Changes to Statute Requiring Payment of Taxes Pending Appeal Being Considered

Name: McKirdy & Riskin, P.A.
Address: 136 South Street, Morristown, NJ, 07850
Telephone: 973-539-8900

Home » Property Tax Appeal » Changes to Statute Requiring Payment of Taxes Pending Appeal Being Considered

by: Anthony F. Della Pelle

24 Oct 2011

The New Jersey Law Revision Commission has issued a final report recommending to the Legislature that it amend N.J.S.A. 54:3-27, which is the statute that requires payment of taxes at the time of filing a property tax appeal. This recommendation is in response to the 2009 decision of the Tax Court in Trebour v. Randolph, 25 N.J. Tax 227 (N.J. Tax Ct. 2009).

The statute currently states that “[a] taxpayer who shall file an appeal from an assessment against him shall pay to the collector of the taxing district no less than the total of all taxes and municipal charges due, up to and including the first quarter of the taxes and municipal charges assessed against him for the current tax year. . . .” In Trebour, the Township argued that under a literal reading of this language, the taxpayer had to be current on taxes owed on all properties in the Township. There, the taxpayer filed appeals on two contiguous lots. There was a substantial tax arrearage on one lot. In response to the Township’s motion to dismiss both appeals under N.J.S.A. 54:3-27, the taxpayer withdrew the appeal on the lot with the tax arrears. Notwithstanding the withdrawal of that appeal the Township sought to have the appeal on the adjoining lot, with no tax arrears, dismissed under N.J.S.A. 54:3-27.

The Tax Court found that the statute was unclear as to whether a taxpayer appealing an assessment is required to pay taxes on all properties, as the Township argued, or only those taxes due on the property that is the subject of the pending appeal, as the taxpayer contended. Relying on its construction of presumed legislative intent, the court held for the taxpayer. The court concluded that an “assessment,” as used in statute, generally entails the assessment of a specific parcel. Moreover, the court relied on case law that supports the long-held policy that property taxes are levied against property, not persons, contrary to the Township’s literal reading of the phrase “assessed against him” contained in the statute.

The Law Revision Commission’s report, approved October 21, 2011, recommends revisions to codify the Trebour court’s reading of statute and update the statute’s “arcane language.” The recommendation of the Law Revision Commission will be presented to the State Legislature for consideration.

McKirdy & Riskin’s Richard P. DeAngelis, Jr. served as special property tax counsel to the Township of Randolph in the Trebour matter.