New Jersey Senate Bill S1117

New Jersey 2022-2023 Regular Session

• Introduced: 1/31/22
• Refer: 1/31/22

Caption

Limits increase of assessed value of property subject to appeal judgment following implementation of reassessment.

Impact

If enacted, S1117 is set to significantly affect the way property tax assessments are handled in New Jersey. The legislation aims to provide a more structured approach for taxing districts that are conducting broad property reassessments, limiting increases based on the overall market changes in taxable property values in the district. This amendment is expected to protect taxpayers from potential spikes in property tax burdens resulting from evaluations that may not accurately reflect market conditions. By establishing a clearer framework, the bill seeks to enhance fairness and transparency within the property assessment process.

Summary

Bill S1117, introduced in the New Jersey legislature, focuses on property tax assessment appeals. The bill proposes to modify existing laws related to the freezing of appeal judgments for property tax assessments in districts undergoing reassessment. Specifically, it limits the increase allowed for property assessments that have been appealed, ensuring that any increase in assessed value following a judgment is tied to the year-over-year growth of the district's net taxable property valuation. The intent behind this change is to ensure that reassessments do not lead to disproportional tax increases that undermine the principles of fair valuation as established in earlier appeal judgments.

Contention

There have been concerns regarding the potential consequences of S1117. Supporters argue that the bill would prevent arbitrary increases in property assessments that could financially burden homeowners and businesses in affected districts, thereby fostering a more equitable taxation system. Conversely, opponents may argue that this limitation could hinder the ability of taxing districts to adjust to changing market conditions adequately, potentially leading to funding shortfalls for local governments that rely on accurate property valuations to support public services. The balance between protecting taxpayers and ensuring adequate revenue for essential services remains a focal point of debate surrounding this legislation.