What is the 3-year rule in NJ?
What is the 3-year rule in NJ property tax?
In New Jersey, the “3-year rule” generally means the Freeze Act. If an appeal ends with a judgment that can’t be appealed further, such assessment is locked in for the tax year decided and the next two tax years.
When does this rule kick in?
It applies only after a judgment is final and not subject to further appeal — County Board or NJ Tax Court. The following items will be required:
- A judgment that sets the property’s assessed value
- No change in value after the assessment date during the freeze years
What can end the protection early?
Major improvements or other events that change the property’s value after the assessment date can allow the assessment to be adjusted. A municipal-wide revaluation or reassessment can also override the freeze.
Does the 3-year rule cut what you pay automatically?
No. Because it doesn’t lock the New Jersey property tax rate your municipality determines each year. It focuses on the assessment number used in the bill calculation.
What should you do if your assessment looks inflated?
In the case that number looks out of line, start early in order to be more organized.
- Compare the assessment to recent nearby sale prices for similar homes
- Gather supporting documents before filing
- File by the county deadline — the later of April 1 or 45 days after the bulk mailing of the Assessment Notice. In a revaluation/reassessment year, it’s generally May 1.
Get assistance from Wasserman Accounting
If you necessitate a practical review before committing, reach out to us. Our team stands ready to present support in deciding whether an appeal makes financial sense.