An Act authorizing counties to participate in certain property tax appeals and amending R.S.54:3-21.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. R.S.54:3-21 is amended to read as follows:

54:3-21. a. Except as provided in subsection b. of this section a taxpayer feeling aggrieved by the assessed valuation of the taxpayer's property, or feeling discriminated against by the assessed valuation of other property in the county, or a taxing district which may feel discriminated against by the assessed valuation of property in the taxing district, or by the assessed valuation of property in another taxing district in the county, may on or before April 1, or 45 days from the date the bulk mailing of notification of assessment is completed in the taxing district, whichever is later, appeal to the county board of taxation by filing with it a petition of appeal; provided, however, that any such taxpayer or taxing district may on or before April 1, or 45 days from the date the bulk mailing of notification of assessment is completed in the taxing district, whichever is later, file a complaint directly with the Tax Court, if the assessed valuation of the property subject to the appeal exceeds $750,000.00. Whenever a taxpayer files a petition of appeal or a complaint concerning the assessment of property constituting a single economic entity that has been assessed at more than $10 million in the aggregate, the taxpayer shall serve notice of the filing by regular and certified mail, return receipt requested, to the county by serving notice on the county counsel. The county shall be permitted to intervene in the proceeding within 180 days after being served with the notice. Following that initial 180 day period, intervention by the county shall only be permitted upon the showing of good cause by the county, and the good cause for intervention shall be supported by affidavits or certifications. In a taxing district where a municipal-wide revaluation or municipal-wide reassessment has been implemented, a taxpayer or a taxing district may appeal before or on May 1 to the county board of taxation by filing with it a petition of appeal or, if the assessed valuation of the property subject to the appeal exceeds $750,000, by filing a complaint directly with the State Tax Court. Within ten days of the completion of the bulk mailing of notification of assessment, the assessor of the taxing district shall file with the county board of taxation a certification setting forth the date on which the bulk mailing was completed. If a county board of taxation completes the bulk mailing of notification of assessment, the tax administrator of the county board of taxation shall within ten days of the completion of the bulk mailing prepare and keep on file a certification setting forth the date on which the bulk mailing was completed. A taxpayer shall have 45 days to file an appeal upon the issuance of a notification of a change in assessment. An appeal to the Tax Court by one party in a case in which the Tax Court has jurisdiction shall establish jurisdiction over the entire matter in the Tax Court. All appeals to the Tax Court hereunder shall be in accordance with the provisions of the State Uniform Tax Procedure Law, R.S.54:48-1 et seq.

If a petition of appeal or a complaint is filed on April 1 or during the 19 days next preceding April 1, a taxpayer or a taxing district shall have 20 days from the date of service of the petition or complaint to file a cross-petition of appeal with a county board of taxation or a counterclaim with the Tax Court, as appropriate.

b. No taxpayer or taxing district shall be entitled to appeal either an assessment or an exemption or both that is based on a financial agreement subject to the provisions of the "Long Term Tax Exemption Law" under the appeals process set forth in subsection a. of this section.

c. Neither the Tax Court nor the county board of taxation shall enter a judgment pursuant to a stipulation of settlement in a tax appeal matter which results in a reduction in excess of $5 million of the aggregate assessment of the property or properties that are the subject of the appeal, unless the proposed stipulation of settlement contains a written, detailed explanation of the method by which that assessment was calculated.

d. For the purposes of subsections a. and c. of this section, separate assessed parcels of real property which constitute a single economic entity shall be aggregated for valuation and assessment purposes.

(cf: P.L.2007, c.256, s.1)

2. This act shall take effect immediately.

STATEMENT

This bill would authorize the involvement of county governing bodies in property assessment appeals with respect to properties assessed at more than $10 million. The bill provides that, whenever a taxpayer files a petition of appeal with the county tax board or a complaint with the Tax Court concerning the assessment of property constituting a single economic entity that has been assessed at more than $10 million in the aggregate, the taxpayer must provide notice of a filing by regular and certified mail to the county by serving notice on the county counsel. The bill permits the county to intervene in the proceeding within 180 days after being served with the notice. Following that initial 180 day period, intervention by the county would only be permitted upon the showing of good cause by the county, and the good cause for intervention must be supported by affidavits or certifications.

The bill also requires that neither the Tax Court nor the county board of taxation shall enter a judgment pursuant to a stipulation of settlement in a tax appeal matter which results in a reduction in excess of $5 million of the aggregate assessment of the property or properties that are the subject of the appeal, unless the proposed stipulation of settlement contains a written, detailed explanation of the method by which that assessment was calculated.

The purpose of this bill is to give the county governing body input into, and control over, the settlement of large tax appeals that have substantial impact on county taxpayers. The provisions of this bill would provide an important benefit to county property taxpayers, because county governments are responsible for a portion of any property taxes required to be refunded to a taxpayer who is successful in a property tax appeal. With respect to appeals of assessments on large or valuable properties, those refunds can oftentimes be significant in size, and for that reason, oftentimes are the subject of negotiations between the municipality in which the property is located and the taxpayer. The provisions of this bill would provide county governing bodies with "a seat at the table" and allow them to participate in the tax appeal action and settlement negotiations with the taxpayer, and to seek a resolution of an appeal that would not overburden the county's property taxpayers.