Property taxes can be a financial killer when it comes to affording your new home. In fact, New Jersey has the honor of having the highest property taxes in the nation. When money becomes tight, it is easy to decide to pay the mortgage company, which could foreclose or file a foreclosure suit in 90 days, instead of property taxes. As a result, many people lose their homes to unpaid property taxes, or find themselves in a hole of back-taxes they can not afford.
Amnesty Program can Help
There is good news for anybody who owes property tax. The good news is that if you owe taxes from Feb. 1, 2009 and Sept. 1, 2017, a new amnesty program is in effect. The program applies to any kind of state taxes, not just property taxes. Paying back owed taxes during the amnesty period will allow you to pay property tax with no penalty fees, and only half of the interest accrued being due.
Dates for the amnesty period have not been established yet, as the law was just signed by the governor. You can keep updated on when the program starts on the state’s Department of the Treasury website. It is hoped that the program will increase revenue to the state, allow people to keep their homes, and avoid lawsuits.
Of course, there are some drawbacks. You must be able to pay off what is owed in full during the amnesty period, and if you do not pay them during that time, you will have an extra 5% penalty assessed onto what you owe.
Appealing Taxes
Many people do not know that they have a right to appeal their assessed property value, which impacts what property taxes are imposed. Taxes are initially determined by an assessed value of the property and dividing that by what is known as an equalization ratio. Every municipality has different ratios.
If you appeal your tax bill, you are appealing the value that has been assessed. Some research can be done on your own to see if property has been over-assessed, such as conducting comparable property studies, and many real estate agents can assist with this investigation, as well.
If your property is over-assessed, you will need to prove it to your local zoning or tax board by providing those comps, and by having someone like a real estate agent or property appraiser testify as to value. The expert can be especially helpful if the property is unique and thus there are no reliable comps, or if there are special problems with the property that would lower its assessed value.
There are yearly deadlines to appeal every years assessed tax, which usually begin around April, with hearings on each appeal being conducted over the summers. Just remember that even if you appeal, you still have to pay the bill in full first, and a refund or credit on your tax bill will be given if you eventually win your appeal.
Buying or selling a home? Get the advice of a qualified real estate attorney. Contact Agnes Rybar LLC, to make sure you have representation in any real estate transaction.
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