Let’s face it. No one likes to pay taxes, and if there is a way to reduce them you should make the effort to do so. The first step in reducing your home’s taxes is to go to the tax assessor’s office in your municipality. It is usually in the same building as your City Hall. When you go there ask for a copy of the Data Sheet for your house. This contains every detail of your property. Check it thoroughly to make sure there are no mistakes. Data sheets may include a garage, when the property has no garage, a powder room listed as a full bathroom, a finished basement listed when the house has an unfinished cellar. If you find any mistakes you should let the assessor know about it and set up an appointment for an inspection to check out the discrepancy. If a mistake is acknowledged, you should get a reduction in your assessment. Remember, you are not challenging the actual taxes, but the assessed value of your house.
If the data sheet is correct, the next step is to find comparable sales to justify why you think your assessment is too high. If you have a friend in real estate, ask for him/her to supply you with homes that have sold the previous year that are comparable to yours. [You can also find a listing of homes sold in your area at your local assessor’s office.] The homes that closed on or before October 1st of the previous year are considered the best “comparables.”
When you review the assessed values of the comparables, make sure that the homes have the same amount of bedrooms, bathrooms, and similar lot sizes. If you observe that similar homes sold for less than your home’s assessment, you should prepare for the next step. If you find that similar homes sold for more than your assessment, you should forget about the appeal.
Once you have clear data that supports your premise that your home is over-assessed, contact the County Board of Taxation in Hackensack [or go the office]. Ask them to send you the tax appeal forms [or fill them out there; there is a small fee involved]. You may also be able to get the forms on-line. Fill out all the pertinent information about your home and send them to the appropriate offices: one goes to the County Board of Taxation, one to the City Clerk of your municipality, and one to the tax assessor of your municipality. The deadline for filing the appeal is April 1st. Send the forms Certified with a Return Receipt Requested, so that you have proof that you filed within the guidelines.
Your town may then set up an appointment for you to come to the tax assessor’s office to discuss your appeal. If you are offered a reduction in your assessment that you are comfortable with, accept it. If you are offered a pittance compared to what you think it should be, don’t be intimidated; take your case to court.
Eventually, you will receive a letter from the appraisal company that represents your town. It will supply you with the comparables that it will be using to challenge your appeal. Check those properties carefully; they are usually higher than the ones you submitted. Be familiar with them and take notes on the differences in those properties as compared to yours. You will then get a date from the court that schedules the appeal.
When you go to the appeals court remember that you know your property better than anyone there, so don’t be afraid to speak up. If your house is on a busy street and one of the comparables the appraisal company is using is on a cul-de sac, make sure you bring that to the attention of the commissioner presiding at the appeal. Most of the time the commissioner will thank you and tell you that you will be notified by mail of his decision; rarely will he give you a sizeable reduction right then and there. When you get the decision you may be pleasantly surprised that you succeeded. If you are not happy with the decision, you can always appeal the decision in Trenton.
Good Luck.
By Martha (Malkie) Aaron
