Searching for information about New Jersey’s business personal property tax? You can stop looking: The state has no business personal property tax to speak of. At least, that’s the case for the majority of New Jersey companies. Keep reading to find out if one of two exceptions might apply to you, and for some general information about New Jersey real property tax as well.
New Jersey Business Personal Property Tax: The Exceptions
Prior to 1993, there was a New Jersey business personal property tax. Since its repeal, only two types of personal property still remain subject to tax:
- Machinery, apparatus, or equipment directly used in refining petroleum. (Machinery, apparatus, or equipment located on the grounds of a petroleum refinery but which are not directly used to refine crude oil into petroleum products are excluded.)
- Tangible goods (exclusive of inventories) and chattels used in the business of local exchange telephone, telegraph and messenger systems, companies, corporations, or associations that were subject to tax as of April 1, 1997 (under Chapter 4, Laws of 1940), and the tangible goods and chattels, including but not limited to small cell network nodes, of wireless telephone companies.
Very few businesses are impacted by these business personal property tax instances, so New Jersey is widely considered a state that does not tax personal property. (Tweet this!)
Companies who use machinery, apparatus, or equipment used in refining petroleum will need to complete Form PT-10-1. Assessments are on property owned as of January 1 the previous year; the due date for PT-10-1 is September 1.
Telecommunications carriers that provide dial tone and access to 51% of a local telephone exchange as well as telegraph and messenger service businesses will need to complete Form PT-10. Assessments are on property owned as of January 1 the previous year; the value of that property equals its original cost less depreciation, which cannot be less than 20% of the original cost as long as the property is being held. The due date for PT-10 is September 1.
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New Jersey Real Property Tax
All real property in New Jersey (unless expressly exempted) is subject to tax. (Real property refers to the land and property integrated with or affixed to the land.)
The standard measure of the value of real property is its “true value” or market value—what a “willing, knowledgeable buyer would pay a willing, knowledgeable seller on the open market at a bona fide sale as of the statutory October 1 pretax year assessment date.”
For an assessed value to be considered unfair, you must show that it either does not accurately represent true market value, or it does not meet the “common level range”—the annually derived average ratio representing the assessment level in the community in which your property is located. If the ratio of assessed value to true value exceeds the average ratio by 15%, the assessment is reduced to the common level. If the assessment falls within this common level range, no adjustment is made; if the assessed value exceeds this range, it must be increased to the common level. The annual assessment date for New Jersey is 10/1; appeals must be filed within 45 days of the mailing of the assessment notice (generally April through June). Appeals must be received (not only postmarked) by the appeal deadline. Also, appeal filing fees vary based on assessed valuation and classification.
Property tax bills contain four quarterly payments:
- Installment 1 due 2/1.
- Installment 2 due 5/1.
- Installment 3 due 8/1.
- Installment 4 due 11/1.
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