BLOG: Property Tax Appeal
Two Different Taxpayers Prove Value and Score at Trial
Two recent Tax Court valuation trials have resulted in favorable outcomes for the taxpayer. First, in the trial of 416 Route 10 Associates v. East Hanover, plaintiff’s expert deliberately made no adjustments to his comparable leases in the expert’s income approach. Plaintiff’s expert reasoned that numerical adjustments simply led to more rigorous cross-examination so the... Read More
When it Comes to Farmland Exemption, You Can’t Have it Both Ways
The Tax Court recently issued its opinion following trial in Sam. S. Russo v. Twp. of Plumsted. The central issue at trial was whether plaintiff’s property met the statutory requirements for farmland assessment for tax year 2012. In addition to income and acreage requirements, agricultural or horticultural use must be the dominant use of the... Read More
Stick to the Cost Approach When Valuing Nursing Homes
In two recent decisions, the Tax Court addressed the proper valuation methodology in determining the market value of nursing/rehabilitation facilities. In 962 River Ave., LLC v. Twp. of Lakewood, the property at issue was a 126-unit, 242-bed, skilled nursing facility that provides short-term rehabilitation services, long-term care, and specialty services for Huntington Disease. Plaintiff filed a... Read More
Tax Court Disagrees with Board’s Dismissal, Denies Motion to Dismiss and Preserves Appeal
Under N.J.S.A. 54:51A-1(c), the Tax Court is precluded from reviewing an appeal from the county board of taxation if the appeal to the board was either (1) withdrawn; (2) settled; (3) or dismissed for lack of prosecution. Non-appearance by a taxpayer at a county board hearing will constitute as a failure to prosecute the appeal,... Read More
Township Ordered to Refund Property Owner that Paid Taxes by Mistake
The Correction of Errors statute, N.J.S.A. 54:4-54, provides relief where a taxpayer has mistakenly paid the property taxes of another. Under this statute, in Hanover Floral Co. v. East Hanover Twp., the plaintiff sought a refund of property taxes paid by mistake of property that was not their own. By mistake of the Township’s Tax... Read More
Flawed Highest and Best Use Determination Cripples Taxpayer’s Case
A valuation trial of a retail bank branch was recently heard before the Tax Court. Beneficial Mutual Savings Bank v. Twp. of Mount Laurel involved a one-story retail bank branch that is owner-occupied. The history of the subject property was relevant to plaintiff’s valuation analysis. Approximately 20 years ago, Rt. 38 was widened from four lanes... Read More
Testimony on Reasonable Probability of Zoning Change Not Limited to Real Estate Appraisers
In a recent dispute before the Tax Court, the court addressed the issue of whether only a real estate appraiser may offer testimony as to the reasonable probability of a change in zoning of the subject property as of the relevant valuation dates. In Ciba Specialty Chemicals Corp. v. Twp. of Toms River, the taxpayer... Read More
Denial of Veteran’s Tax Exemption Upheld on Appeal
On or about March 21, 2016, the Tax Court issued a ruling in Fisher v. Millville which addressed a taxpayer’s application for disabled veteran’s property tax exemption pursuant to N.J.S.A. 54:4-3.30. The issue in the case was whether plaintiff’s disability satisfied the statutory criteria for a veteran’s property tax exemption. The Tax Court denied plaintiff’s application for an... Read More
Even in Bankruptcy, Prior Owner’s Failure to Respond to Ch. 91 Request Not Excused
The Tax Court once again dismissed an appeal for taxpayer’s failure to provide income and expense information pursuant to the municipality’s Ch. 91 request. In 975 Holdings, LLC v. Egg Harbor City, the prior owner of the subject property had filed for bankruptcy under Chapter 11 and plaintiff acquired the subject property in a bankruptcy... Read More
Omitted Assessment Tossed — “Error” in Setting Value Not an Erroneous Omission
New Jersey’s omitted assessment law allows a municipal tax assessor to go back one year in the event an assessment on a property was inadvertently omitted from the tax rolls (Yes, it does happen. I once had a client that owned an office building that was assessed at over $4 million for which the assessment was simply... Read More
