The shortcomings of New Jersey's property tax assessment administration have been noted by successive study commissions over the past 40 years. Multiple commissions called for greater State oversight, ultimately leading to the creation of the Assessment Demonstration Program.
Study Commissions
Property Tax Assessment Study Commission
"Glaser Commission"
Called for greater State oversight of property tax assessment administration.
State and Local Expenditure and Revenue Policy Commission
"SLERP Commission"
Continued the call for assessment reform and greater State oversight.
1998 Whitman Property Tax Commission Report
Further reinforced the need for modernization and standardization of assessments.
"Equity 21" Study
An accounting firm analyzed the implications of assessment problems and proposed strategies to create a fairer, more efficient structure for property tax assessment.
December 1, 2006 — Joint Legislative Committee Report
Government Consolidation and Shared Services Final Report
"Because vast differentials in assessed values among neighboring municipalities discourage consolidation, the modernization and standardization of assessments across the State is critically important."
One of the report's key recommendations was to:
"Create a modern, county-based system of property tax assessment."
The Monmouth County Initiative
Monmouth County Senator Joseph M. Kyrillos Jr. (a member of the report committee) suggested that the Commissioners of the Monmouth County Board of Taxation, working in collaboration with the County Assessor's Association, provide feedback on the recommendations and the opposition to consolidating the municipal assessment function to the County.
Armed with the challenge to improve every aspect of the system as if it was their own company, stakeholders began a forensic review of the current process.
The findings and recommendations represented a significant departure from traditional practices with a requirement to develop and employ technology solutions that would transform the current "supertanker" into a nimble "speedboat".
Legislative Timeline
First Legislative Attempt
- September 11, 2010: Senate bill S2234 introduced — established a "real property assessment demonstration program to demonstrate a more cost effective and accurate process of property assessment administration."
- October 21, 2010: Meeting held to discuss concerns with S2234. Representatives from the Governor's Office, Division of Taxation, Division of Local Government Services, the legislature, Monmouth County Tax Board, and Monmouth County Assessor's Association attended.
- Result: Assembly companion bill A3227 introduced. S2234 passed several committees and the full Senate (39-0), but the legislative session ended December 31, 2010 without passage into law.
Second Legislative Attempt
- May 5, 2011: Assembly bill A3939 introduced — again established a "real property assessment demonstration program."
- September 22, 2011: Senate companion bill S3029 introduced.
- Result: A3939 passed several committees and the full Assembly (78-0-0), but the legislative session ended December 31, 2011 without passage into law.
Third Time's the Charm — P.L. 2013, c. 15
- January 10, 2012: Assembly bill A1519 introduced.
- January 23, 2012: Senator Van Drew introduced S1213.
- October 4, 2012: S1213 passed by full Senate (36-0).
- December 17, 2012: A1519 passed by full Assembly (77-0).
- January 25, 2013: The "Real Property Assessment Demonstration Program" was signed into law as P.L. 2013, c. 15.
Implementation & Results
Program implementation began within Monmouth County (one of New Jersey's 21 counties) in 2014.
Without the aid of costly outside consultants, Monmouth County's existing employees have delivered more accurate individual assessments which have improved annual levy distribution to the best levels in recorded history.
As opposed to simply performing the same task from a different location, the Assessment Demonstration Program has proven to reform fundamental requirements of property taxation within New Jersey.
The Problem Being Solved
New Jersey's nine-million residents (626,000 in Monmouth County) pay the nation's highest property tax. In 2016, property owners were required to pay $28,354,102,097 to support county, municipal, and school services.
Where the New Jersey Constitution requires that the annual property tax levy be apportioned based on a parcel's proportionate share of the taxing district's total market value, due to the frailties of an antiquated system, many property owners annually escape paying their fair share to the detriment of all others.
Year-over-year, billions of dollars are being paid by the wrong people.
The ADP Mission
The Assessment Demonstration Program (ADP) was developed to permanently address the social inequities created by the existing system by employing:
Technology
Education
Statutory Reforms
...to create a modern assessment function for New Jersey.
Results in Monmouth County
By implementing new technology, a revised calendar, and performing annual reassessments to current market value on 251,988 parcels, Monmouth County has:
- Reduced costs
- Improved transparency
- Reduced the risk of under-collections
- Protected the general taxpayer from paying more than their annual fair share of the growing distributed levy
Learn More About ADP
See how annual reassessment works in practice and the metrics that demonstrate its effectiveness.
ADP Overview