On October 29, New Jersey was struck with a historic storm that caused wide-spread and unprecedented property damage throughout the State. If you are the owner of property that has been destroyed or damaged in a way that materially depreciates its value, you may be entitled to a reduction of the assessment of the property for tax year 2013.
By way of background, all real property in New Jersey is valued for tax purposes as of October 1 of the pretax year. Thus, all 2013 tax assessments were fixed as of October 1, 2012. However, New Jersey law provides as follows:
When any parcel of real property contains any building or other structure which has been destroyed, consumed by fire, demolished, or altered in such a way that its value has materially depreciated ... by the action of storm, fire, cyclone, tornado, or earthquake, or other casualty, which depreciation of value occurred after October 1 in any year and before January 1 of the following year, the assessor shall, upon notice thereof being given to him by the property owner prior to January tenth of said year, and after examination and inquiry, determine the value of such parcel of real property as of said January first, and assess the same according to such value.
See N.J.S.A. 54:4-35.1.
Therefore, a property owner who has sustained significant damage as a consequence of the recent storm may request that the tax assessor inspect such property and, if appropriate, reduce the assessment to reflect such damage. Such request MUST be made IN WRITING prior to January 10, 2013 for the property owner to avail itself of this right.
