FOCUS ON THE PLAN, NOT THE PROBLEM.
NEW JERSEY FREEZE ACT
NJSA 54:3-26 sets forth the provisions of New Jersey’s “Freeze Act.” In relevant part, the Freeze Act applies to final Judgments entered by the County Board of Taxation, and provides that the new assessment, resulting from the appeal, may not be raised by the Tax Assessor during the year of the appeal, or during each of the following two years. The notable exceptions to the Freeze Act are:
- Either party appeals the Judgment of the County Tax Board to the Tax Court. In these cases, the Freeze Act shall apply to the final judgment of the Tax Court.
- A municipal wide revaluation or re-assessment is conducted during either of the two years following the successful tax appeal.
FREEZE ACT
Section 18:12A-1.13 - Freeze Act
(a) When an assessment is subject to the "freeze" provisions of 54:51A-8 or 54:3-26, there shall be no increase in the assessment for any tax year subject to such "freeze" except upon petition first filed with and granted by the county board of taxation or the Tax Court.
(b) If the taxing district alleges that there has been a change in the value of the property since the date of a county board of taxation judgment that is subject to the Freeze Act, the taxing district shall file a petition with the board together with proof of service thereof upon the owner of the property to increase the amount of the assessment. Such petition shall specifically set forth the nature of the changes relied upon as a basis for the claim that there has been a change in value of the property. A copy of the petition shall be served upon the owner of the subject property prior to the filing of the petition with the board.
(c) A judgment entered by a county board of taxation which is not further appealed by a party shall be deemed to be binding and conclusive upon the municipality and municipal tax assessor for the tax year in question and the two tax years immediately thereafter unless a revaluation, reassessment, or change in value has occurred subsequent to the assessing date. If as of October 1 of the pre-tax year, the property in question has been the subject of an addition qualifying as an added assessment, a condominium or cooperative conversion, a subdivision or a zoning change, the conclusive and binding effect of such judgment shall terminate with said pre-tax year.
1. If the assessor increases the assessment or fails to reflect on the tax duplicate a county board of taxation or Tax Court judgment issued prior to the final preparation of the tax duplicate in either of the two years following the year for which the judgment of the county board of taxation was rendered, and if said judgment is a final judgment not further appealed, the burden of proof shall be on the taxing district to establish that the assessor acted reasonably in increasing the assessment. If the county board of taxation finds that the assessor did not act reasonably in increasing the assessment or failed to reflect said judgment on the tax duplicate, the county board of taxation shall award to the taxpayer reasonable counsel fees, appraisal costs, and other costs which shall be paid by the taxing district.
(d) A taxpayer may waive the application of the Freeze Act for one or both of the tax years affected and such waiver of the freeze shall be reflected in a judgment entered by the county board of taxation.
(e) A taxpayer may apply to the county board of taxation within a reasonable period of time upon proper notice to the municipality seeking the enforcement of the Freeze Act with regard to a judgment previously entered by the county board of taxation.
N.J. Admin. Code § 18:12A-1.13
Amended by 49 N.J.R. 271(a), effective February 6, 2017
2013 New Jersey Revised Statutes
Title 54 - TAXATION
Section 54:3-26 - Hearing, determination of appeals
Universal Citation: NJ Rev Stat § 54:3-26 (2013)
54:3-26. Hearing, determination of appeals
54:3-26. The county board of taxation shall hear and determine all such appeals within three months after the last day for filing such appeals, and shall keep a record of its judgments thereon in permanent form, and shall transmit a written memorandum of its judgments to the assessor of the taxing district and to the taxpayer, setting forth the reasons on which such judgment was based, and in all cases where the amount of tax to be paid shall be changed as the result of an appeal, to the collector of the taxing district. The Director of the Division of Taxation shall prescribe such procedures and forms for the setting forth of such written memorandums of judgments as may be necessary.
Whenever any review is sought of the determination of the county board of taxation, the complaint shall contain a copy of the memorandum of judgment of the county board.
Where no request for review is taken to the Tax Court to review the action or determination of the county board involving real property the judgment of the county board shall be conclusive and binding upon the municipal assessor and the taxing district for the assessment year, and for the two assessment years succeeding the assessment year, covered by the judgment, except as to changes in value of the property occurring after the assessment date. The conclusive and binding effect of such judgment shall terminate with the tax year immediately preceding the year in which a program for a complete revaluation or complete reassessment of all real property within the district has been put into effect. If as of October 1 of the pretax year, the property in question has been the subject of an addition qualifying as an added assessment, a condominium or cooperative conversion, a subdivision or a zoning change, the conclusive and binding effect of such judgment shall terminate with said pretax year.
If the assessor increases the assessment or fails to reflect on the tax duplicate a county board of taxation or Tax Court judgment issued prior to the final preparation of the tax duplicate in either of the two years following the year for which the judgment of the county board was rendered, and if said judgment is a final judgment not further appealed, the burden of proof shall be on the taxing district to establish that the assessor acted reasonably in increasing the assessment. If the county board finds that the assessor did not act reasonably in increasing the assessment or failed to reflect said judgment on the tax duplicate, the county board shall award to the taxpayer reasonable counsel fees, appraisal costs and other costs which shall be paid by the taxing district.
Amended 1946, c.161, s.18; 1957, c.36, s.1; 1979, c.499, s.13; 1999, c.208, s.3.
