New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 12 - LOCAL PROPERTY TAX: GENERAL › Subchapter 1 - CATEGORIES OF NONUSABLE DEED TRANSACTIONS › Section 18:12-1.1 - Categories enumerated

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The following deed transactions are not usable
				in determining assessment-sales ratios pursuant to
N.J.S.A.
				54:1-35
. 1 et seq.:
1. Sales between immediate family
				members;
2. Sales in which "love and
				affection" are stated as part of the consideration;
3. Sales between a corporation and its
				stockholder, its subsidiary, its affiliate, or another corporation whose stock is in
				the same ownership;
4. Transfers of
				convenience; for example, transfers correcting defects in title, a transfer by a
				husband either through a third party or directly to himself and his wife for the
				purpose of creating a tenancy by the entirety, etc.;
5. Transfers that did not occur within the
				sampling period. Sampling period is defined as the period from July 1 to June 30,
				inclusive, preceding the date of promulgation of the Director's Table of Equalized
				Valuation, except as otherwise stated. The recording date of the deed within this
				period is the determining date since it is the date of official record. Where the
				date of deed or date of formal sales agreement occurred prior to January 1, next
				preceding the commencement date of the sampling period, the sale shall be
				nonusable;
6. Sales of property
				conveying only a portion of the assessed unit, for example, a parcel sold out of a
				larger tract where the assessment is for the larger tract, usually referred to as
				subdivisions, split-offs, or cut-offs;
7. Sales of property substantially improved
				subsequent to assessment and prior to the date of sale;
8. Sales of an undivided interest in real
				property;
9. Sales of property that are
				subject to an outstanding Municipal Tax Sales Certificate, a lien for more than one
				year in unpaid taxes on real property pursuant to
N.J.S.A.
				54:5-6
, or other governmental
				lien;
10. Sales by guardians,
				testamentary trustees, executors, and administrators;
11. Judicial sales such as partition
				sales;
12. Sheriff's sales;
13. Sales in proceedings in bankruptcy,
				receivership, or assignment for the benefit of creditors, dissolution or liquidation
				sales, and short sales;
14. Sales of
				doubtful title including, but not limited to, quit-claim deeds;
15. Sales to or from the United States of America,
				the State of New Jersey, or any political subdivision of the State of New Jersey,
				including boards of education and public authorities;
16. Sales of property assessed in more than one
				taxing district;
17. Sales to or from
				any charitable, religious, or benevolent organization;
18. Transfers to banks, insurance companies,
				savings and loan associations, mortgage companies, or other financial institutions
				when the transfer is made in lieu of foreclosure;
19. Sales of property for which assessed value has
				been or is substantially affected by demolition, fire, documented environmental
				contamination, or other physical damage subsequent to assessment and prior to the
				date of sale;
20. Acquisitions, resale,
				or transfer by railroads, pipeline companies, or other public utility corporations
				for easements or right-of-way purposes;
21. Sales of low/moderate income housing as
				established by the Council on Affordable Housing;
22. Transfers of property in exchange for other
				real estate, stocks, bonds, or other personal property;
23. Sales of commercial or industrial real
				property, which include machinery, fixtures, equipment, inventories, licenses, or
				goodwill when the values of such items are indeterminable;
24. Sales of property, the value of which has been
				or is substantially influenced by zoning changes, planning board approvals,
				variances, or rent control provisions subsequent to assessment and prior to the
				sale;
25. Transfers in which the full
				consideration as defined in the "Realty Transfer Fee Act" is less than $
				100.00;
26. Sales that for reasons other
				than specified in the enumerated categories are not considered to be between a
				willing, knowledgeable buyer, not compelled to buy, and a willing, knowledgeable
				seller, not compelled to sell;
27. Sales
				occurring within the sampling period but prior to a change in assessment resulting
				from a recognized revaluation or reassessment, that is, sales recorded during the
				period July 1 to December 31 next preceding the tax year in which the revaluation or
				reassessment value is placed on the tax roll;
28. Sales of property subject to leaseback
				arrangements;
29. Sales of property
				subsequent to the year of appeal, where the assessed values are set by court order,
				consent judgment, or the "Freeze Act";
30. Sales in which multiple parcels are conveyed
				collectively as one transaction with an arbitrary allocation of the sale price of
				each parcel;
31. First sale after
				foreclosure by a Federal- or State-chartered financial institution;
32. Sales of a property in which an entire
				building or taxable structure is omitted from the assessment; and
33. Sales of qualified farmland or currently
				exempt or abated property.