What is ADP?
ADP (Annual Demonstration Program) allows municipalities to conduct annual reassessments instead of periodic revaluations every 5-10+ years.
Enacted by P.L. 2013, c. 15, ADP was designed to keep assessments aligned with market values year over year, reducing drift and maintaining the integrity of the common level range.
Program Start
2013 (Monmouth County)
Oversight
NJ Division of Taxation
Setting the Record Straight
"ADP is just a pilot program"
False. The ADP was never a pilot program. The only "pilot" referenced in statute concerned a separate Gloucester County county-based assessment program. There is no five-year sunset or "experiment" period. The law requires reporting to the Governor and Legislature after four full tax years — not termination.
"20 counties reviewed and rejected the program"
False. State law limited participation by statute: no more than two counties in the first two tax years, and no more than two additional counties in the following two years. It was legally impossible for all 21 counties to "review and reject" the program. Only counties meeting strict statutory criteria can apply.
"Towns opted out because the program was flawed"
Misleading. Only a small number of municipalities temporarily opted out in 2013. Nearly all were later ordered by the State to complete revaluations and return to annual reassessment. There is no longer any opt-out provision. Opt-outs reflected policy decisions, not proof of system flaws.
Freeze Act protections remain intact
The ADP does not eliminate Freeze Act protections. The New Jersey Tax Court has repeatedly confirmed that the Freeze Act applies in Monmouth County, including in Tartivita v. Borough of Union Beach (2019). Claims otherwise are legally incorrect.
Annual Reassessment Across New Jersey
While Monmouth County is the only county operating under the ADP statute, annual reassessments are not unique:
of NJ municipalities now conduct annual reassessments (up from 20% in 2023)
of NJ municipalities are out of constitutional compliance and need revaluation
Long-standing examples:
- Somerset County: ~76% of parcels under annual reassessment for over 40 years
- Bergen County: 34–40% of parcels
- Hunterdon County: 23–27% of parcels
- Sussex County: grew from 8% (2023) to 21%
What Annual Reassessment Changes
Keeps Ratio Near 100%
Annual updates maintain the average ratio close to 100%, keeping the corridor wide (85%-115%).
Prevents Appeal Exposure
Commercial properties at 100% stay inside the corridor, eliminating Chapter 123 appeal risk.
Gradual Tax Shifts
Instead of sudden shifts at revaluation, changes happen incrementally each year.
Lower Long-Term Cost
~$28/parcel annually vs. $140-170/parcel for periodic revaluation, plus no borrowing costs.
Metrics That Matter
Lower = more uniform assessments. ADP municipalities typically achieve COD <10%.
Maintaining ratio near 100% keeps the corridor at its widest (85%-115%).
Measures vertical equity. Values near 1.00 indicate fair treatment across price ranges.
Monmouth County: ADP in Action
Monmouth County pioneered the ADP program in New Jersey. See which municipalities participate and how tax bills have changed across the county.
View Monmouth Map