Bill Text: NJ S205 | 2018-2019 | Regular Session | Introduced
Bill Title: Concerns assessment of real property; requires cessation of all State aid to municipality under certain circumstances when assessments not kept current.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-01-09 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S205 Detail]
Download: New_Jersey-2018-S205-Introduced.html
STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Senator DECLAN J. O'SCANLON, JR.
District 13 (Monmouth)
SYNOPSIS
Concerns assessment of real property; requires cessation of all State aid to municipality under certain circumstances when assessments not kept current.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the assessment of real property and supplementing P.L.1973, c.123 (C.54:1-35a et al.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Each county board of taxation, in consultation with the county tax administrator, or the county assessor in a municipality operating under the "Property Tax Assessment Reform Act," P.L.2009, c.118 (C.54:1-86 et seq.), shall annually review the real property values in each municipality in the county in accordance with criteria set forth in chapter 12A of Title 18 of the New Jersey Administrative Code to determine whether the real property values in any municipality in the county indicate a need for that municipality to undergo a revaluation or reassessment of real property located in the municipality. Not later than December 1 of each year, the county tax administrator, or the county assessor in the case of a municipality operating under the "Property Tax Assessment Reform Act," P.L.2009, c.118 (C.54:1-86 et seq.), shall provide a list of the municipalities located in the county that the county tax board has determined require the revaluation or reassessment of real property to the State Treasurer and the Director of the Division of Taxation in the Department of the Treasury.
2. In accordance with the provisions of statutory law and with any regulations promulgated thereunder, following the annual review of real property by a county board of taxation as required in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) and upon approval by the Director of the Division of Taxation in the Department of the Treasury, the board shall compel the implementation of a revaluation or reassessment of real property in any municipality in the county in which the property values indicate a need for a revaluation or reassessment of real property therein.
If a municipality fails to comply with a revaluation or reassessment, as appropriate, ordered by the county board of taxation in a timely manner, the county board of taxation shall cause the revaluation or reassessment, as appropriate, to be performed at the municipality's cost. The cost of a revaluation or reassessment, as appropriate, shall be directly billed to such a municipality, in addition to the apportionment valuation, through the adjustment of the county levy for that municipality pursuant to R.S.54:4-48 and R.S.54:4-49.
A municipality feeling aggrieved by a decision of the county board of taxation to cause the revaluation or reassessment, as appropriate, to be performed at the municipality's cost may file an appeal of that decision of the county board of taxation to the Tax Court within 45 days of the approval by the Director of the Division of Taxation of the county tax board's order requiring the revaluation or reassessment, as appropriate.
3. The Director of the Division of Taxation in the Department of the Treasury shall investigate the failure of a county board of taxation to perform the annual revaluation review required in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), or to compel a revaluation or reassessment as required in section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill). Following that investigation, if the director determines that any, or all, of the members of the county board of taxation willfully or intentionally failed, neglected, or refused to comply with the requirements of sections 1 and 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), the director shall advise the State Treasurer and the Governor of his determination, and any, or all of those members, shall be subject to removal from office pursuant to R.S.54:3-28.
4. The State Treasurer shall withhold the payment of all State aid awarded, or to be awarded, to a municipality when the average ratio of assessed to true value of real property in the municipality, as determined by the Director of the Division of Taxation in the Department of Treasury pursuant to section 5 of P.L.1973, c.123 (C.54:1-35b), falls below 85percent for five consecutive years, or the general coefficient of deviation for the municipality exceeds 15 percent for five consecutive years. The State Treasurer shall authorize the resumption of the awarding of new State aid to such a municipality only after a revaluation of real property has been implemented in the municipality.
The State Treasurer shall withhold the payment of State aid to a municipality as of July 1 of the fifth tax year in which the average ratio of assessed to true value in the municipality has fallen below 85 percent or the general coefficient of deviation for the municipality exceeds 15 percent, and State aid shall not resume until July 1 of the tax year in which the revaluation of property in the municipality is implemented. After the resumption of the payment of State aid to the municipality, the municipality shall not receive any portion of the withheld State aid.
As used in this section:
"General coefficient of deviation" means the average deviation from the average assessment sales ratio expressed as a percentage of average assessment ratio for each taxing district, for all properties included in "usable sales" without regard to property class, property size, or any other property characteristic.
"State aid" means Consolidated Municipal Property Tax Relief Aid; Energy Tax Receipts Property Tax Relief Aid distributed pursuant to the "Energy Tax Receipts Property Tax Relief Act," P.L.1997, c.167 (C.52:27D-438 et seq.); Transitional Aid to Localities or any successor discretionary aid program for municipalities in fiscal distress; payments in lieu of taxation distributed pursuant to the "Garden State Preservation Trust Act," P.L.1999, c.152 (C.13:8C-1 et seq.); and watershed moratorium offset aid distributed pursuant to section 1 of P.L.1999, c.225 (C.58:29-8).
5. This act shall take effect immediately.
STATEMENT
This bill would require each county board of taxation, in consultation with the county tax administrator, or the county assessor in a municipality operating under the "Property Tax Assessment Reform Act," P.L.2009, c.118 (C.54:1-86 et seq.), to annually review the real property values in each municipality in the county in accordance with criteria set forth in chapter 12A of Title 18 of the New Jersey Administrative Code to determine whether the real property values in any municipality in the county indicate a need for that municipality to undergo a revaluation or reassessment of real property located in the municipality. Not later than December 1 of each year, the county tax administrator, or the county assessor, as appropriate, must provide a list of the municipalities located in the county that the county tax board has determined require the revaluation or reassessment of real property to the State Treasurer and the Director of the Division of Taxation.
After the county board of taxation conducts the required annual review, it shall compel the implementation of a revaluation or reassessment of real property in any municipality in the county in which the property values indicate a need for a revaluation or reassessment of real property.
If a municipality fails to comply with a revaluation or reassessment, as appropriate, ordered by the county board of taxation in a timely manner, the county board of taxation shall cause the revaluation or reassessment, as appropriate, to be performed at the municipality's cost.
The bill requires the director to investigate the failure of a county board of taxation to perform the annual revaluation review required in section 1 of the bill, or to compel a revaluation or reassessment as required in section 2 of the bill. Following that investigation, if the director determines that any, or all, of the members of the county board of taxation willfully or intentionally failed, neglected, or refused to comply with the requirements of sections 1 and 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), the director shall advise the State Treasurer and the Governor of his determination, and any, or all of those members, shall be subject to removal from office pursuant to R.S.54:3-28.
The bill would also require the State Treasurer to withhold all State aid awarded, or to be awarded, to a municipality when the ratio of assessed to true value of real property in the municipality, as determined by the Director of the Division of Taxation in the Department of Treasury pursuant to section 5 of P.L.1973, c.123 (C.54:1-35b), falls below 85% for five consecutive years. (The general coefficient of deviation is an average deviation from the average assessment sales ratio expressed as a percentage of average assessment ratio for each taxing district, for all properties included in "usable sales".) The State Treasurer shall authorize the resumption of the awarding of State aid to such a municipality only after only after a revaluation of real property has been implemented in the municipality.
In the bill, "State aid" is defined as Consolidated Municipal Property Tax Relief Aid; Energy Tax Receipts Property Tax Relief Aid distributed pursuant to P.L.1997, c.167 (C.52:27D-438); Transitional Aid to Localities or any successor discretionary aid program for municipalities in fiscal distress; payments in lieu of taxation distributed pursuant to P.L.1999, c.152 (C.13:8C-1 et seq.); and watershed moratorium offset aid distributed pursuant to section 1 of P.l.1999, c.225 (C.58:29-8).
