Newark Property Tax Revaluation – What You Need to Know
The City of Newark, New Jersey, has been ordered to complete a municipal-wide revaluation of all real estate, including commercial and industrial properties. The revaluation is scheduled for 2027, but inspectors are already scheduling and conducting inspections.
Phases of the Revaluation Process
- Property Inspection – the revaluation firm conducts an interior and exterior inspection of the property.
- Income and Expense Requests – data is gathered and analyzed to determine each property’s full and fair value (true market value).
- Initial Notice of Assessment – the revaluation firm provides the proposed assessment via mail.
- Informal Meeting – property owners have the opportunity to discuss their proposed assessment with a representative of the revaluation company at an informal hearing.
- Final Notice of Assessment – after any adjustments resulting from the informal hearings, the final assessed values are mailed to all taxpayers.
- Formal Assessment Appeal – if the taxpayer is dissatisfied with the final assessment, they have the right to file a formal appeal, at the Essex County Board of Taxation or the Tax Court of New Jersey, being mindful of deadlines and other requirements.
How Will The Revaluation Affect Newark’s Property Taxes?
The purpose of the revaluation is to ensure that all properties are assessed at their current “full and fair value.” Since this is the first revaluation in Newark in over 10 years, it is likely that most property owners will experience dramatic increases in their assessments. However, the revaluation is a revenue-neutral process, meaning that increases in assessments do not necessarily correlate to increases in taxes. Instead, the changes in assessments will redistribute the overall burden amongst taxpayers, seeking to address potential inequities that have arisen over time.
Mitigating Increases in Assessments and Taxes
In the last Newark revaluation, there was a dramatic shift of the tax burden onto the commercial tax base, especially multifamily properties. While we do not anticipate an increase to the same degree in this revaluation, it is vital that taxpayers be alert to the process and take all available steps to mitigate the revaluation’s potential impact. If an appeal is needed, corporations must be represented by counsel in the New Jersey Tax Court, and it is crucial to hire counsel experienced in these types of matters. A successful property tax appeal can materially reduce assessments and taxes, thereby dramatically increasing property values.*
How should Newark taxpayers prepare for the revaluation?
While individual circumstances can vary, we typically recommend that taxpayers allow inspectors access to their properties. We also generally recommend that owners of income-producing properties provide timely responses to the Assessor’s requests for income and expense information. Failure to respond timely and truthfully is a basis for subsequent tax appeals to be dismissed.
Finally, Commercial Taxpayers should not wait for their revaluation assessments to be finalized to engage counsel. Taxpayers should work with counsel now to ensure that the revaluation firm views their property through the appropriate lens and to protect their rights of appeals. It is also essential to be conscious of the potential impact of the revaluation when developing or acquiring property in the interim.
Upcoming Revaluations in Essex County
The municipalities of Cedar Grove, Glen Ridge, and Verona are undergoing revaluations for 2026. For 2027, Caldwell, Fairfield, and West Caldwell are undergoing revaluations.
Skoloff & Wolfe, P.C., advises many of Newark’s and the state’s largest real estate taxpayers and has assisted clients in the development and stabilization of several of the transformative projects in Newark. Our attorneys also frequently counsel clients regarding property tax exemption matters, long-term abatements, and PILOTs. Our clients include developers, management companies, financial institutions, REITs, hospitals, universities, religious institutions, private equity firms, and insurance companies. Contact us to review your Newark real estate holdings and potential for a property tax appeal.
* Results may vary depending on your particular facts and legal circumstances.
