal can fail. Without expert guidance, property owners may overlook important factors or make decisions that impede their chances of winning.

How Hiring an Experienced Property Tax Attorney Can Help

Although there are advantages to self-representation, the complexity of the process (not to mention the stress) can be a huge burden on property owners. Here are a few areas in which property tax attorneys can provide significant advantages:

Knowing When There’s a Case

Experienced property tax attorneys know whether a potential appeal is likely to succeed. They gather facts and analyze market data to determine whether a property is over-assessed. This ensures that no time is wasted and minimizes the risk of an increased assessment.

Handling the Discovery Process

Discovery is an essential part of the tax appeal process. When an appeal is filed, the government will request answers to interrogatories. Given the complex nature of discovery rules, inexperienced tax appealers are often left wondering whether and how to answer these interrogatories. Property tax attorneys handle the discovery process, so property owners have one less thing to worry about.

Negotiation

The vast majority of property tax appeal cases settle before they ever reach the bench. That is why successful appeals require strong negotiation skills. Experienced property tax attorneys are expert negotiators – they know exactly what to say to achieve maximum tax savings for their clients.

Deadlines

Nobody likes the word deadline, even attorneys! Yet, deadlines are ever present in tax appeals. Deadlines on filing, responding to opposing counsel, and providing status updates are only a few examples of time-sensitive aspects of the process. For the busy property owner, managing these deadlines can be overwhelming. Experienced property tax attorneys are diligent about deadlines, giving clients peace of mind.

Advocation

Winning an appeal requires, above all else, effective advocation skills. As masters of the trade, attorneys have the knowledge and skills to zealously represent your best interests.

Conclusion

Property owners interested in filing tax appeals should weigh the pros and cons of self-representation. Although it contains benefits, it also has risks that should not be overlooked. Property tax attorneys bring knowledge and expertise in a complicated area of the law and can be an invaluable asset to those seeking reduced assessments.  If you are considering an appeal and are interested in speaking with an attorney experienced in handling property tax appeals, please reach out to us at info@mrod.law, or at 973-539-8900.