New Jersey Assembly Bill A1637

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Requires Director of Division of Taxation to include sales of properties in age-restricted developments by third parties in table of equalized valuations.

Impact

The inclusion of these sales in the equalization process is significant as it will likely result in more accurate property valuations in age-restricted communities, which predominantly serve senior citizens. By amending existing valuation standards, the bill aims to relieve the unfair burden that has historically been placed on residents who are often reliant on third parties such as guardians or executors to manage their property sales. The change could help ensure that property assessments reflect real market conditions more accurately, potentially leading to fairer taxation.

Summary

Assembly Bill A1637 aims to amend the process for establishing local tax assessments by requiring the Director of the Division of Taxation to include sales of properties in age-restricted developments that are conducted by third parties in the table of equalized valuations. Currently, these sales are typically excluded from consideration because they are not classified as 'arms-length transfers' and thus are not deemed reliable indicators of true market value. The bill seeks to address this gap by recognizing the unique circumstances under which many senior citizens sell their properties.

Contention

While the bill has clear intentions to benefit senior citizens, it may still face opposition due to concerns about the potential for market distortions and the need for rigorous definitions of what constitutes a legitimate market transaction. Critics could argue that including sales considered as non-arms-length might muddy the waters, making it hard to establish consistent valuation benchmarks across taxing districts. Support and opposition will likely hinge on discussions about balancing fair taxation with the necessity for precise market evaluation standards.