It’s almost October, and that means that assesment ratios will be released by the New Jersey Division of Taxation very soon for each . Sometimes called the “Chapter 123 ratio” or the “Director’s ratio”, in most towns it’s a key metric in determining whether your property is over-assessed and what you’ve got to prove to get tax relief.
Every one of the state’s 564 municipalities has its own ratio. In most towns, it represents the difference between what your assessment is and what your property’s actual market value is supposed to be based on that assessment. Here’s a simple example of how it works:
Assessment: $500,000
Ratio: 50.00%
“Actual” Market Value: $1,000,000
The ratio, developed using sales data from each town, changes each year. So, it’s not enough to know your assessed value; you need to know your town’s ratio as well.
Of course, if your municipality conducts a town-wide revaluation or reassessment, or is located in Monmouth County and participates in the Assessment Demonstration program, then your assessment is presumed to be the property’s actual market value.
Not sure if your property is overassessed? Assessment reviews are complimentary - contact the Englert Law Firm to help.