Newark Property Tax Revaluation – What You Need to Know
The City of Newark, New Jersey, has begun a property tax revaluation of all real estate, including commercial and industrial properties. The revaluation is slated to be complete in 2027, but appraisers are already scheduling and conducting inspections of properties now.
The purpose of the revaluation is to ensure that all properties are assessed at the current “full and fair value.” Since this is the first tax 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 change in assessments will redistribute the overall burden amongst the property owners, with only owners experiencing increases in their taxes.
In the last revaluation, there was a dramatic shift of the tax burden onto the commercial tax base, especially the multifamily properties. It is vital that these property owners be alert to the process and ensure that they take all available steps to mitigate the increases in assessments and taxes. If an appeal is needed, properties that are owned by corporations must be represented by counsel in the New Jersey Tax Court and it is vital to hire counsel experienced in these types of matters. A successful property tax appeal can bring down the assessment and result in significant tax savings.*
How should Newark taxpayers prepare for the revaluation?
Commercial Taxpayers should not wait for the revaluation to be complete to engage counsel. Owners of income-producing property can lose the right to appeal their assessments if they do not protect their rights during the revaluation process. They also need to decide whether to provide access to the revaluation firm for inspections. It is also vital to be conscious of the revaluation when developing or acquiring property.
Skoloff & Wolfe, P.C. advises many of the city’s largest property taxpayers and has assisted clients in the development and stabilization of several of the largest projects in Newark. Contact us to review your Newark real estate holdings and potential for a property tax appeal.
Skoloff & Wolfe, P.C. is well-versed in the area of property tax law. The Tax Department has litigated the value of virtually every type of commercial, industrial, and multi-family property. 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.
* Results may vary depending on your particular facts and legal circumstances.
