New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 12A - COUNTY BOARDS OF TAXATION › Subchapter 1 - GENERAL PROVISIONS › Section 18:12A-1.14 - Revaluations; reassessments, compliance plans

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Regarding voluntary
				revaluations, when a taxing district proposes to revalue real property in said
				district voluntarily, the taxing district must notify in writing the assessor and
				the county board of taxation of such intent and must obtain approval of the
				revaluation contract from the Director of the Division of Taxation (Director) as
				prescribed by law (N.J.S.A. 54:1-35.35 et seq., N.J.A.C.
				18:12-4, and N.J.S.A. 54:4-23, as
				amended).
(b) Regarding revaluation
				orders by a county board of taxation, when a board determines the need to order a
				taxing district to revalue its real property, it shall submit the proposed order to
				the Director of the Division of Taxation, for his or her approval outlining the
				reasons that warrant such action. Upon approval of such order, the board shall take
				appropriate action to implement same.
1. The
				criteria utilized by a board when it is considering a proposal to order a taxing
				district to conduct a revaluation shall include the following. However, a board may
				consider any other criteria that relate to the need for revaluation. The results of
				a board's findings with respect to these criteria and all other bases for issuing a
				revaluation order shall be attached to the written order when it is submitted to the
				Director of the Division of Taxation for approval.
i. General coefficient of deviation: A coefficient
				of deviation greater than 15 percent generally indicates a need for revaluation. If
				it is 15 percent or less, then other factors must also be used to justify a need for
				a revaluation. This is an average deviation from the average assessment sales ratio
				expressed as a percentage of average assessment ratio for each taxing district, for
				all properties included in "usable sales." It is a measure of variation in
				assessment-sales ratio of all properties sampled without regard to property class,
				property size, or any other property characteristic.
ii. Stratified coefficient of deviation: This is
				an average deviation of assessment sales ratios for all usable sales of each
				property class from the average assessment ratio for the class. It provides a
				measure of assessment uniformity for properties within each class, but provides no
				insight into comparability of assessment levels among property classes. A stratified
				coefficient of deviation of greater than 15 percent may indicate a need for
				revaluation.
iii. Segmented coefficient
				of deviation: This is an average deviation of assessment sales ratios for all
				"usable sales" of each property class from the average assessment ratio for all
				properties of all classes expressed as a percentage average assessment ratio for all
				properties of all classes. It provides a measure of uniformity or lack thereof of
				one property class compared to other property classes. A segmented coefficient of
				deviation of greater than 15 percent may indicate a need for revaluation.
iv. In analyzing the coefficient of deviation,
				consideration should be given to the size of the sales sampling. For the above
				purpose, a coefficient of deviation above 15 percent generally denotes lack of
				uniformity in assessments.
v. Director's
				Ratio: The Director's Ratio is the average ratio of assessed to true value for each
				taxing district as determined by the Director of the Division of Taxation, in the
				Table of Equalized Valuations promulgated annually pursuant to
				N.J.S.A.
				54:1-35.1. A source of information for
				ascertaining assessment-sales ratios is the data gathered in the equalization
				program for the distribution of State school aid. A Director's Ratio of 85 percent
				or lower generally denotes noncompliance where, as is the norm, the adopted
				percentage level of assessment established by the county board of taxation is 100
				percent. A continual decline of assessment-sales ratios in a district from the
				percentage level of taxable value established by a board is an indication of a lack
				of maintenance of the assessment list. However, a declining ratio does not provide
				any insight into the level of uniformity of assessment and in and of itself does not
				imply any automatic judgment with respect to lack of uniform assessments.
vi. Individual assessment-sales ratios: The
				individual sales are listed in order of ratios from the lowest to the highest. A
				wide divergence of ratios as opposed to a clustering of ratios at a common level
				would be indicative of a lack of uniformity in assessments. Ratios above and below
				the common level range of
				N.J.S.A.
				54:1-35a.b are also indicative of a lack of
				uniformity in assessments.
vii. Class
				weighted ratios: The weighted ratio of a property class is found by dividing the
				total ratables of a property class by the total true value of that property class.
				Conformity in the class weighted ratios is an indication of uniformity between
				property classes. Wide variances in class weighted ratios are an indication of a
				lack of uniformity in assessments between property classes.
viii. District weighted ratio: The district
				weighted ratio is found by adding the total ratables for each of the four property
				classes and dividing the sum by the total true value for all classes of real
				property. A district weighted ratio, which is based on usable sales for the most
				recent sample period, is indicative of whether there is compliance with the adopted
				percentage level of assessment established by a county board of taxation.
ix. Neighborhood and zoning changes: The need for
				a revaluation program may be indicated by neighborhood and zoning changes which
				affect value in part or all of a taxing district. Changes in uses permitted by
				zoning may substantially increase or decrease the value of property. A revaluation
				order citing changes in zoning as its basis must delineate the impact of zoning
				changes as the changes relate to assessments.
x. Lack of adequate records: A lack of adequate
				records, such as property record cards, which cause difficulty for the assessor in
				arriving at a sound assessment, is indicative of the need for a revaluation. The
				absence of essential information which may affect assessments is detrimental to the
				valuation process and may impede the maintenance of an assessment list. The absence
				of information relating to changes made to improvements such as failure of property
				owners to secure building permits or copies of building permits not being furnished
				to an assessor is a contributory factor resulting in the lack of uniform
				assessments.
xi. Year of last
				revaluation or reassessment: If a revaluation or reassessment has not taken place in
				a municipality for 10 years or more, this can be a factor in ordering a
				revaluation.
xii. Amount of revenue lost
				due to appeals. The county board of taxation can consider the amount of revenue a
				municipality has lost due to appeals as indicating a need for a
				revaluation.