Reverse Tax Appeals Continue to Impact New Jersey Commercial Property Owners

As many active real estate participants in New Jersey are aware, several taxing jurisdictions file “reverse tax appeals” against commercial property owners whose assessments appear to be low relative to the real estate market. These jurisdictions track property sales, specific asset types (e.g., industrial), and other information to gauge potential opportunities to seek higher commercial property valuations and boost their real estate tax revenues.

The number of townships that file “reverse tax appeals” has continued to increase. Several townships in Camden County, including Bellmawr Borough, Gloucester Township, and Voorhees Township have approved hiring a law firm (Blau Blau) to sue commercial property owners for the 2022 tax year. We anticipate the law firm will be expanding its business model to many areas of the state, as townships search for avenues to close budgetary gaps.

This is an expected trend of seeking “revenge” on the commercial taxpayer base for being diligent about monitoring their values and subsequent tax obligation. New Jersey commercial property owners should be prepared to defend reverse appeals. Once you receive correspondence from a municipality or Blau Blau, you have 20 days from the date of appeal to file a counter claim.

If you would like more information or assistance in defending against a reverse tax appeal, please don't hesitate to contact Kurt Lieberman or Andrew Sinclair.