New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 12 - LOCAL PROPERTY TAX: GENERAL › Subchapter 4 - REVALUATION OF REAL PROPERTY BY APPRAISAL FIRMS › Section 18:12-4.8 - Standards for revaluation

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Any firm engaged in
				the revaluation of all of the real property in a municipality shall comply with the
				standards and conditions set forth in this subchapter. The revaluation firm acts as
				the agent of the assessor and all determinations made by the firm shall be submitted
				to, and approved by, the assessor.
1. Real
				property shall be valued in accordance with
				54:4-1 et seq.
2. With regard to real property being constructed
				or altered, the firm shall determine the percentage of completion and the appraised
				value of said property as of October 1 of the pre-tax year.
3. A separate list of exempt properties shall be
				provided indicating the values of said properties as if taxable.
4. Land qualified under the Farmland Assessment
				Act of 1964, 54:4-23.1 et seq., shall be valued in
				accordance with its qualified farmland value and its highest best use
				value.
5. In determining taxable values
				of all real property, the firm shall employ the three approaches to value where
				applicable. The capitalization procedure shall be included with the property record
				card and reconciled with the other approaches to value.
6. To facilitate the use of the approaches to
				value, the most recent edition of the Real Property Appraisal Manual for New Jersey
				Assessors shall be used for residential properties.
7. The firm shall include real property
				identification material on properly labeled individual property record cards similar
				in form and content to those illustrated in the Real Property Appraisal Manual.
				Distinct property record cards for each of the four classifications of real property
				shall be provided.
8. The real property
				identification material to be entered on property record cards shall include, but
				not necessarily be limited to, the following:
i. A
				scaled sketch of the exterior building dimensions;
ii. Notations of significant building components
				as ascertained from both an interior and exterior inspection;
iii. Entries on the property record cards
				respecting the values of each lot and building including such items as age,
				construction, condition, depreciation, obsolescence, additions and deductions,
				appraised value, recent sales prices, rental data, and other pertinent information
				pertaining to the valuation of the property;
iv. Where more than one property card is required
				in the description of a property, all cards shall be assembled in a standard file
				folder and properly labeled;
v. Each
				property record card shall identify the individual making the inspection and set
				forth the date when the interior inspection was made; and
vi. Digital photograph(s) of each individual
				property in the municipality.
9. The inspection of each property shall be
				performed in the following manner:
i. No less than
				three attempts shall be made to gain entry to each property;
ii. If successful entry has not been made after
				the first attempt, a card shall be left at the property indicating a date when a
				second attempt to gain entry will be made;
iii. The card shall include a phone number and
				address to permit the property owner to contact the firm to make other arrangements,
				if necessary;
iv. If entry is not
				possible upon the second visit, written notice shall be left advising that an
				assessment will be estimated unless a mutually convenient arrangement is made for a
				third visit to gain access to the property;
v. The firm shall schedule inspections during
				reasonable hours which shall include evenings and Saturdays; and
vi. The assessor shall be notified in writing of
				each failure to gain entry to a property and a list of all non-entries and reasons
				for same shall be provided to the assessor prior to the mailing of values.
10. Every contract shall include the
				following items representing progress and control of operations:
i. A commencement date and a completion date, the
				latter not later than November 1. Assessment notices shall not be sent prior to
				November 10. Taxpayer's reviews shall be completed not later than December
				15;
ii. A requirement providing for the
				submission to the assessor of a work schedule or plan of operations;
iii. The firm shall provide written monthly
				progress reports to the assessor for review. The assessor shall forward the reports
				to the county board of taxation. If the county board of taxation does not receive
				the required monthly progress report, it must notify in writing the Director of the
				Division of Taxation immediately;
iv.
				Each progress report shall indicate the status or work progress which shall serve as
				a basis for proportional payments by the municipality. In no event shall more than
				90 percent of the total contract price be billed until full completion and
				performance of the contract, except any requirements for defense of tax appeals.
				Furthermore, if the character or progress of the work is not satisfactory to the
				county board of taxation after two consecutive months, the county board shall also
				notify the Director of the Division of Taxation in writing of such lack of
				satisfactory progress as soon as possible; and
v. Any change in personnel shall be submitted in
				writing to the assessor and county board of taxation.
11. A provision committing the firm to conduct
				and/or assist the municipality in a program of taxpayer orientation and education
				regarding the revaluation program including, but not necessarily limited to, the
				following:
i. Press releases describing the
				purpose and nature of the revaluation program;
ii. Meetings with public groups in the community;
				and
iii. Mailings approved by the
				assessor, at the firm's expense to all property owners explaining the nature and
				purpose of the revaluation and setting forth a proposed date for the commencement of
				inspections in the municipality.
12. The firm shall provide its representatives
				with photographic identification cards.
13. Following the formulation of land valuations,
				a land value map shall be prepared for the assessor's review that will indicate all
				unit values and underlying data used to derive unit values.
14. The firm shall create a neighborhood map for
				the assessor that will indicate all neighborhoods and/or value control sectors in
				the municipality;
15. It is recommended
				that the municipality obtain a Computer-Assisted Mass Appraisal package for purposes
				of revaluation maintenance;
16. The firm
				shall provide all office space, furniture, equipment, machines, and other items
				required in connection with this project unless otherwise provided by
				contract.
17. The firm shall assist by
				providing expert witnesses in the defense of all valuations rendered to the
				municipality that are appealed to the county tax board. The firm's obligation with
				respect to this requirement is limited to the initial appeal of an assessment filed
				during the year in which the revaluation is implemented or the following tax year.
				Such assistance shall include a qualified expert from the firm who is knowledgeable
				with regard to challenged assessments. In the event the municipality elects to
				utilize the defense services of the firm for appeals beyond the county board of
				taxation level and which are filed during the year in which the revaluation is
				implemented or the following tax year, an hourly rate for such services shall be set
				forth by the firm. Said hourly rate shall apply to services rendered by the firm in
				connection with preparation, reinspections, consultations, and actual appearances at
				appeal proceedings.