N.J. Admin. Code § 18:12-4.8

Current through Register Vol. 56, No. 21, November 4, 2024

Section 18:12-4.8 - Standards for revaluation

(a) Any firm engaged in the revaluation of all of the real property in a municipality shall comply with the standards and conditions set forth in this subchapter. The revaluation firm acts as the agent of the assessor and all determinations made by the firm shall be submitted to, and approved by, the assessor.

1. Real property shall be valued in accordance with 54:4-1 et seq.

2. With regard to real property being constructed or altered, the firm shall determine the percentage of completion and the appraised value of said property as of October 1 of the pre-tax year.

3. A separate list of exempt properties shall be provided indicating the values of said properties as if taxable.

4. Land qualified under the Farmland Assessment Act of 1964, 54:4-23.1 et seq., shall be valued in accordance with its qualified farmland value and its highest best use value.

5. In determining taxable values of all real property, the firm shall employ the three approaches to value where applicable. The capitalization procedure shall be included with the property record card and reconciled with the other approaches to value.

6. To facilitate the use of the approaches to value, the most recent edition of the Real Property Appraisal Manual for New Jersey Assessors shall be used for residential properties.

7. The firm shall include real property identification material on properly labeled individual property record cards similar in form and content to those illustrated in the Real Property Appraisal Manual. Distinct property record cards for each of the four classifications of real property shall be provided.

8. The real property identification material to be entered on property record cards shall include, but not necessarily be limited to, the following:

i. A scaled sketch of the exterior building dimensions;

ii. Notations of significant building components as ascertained from both an interior and exterior inspection;

iii. Entries on the property record cards respecting the values of each lot and building including such items as age, construction, condition, depreciation, obsolescence, additions and deductions, appraised value, recent sales prices, rental data, and other pertinent information pertaining to the valuation of the property;

iv. Where more than one property card is required in the description of a property, all cards shall be assembled in a standard file folder and properly labeled;

v. Each property record card shall identify the individual making the inspection and set forth the date when the interior inspection was made; and

vi. Digital photograph(s) of each individual property in the municipality.

9. The inspection of each property shall be performed in the following manner:

i. No less than three attempts shall be made to gain entry to each property;

ii. If successful entry has not been made after the first attempt, a card shall be left at the property indicating a date when a second attempt to gain entry will be made;

iii. The card shall include a phone number and address to permit the property owner to contact the firm to make other arrangements, if necessary;

iv. If entry is not possible upon the second visit, written notice shall be left advising that an assessment will be estimated unless a mutually convenient arrangement is made for a third visit to gain access to the property;

v. The firm shall schedule inspections during reasonable hours which shall include evenings and Saturdays; and

vi. The assessor shall be notified in writing of each failure to gain entry to a property and a list of all non-entries and reasons for same shall be provided to the assessor prior to the mailing of values.

10. Every contract shall include the following items representing progress and control of operations:

i. A commencement date and a completion date, the latter not later than November 1. Assessment notices shall not be sent prior to November 10. Taxpayer's reviews shall be completed not later than December 15;

ii. A requirement providing for the submission to the assessor of a work schedule or plan of operations;

iii. The firm shall provide written monthly progress reports to the assessor for review. The assessor shall forward the reports to the county board of taxation. If the county board of taxation does not receive the required monthly progress report, it must notify in writing the Director of the Division of Taxation immediately;

iv. Each progress report shall indicate the status or work progress which shall serve as a basis for proportional payments by the municipality. In no event shall more than 90 percent of the total contract price be billed until full completion and performance of the contract, except any requirements for defense of tax appeals. Furthermore, if the character or progress of the work is not satisfactory to the county board of taxation after two consecutive months, the county board shall also notify the Director of the Division of Taxation in writing of such lack of satisfactory progress as soon as possible; and

v. Any change in personnel shall be submitted in writing to the assessor and county board of taxation.

11. A provision committing the firm to conduct and/or assist the municipality in a program of taxpayer orientation and education regarding the revaluation program including, but not necessarily limited to, the following:

i. Press releases describing the purpose and nature of the revaluation program;

ii. Meetings with public groups in the community; and

iii. Mailings approved by the assessor, at the firm's expense to all property owners explaining the nature and purpose of the revaluation and setting forth a proposed date for the commencement of inspections in the municipality.

12. The firm shall provide its representatives with photographic identification cards.

13. Following the formulation of land valuations, a land value map shall be prepared for the assessor's review that will indicate all unit values and underlying data used to derive unit values.

14. The firm shall create a neighborhood map for the assessor that will indicate all neighborhoods and/or value control sectors in the municipality;

15. It is recommended that the municipality obtain a Computer-Assisted Mass Appraisal package for purposes of revaluation maintenance;

16. The firm shall provide all office space, furniture, equipment, machines, and other items required in connection with this project unless otherwise provided by contract.

17. The firm shall assist by providing expert witnesses in the defense of all valuations rendered to the municipality that are appealed to the county tax board. The firm's obligation with respect to this requirement is limited to the initial appeal of an assessment filed during the year in which the revaluation is implemented or the following tax year. Such assistance shall include a qualified expert from the firm who is knowledgeable with regard to challenged assessments. In the event the municipality elects to utilize the defense services of the firm for appeals beyond the county board of taxation level and which are filed during the year in which the revaluation is implemented or the following tax year, an hourly rate for such services shall be set forth by the firm. Said hourly rate shall apply to services rendered by the firm in connection with preparation, reinspections, consultations, and actual appearances at appeal proceedings.

N.J. Admin. Code § 18:12-4.8

Amended by 50 N.J.R. 664(a), effective 1/16/2018