LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 4909
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: DECEMBER 12, 2025
SUMMARY
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Synopsis: |
Increases property tax assessment appeal filing fees. |
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Type of Impact: |
Annual increase in county revenues. |
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Agencies Affected: |
County boards of taxation. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Calendar Year 2026 & Thereafter |
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Annual County Revenue Increase |
$620,000 to $700,000 |
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· The Office of Legislative Services (OLS) estimates that the bill will increase annual county revenues by approximately $620,000 to $700,000 beginning in calendar year 2026.
· The OLS estimates that property tax assessment appeal filing fees generated $830,000 to $975,000 in annual county revenues from calendar years 2022 through 2025. If the fee schedule proposed by the bill had been in effect during that time, counties would have collected $1.45 million to $1.65 million in property tax appeal filing fee revenues.
· Data available through the Department of the Treasury indicates that taxpayers filed 13,800 to 15,300 fee-generating property tax assessment appeals annually in calendar years 2022 through 2025. This estimate assumes that the number of property tax appeals will remain within this range.
BILL DESCRIPTION
This bill increases the fees to be paid when filing an appeal of a property assessment or classification with a county board of taxation. These fees were last increased in 1979.
The bill increases the fees as follows:
(1) if the assessed valuation of the property under appeal is less than $150,000, the fee is increased from $5 to $25;
(2) if the assessed valuation of the property under appeal is $150,000 or more but less than $500,000, the fee is increased from $25 to $75;
(3) if the assessed valuation of the property under appeal is $500,000 or more but less than $1 million, the fee is increased from $100 to $150;
(4) if the assessed valuation of the property under appeal is $1 million or more, the fee is increased from $150 to $200;
(5) if the appeal involves only the classification of property, the fee is increased from $25 to $75 for each parcel of property sought to be reclassified; and
(6) if an appeal is not related to the assessed valuation of the property, the classification of the property, or both, the fee is increased from $25 to $75.
Under current law, counties are required to use the revenues generated by appeal filing fees to support the operations of the county boards of taxation.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that the bill would increase annual county revenues by $620,000 to $700,000 beginning in calendar year 2026 associated with the collection of increased fees from taxpayers who file property tax assessment appeals.
Using data available through the Division of Taxation in the Department of the Treasury, the OLS concludes that total county revenues from the collection of property tax assessment appeal filing fee revenues ranged from about $830,000 to $975,000 in calendar years 2022 through 2025. During this period taxpayers filed roughly 13,800 to 15,300 fee-generating appeals annually. This estimate assumes that the number of property tax assessment appeals will remain within this range.
If the fee schedule proposed by the bill had been in effect during calendar years 2022 through 2025, filing fee revenues would have ranged from $1.45 million to $1.65 million, or $620,000 to $700,000 higher than under the current fee schedule. The bill does not change the purposes for which property tax assessment appeal filing fees are required to be used. To the extent that the bill results in increased filing fee revenues, county boards of taxation will be less reliant on other sources of county revenues, including the property tax, to support their operations.
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Section: |
Revenue, Finance, and Appropriations |
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Analyst: |
Staff Fiscal and Budget Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).