Requesting Tax Assessment Reduction
Sample Letter to your Tax Assessor
Taxes are based on the market value of your property, or some percentage of the value, less any state deductions or exemptions; the remaining amount is then multiplied by the local millage rate. A millage rate of 7.5, for example, means you pay $7.50 for every $1,000 of taxable value; if you had $100,000 in taxable value after all adjustments were made, you’d pay an annual $750 tax.
Since storm damage to a home can significantly drive down its value, not just due to the damage to that home, but also as a result of damage to approximate derelict properties and the community at large. For example, if a storm wrecks the roof of a neighboring home, another home in the community could have its value negatively impacted. Or if you have invested in a second home in one of the popular summer rental areas on the shore as a means of income or plans for future retirement, the demand for your area has plummeted.
So what do you do?
It is worth submitting a letter to your local tax adjustor requesting a property tax adjustment as a result of major depreciation to the value of your property.
1 – You need to find out the name of your local tax adjustor. A simple Google Search of the term ‘Tax Assessor Town Name’ should yield great great results. This should also help you find where to address your letter, which is generally to your Township.
2 – You should compose a letter requesting a reassessment due natural disaster citing a New Jersey Statute that allows for these kinds of contingencies. Below is a template you can use to write to your Tax Assessor. Please keep in mind your letter should be specific to your situation.
Your Permanent Address
Town, State Zip
Tax Assessor Name
Town, State Zip
Re: Hurricane Sandy Storm Damage – Assessment Reduction
Property Address: Address to where damage occurred
Dear Mr. ,
My wife _______ and I own the above property, and have been impacted by Hurricane Sandy. Pursuant to the following NJ statute, we are hereby requesting that our property taxes by adjusted accordingly to account for the massive devastation to our area.
N.J.S.A. 54:4-35.1 provides that in the event of a major depreciation in value of property that occurs between October 1 and January 1 , occurring through a fire or natural disaster, the assessment may be reduced to take into account the damage.
Not only did our home sustain damage, but our community has experienced massive flood damage that will surely impact the value of our homes. Given the fact that our homes may not be livable for at least a year, the demand for these homes will certainly plummet. Potential buyers will know such damage has occurred, and property values will surely be negatively impacted.
Please consider this letter an official notice that we are requesting that our assessment be reduced to account for the damage caused to our area by this tremendous natural disaster. Kindly confirm receipt of this letter, and inform us of any additional action that we must take to receive the reduction in our assessment.
I can be reached at 123-123-1234, of via email at email@example.com