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Constitutional Foundation
New Jersey Constitution, Article VIII — Taxation and Finance
Section I, Paragraph 1(a)
"Property shall be assessed for taxation under general laws and by uniform rules. All real property assessed and taxed locally or by the State for allotment and payment to taxing districts shall be assessed according to the same standard of value, except as otherwise permitted herein, and such real property shall be taxed at the general tax rate of the taxing district in which the property is situated, for the use of such taxing district."View NJ Constitution
Official Guidance
New Jersey Assessor's Handbook
NJ Division of Taxation — Chapter 9: Reassessment/Revaluation Programs (July 2024)
§903.01 The Need for Reassessment/Revaluation
Reassessment/revaluation may be needed when properties in a taxing district are not being assessed at the same rate of true value and/or are being assessed substantially below or above true market value.
§903.02 Reassessment vs. Revaluation
A revaluation is performed by an outside professional appraisal firm hired by the municipality. A reassessment is done by the municipal assessor and staff. Both seek to spread the tax burden equitably throughout a taxing district.
§903.04 Assessment-Sales Ratio
The Sales Ratio Program is a two-year averaging study conducted annually by the Division of Taxation. A Director's Ratio of 85% or less may denote noncompliance. A continual decline from the 100% level shows a lack of assessment maintenance.
§903.05 Coefficients of Deviation
The current acceptable figure for Coefficients of Deviation is 15%, although some authorities advocate 10% in light of improved assessment practices. A higher COD indicates poorer uniformity and a likely need for reassessment/revaluation.
§903.06 Neighborhood and Zoning Changes
Changes in uses permitted by zoning may substantially increase or decrease the value of property. Per N.J.S.A. 54:4-23.24, property in a designated residential zone valued as residential for at least 3 years must continue to be assessed as residential if the owner continues to occupy it as their principal residence after rezoning.
§903.07 Lack of Adequate Records
Inadequate records, such as property record cards, may indicate the need for reassessment/revaluation. The absence of essential information impedes the maintenance of an Assessment List and contributes to non-uniform assessment.
§903.08 Year of Last Revaluation
A revaluation or reassessment that has not taken place in a municipality for ten years or more may be a factor in ordering a revaluation/reassessment.
§903.09 Revenue Lost Due to Appeals
The extent of revenue lost by a municipality due to adjustments in assessed values as a result of appeals may indicate a need for reassessment/revaluation. (Ref: N.J.A.C. 18:12A-1.14(b) ix thru xii)
Primary Law & Definitions
ADP Program
Independent Studies & Awards
Tax Bill Calculation
State Programs
Historical Context: Decades of Study
The problems aren't new. Official state commissions have documented the same structural issues for over 50 years. Technical solutions exist — political feasibility has been the barrier.
NJ Tax Policy Committee Q&A on Property Tax Reform
Early documentation of NJ's property tax challenges. The issues identified — overdependence on property tax, uneven assessments, school funding burden — remain unresolved today.
View Document (PDF)Local Budgetary Limitations Review Commission
Examined caps, limits, and the structural constraints on local government finance in New Jersey.
View Document (PDF)Property Tax Assessment Commission Report
Acknowledged significant problems with how NJ's property tax is imposed and administered. Noted that property taxes raised over $5.5 billion annually — by 2024, the levy reached $34.5 billion. The first conclusion: "New Jersey is a high property tax state."
View Document (PDF)OLS Background Report: Options for Replacing Local Property Taxes
Office of Legislative Services analysis of NJ's heavy reliance on property tax compared to other states. Examined various swap/relief options including replacement with income and sales tax revenue.
View Document (PDF)Joint Legislative Committee on Public School Funding Reform
Final report examining school funding structure and its impact on property taxes. School levies remain the single largest driver of property tax growth.
View Document (PDF)Recurring Themes Across 50+ Years
- • Overdependence on property tax — Nothing structural has changed in NJ's revenue model
- • Uneven assessments — A crisis in 1972, 1986, and still today in towns without modern reassessment
- • School funding structure — Consistently identified as the largest driver of property tax growth
- • Home-rule fragmentation — Makes shared services and consolidation difficult
- • Political resistance — All commissions acknowledge "technical solutions exist, but political feasibility is the barrier"
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