Hurricane Sandy tax relief: Everything New Jersey homeowners need to know Nov 20, 2012

Since Hurricane Sandy devastated the Eastern seaboard a few weeks ago, homeowners have been trying to clean up the wreckage, assess the damage, and start to rebuild. It will take many months and, in some cases, years for the affected areas to get back to normal. As part of this reconstruction, assessors have been out in full force trying to assess the damage that runs throughout the state of New Jersey. Along the Jersey Shore this has been particularly difficult, as many of the coastal areas were the hardest hit and are still difficult to access. As a result, some assessors have been working off of aerial reconnaissance photos to count the homes that have been demolished.

Many of these assessors have been deployed to survey damages in support of a property tax appeal for an added or omitted tax assessment on properties affected by Hurricane Sandy. In New Jersey, the 2013 tax assessments were completed on Oct. 1. However, homeowners can file a property tax appeal to reflect any changes in the property between October and the first of the new year. As Hurricane Sandy occurred in this time period, homeowners that would like to utilize their right to get an amended property assessment need to file their appeal by Jan. 1, 2013. Here’s everything you need to know about filing this appeal before the deadline.

This tax appeal will allow homeowners to apply a level of depreciation to their property due to the effects of a natural disaster and the forecasted costs of home repair. Once a homeowner files this tax appeal, an assessor will visit the property and determine if the property’s assessed value can be reduced, and might apply an amended assessment. Hundreds of New Jersey homeowners have homes that are still standing, but are in dire need of structural repairs. For these types of properties, or properties where the homeowners are unsure if the house is habitable, these tax appeals could help in appropriately adjusting the property tax. In cases where the home, garage, or other buildings have been destroyed, the assessor might remove the improvement assessment.

Here are a few tips on what homeowners should keep in mind for this tax appeal:

• File the tax appeal ASAP. Not only is there a short time window to file the tax appeal, there are an unprecedented number of homes that assessors will need to evaluate. As there will likely be such a large volume of requests, make sure that you allow plenty of time to appeal before the deadline so that all necessary materials can be organized and submitted, and the assessor will have enough time to visit the property and observe the damage.
• Treat this appeal as an extraordinary property tax appeal. Assessors will need to review and assess each property before the appeal hearing date in early January. This can be time-consuming, so homeowners with minor damage, such as missing roof shingles or downed trees that didn’t hit the house, should not file for this appeal. Also, do not treat this as an arbitrary appeal to try to change the property assessment. This appeal is specifically for changes to the property between October and January. Frivolous appeals could prevent homeowners with severe damage from receiving a proper hearing.
• Document the damage. Some homeowners, especially those who reside on the barrier islands and other outlying areas, might not be able to get to their houses and assess damages for a few more weeks. But if you are able to visit the property, take photos of all damages so that assessors can predetermine how severe the damage is before they tour the property. Also document in writing all storm damage to the house and the extent that it is making the house uninhabitable. These simple steps can help streamline the assessment adjustment and hearing process.
• Work with your local tax board. Many county tax boards in New Jersey are aware of the volume of tax appeal requests that will be made in the coming weeks. Each county is working on developing a formula to assess the damage and is giving the public easy access to tax appeal materials through tax board websites. Homeowners should visit these sites to get information and tax appeal instructions, and download the tax appeal form. Make sure to submit and file the appeal with both the county tax board and your assessor.
• The tax appeal process is a quasi-judicial process. Homeowners should be aware that if they cannot resolve an adjustment of their assessment with the assessor, there will be a tax appeal hearing before the county tax board. This hearing is a judicial hearing with rights for appeal to the superior court by either party. Homeowners who are unfamiliar or uncomfortable with the process should consult an attorney.

Stay tuned in the coming weeks for more information on the reconstruction process, future development, and insurance issues that will affect property owners.