Bill Text: NJ S1213 | 2012-2013 | Regular Session | Introduced
Bill Title: Establishes real property assessment demonstration program.
Spectrum: Slight Partisan Bill (Democrat 7-3)
Status: (Passed) 2013-01-25 - Approved P.L.2013, c.15. [S1213 Detail]
Download: New_Jersey-2012-S1213-Introduced.html
LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 1213
STATE OF NEW JERSEY
215th LEGISLATURE
DATED: SEPTEMBER 21, 2012
SUMMARY
|
Synopsis: |
Establishes real property assessment demonstration program. |
|
Type of Impact: |
Indeterminate increase in revenues and expenditures of demonstration counties and increased cost to certain municipalities. |
|
Agencies Affected: |
Participating counties and municipalities in those counties, Division of Local Government Services (Community Affairs) and Division of Taxation (Treasury). |
|
Office of Legislative Services Estimate |
||||
|
Fiscal Impact |
Year 1 |
Year 2 |
Year 3 |
|
|
Local Cost |
Indeterminate Fiscal Impact - See comments below |
|
||
|
Local Revenue |
Indeterminate Increase in Revenues - See comments below |
|
||
|
|
|
|||
· The Office of Legislative Services (OLS) has determined that the enactment of Senate Bill No. 1213 may result in increases in both revenues and costs to each demonstration county. This legislation may also have an indeterminate fiscal impact on certain municipalities in each county.
· The basis for the increase in costs include the provision of property assessment software, and training in its use, to municipalities in the county that currently utilize that software, and any ongoing costs related to the program, such as continuing education.
· Following the county's initial provision of the software and training, municipalities in each demonstration county will be charged annually for its use. These charges may be offset, in part, by savings in the municipal assessor's office from more efficient assessment practices.
· The bill requires the county to use revenues generated by assessment appeal filing fees to cover the technical costs of the demonstration program. According to the Division of Taxation a total of $3,492,125 in assessment appeal filing fees was collected by all of the counties in 2011.
BILL DESCRIPTION
Senate Bill No. 1213 of 2012 would establish a real property assessment demonstration program, which would be open for participation by any county in the State, to demonstrate a more cost-effective process of real property assessment administration. The demonstration program is based on the utilization, by all of a demonstration county's municipalities, of the same property assessment software, MOD-IV and a Computer-Assisted Mass Appraisal (CAMA) system. Under the bill, all future revaluations and reassessments of real property by municipalities in a demonstration county will be performed on the county system. The county system will also be used for other assessment-based functions, such as the development of a compliance plan, maintenance of assessments, and the calculation of added and omitted assessments. The board of taxation in a demonstration county will use revenues generated by assessment appeal filing fees to pay for the costs of the assessment data conversion. The bill prohibits the appropriation of any State funds for the demonstration program.
The bill provides that not more than four counties may participate in the demonstration program; not more than two in the first two full tax years after the bill's enactment and not more than two in the third and fourth full tax years after the bill's enactment. Before instituting a demonstration program, a demonstration county must provide the following information to the Director of the Division of Local Government Services and the Director of the Division of Taxation: 1) a resolution of the county board of taxation certifying that the board has sufficient funds available to pay all of the costs associated with the demonstration program; 2) a copy of its MOD-IV certification or a copy of a valid contract for MOD-IV services; and 3) a resolution approving the implementation of the demonstration program agreed to by not less than two-thirds of the members of the county's assessors association.
This legislation also requires the board of taxation in each demonstration county to compel the implementation of a revaluation or reassessment of real property. In the case when a municipality fails to complete the revaluation or reassessment in a timely manner, the county tax board will contract for the revaluation or reassessment of the municipality at the municipality's cost. The bill revises the statutory date for the assessment of real property in demonstration counties to implement the demonstration program's provisions concerning the re-scheduling of the assessment appeal process. Finally, the bill permits the State Treasurer and Director of the Division of Local Government Services to adopt rules and regulations necessary to implement the bill.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS has determined that the enactment of Senate Bill No. 1213 may result in both increased revenues and costs to the four demonstration counties qualified to establish a real property assessment demonstration program. This legislation may also have an indeterminate fiscal impact on certain municipalities in each of those counties. Initially, these costs include the provision of property assessment software and training in its use to municipalities that do not currently utilize this software and any ongoing costs related to the program, such as those associated with continuing education. Municipalities that do not currently use MOD-IV or CAMA software will be charged annually for its use following the county's initial provision of software and training. The impact of this user fee on each municipality will depend on whether or not the fee charged by the county is greater than or less than the fee currently charged to the municipality by a private vendor for the use of property assessment software.
The bill requires the county to use revenues generated by assessment appeal filing fees to cover the technical costs of the demonstration program. According to tax appeal information published by the Division of Taxation, revenues generated by tax appeal filings in all counties have risen sharply from $957,900 in 2007 to $3,492,125 in 2011. The OLS notes that the recent decline in property values due to current economic conditions has led to a rapid increase in property tax appeals, as compared to a similar period of time, filed by taxpayers seeking to have their assessments adjusted to reflect the current value of their property.
|
Section: |
Local Government |
|
Analyst: |
Senior Fiscal Analyst |
|
Approved: |
David J. Rosen Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).
