Reminder: Basic Pleading Requirements STILL Matter….

We all remember pleading requirements right? You know, jurisdiction, causes of action, claims for relief, etc. Well guess what? THEY STILL MATTER. The New Jersey Tax Court just provided a refresher course to one party in University Cottage Club of Princeton v. Princeton Borough.

In University Cottage, plaintiff sought tax exemptions as a historic site in 1998. As of 2003 designation as a historic site had not been granted by the New Jersey Department of Environmental Protection Commissioner and litigation ensued. A decision was finally made in 2010 by the Supreme Court of New Jersey affirming the DEP Commissioner’s decision to deny exemption status. University Cottage also sought appeal of their property tax assessment for the years 2002 through 2004. It is the property tax assessments that are at the heart of University Cottage’s pleading issue.

At the conclusion of the tax exemption matter the court addressed University Cottage’s tax assessment applications after being put on an inactive status. However, although University Cottage’s counsel orally raised valuation as an issue, the filed complaints only sought relief for the claimed tax exemption and the catch all phrase “such other relief as may be appropriate.” So as the court noted, valuation was not originally plead and the statute of limitations had expired for the years in question.

University Cottage therefore had two problems: 1) not stating a factual basis of a claim and relief sought and 2) missing the April 1st jurisdictional deadline to file a valid valuation claim. Attempting to save the matter, University Cottage argued that its valuation claim was incorporated within its exemption claim. The court dismissed this argument by deciding that an exemption claim is vastly different from a valuation claim in that they require different elements of proof. Further, there was no requisite showing necessary to allow the time barred valuation claim. In the end, University Cottage’s valuation claim was denied simply because it was not plead which thereby resulted in a costly lesson learned.

Steven E. Taylor
Taylor Law Firm, LLC
www.TLF-LLC.com

New Jersey 2011 Tax Appeal Season Is Here

Towns and boroughs in New Jersey have already begun sending property tax bills for year 2011.  As has been widely reported, the state of New Jersey has some of the highest property taxes in the entire country. Many owners now owe more for their property than it's worth (also known as being underwater) and due to the declining real estate market a perfect storm of sorts is now brewing thereby causing many unfair assessments to owners.

Property tax appeals in New Jersey are governed by New Jersey Statutes, Title 54 Taxation.  Appeals for any property (residential, commercial, agricultural and industrial) with an assessment that exceeds $1,000,000 have the option of filing with the County Board of Taxation or directly to the Tax Court.  Properties assessed at less than $1,000,000 are required to first file an appeal with the County Board of Taxation.  Following an unfavorable ruling, an appeal of the Board's judgment is then filed with the Tax Court who will provide a review of the Board's decision.  The filing deadline for appeals before a County Board of Taxation or the Tax Court is April 1, 2011.

Generally speaking, a property owner who can prove that their "true value" of property is more than 15% over that municipality's average ratio is per se entitled to a reduction.  The 2011 average ratios for all New Jersey municipalities can now be found online.  For example, an Englewood property assessed at $800,000 would need to prove a market value of approximately $710,000 or below to argue for a reduction.  Evidence of market value is usually established through the preparation of an appraisal and testimony of an appraiser in order to rebut the municipality's assessment.

The Taylor Law Firm is thoroughly prepared to help owners through the upcoming property tax season.  We partner with experienced appraisers ready to assist any owner, no matter the property type, in establishing a "true value" that will result in lowering assessments and taxes.  Contact us to schedule an appointment for a no cost analysis of your particular situation.

Steven E. Taylor
Taylor Law Firm, LLC
http://www.tlf-llc.com/