Property TaxesPart 4 – Revaluation

Property Taxes
Part 4 – Revaluation

This is the fourth in a series of articles by the Short Hills Association on property taxes and the revaluation process. This article specifically focuses on the revaluation process itself and what residential property owners should know and expect. Millburn Township is scheduled for its next revaluation in 2029 though the planning is already underway.

Revaluation

Revaluation is a county-mandated process, initiated by the County Board of Taxation, with a goal of adjusting the assessed value of every real estate parcel within a municipality to reflect current full market (or “true”) value. The purpose is not to raise more tax revenue, but instead to ensure that every property owner pays only their fair, proportional share of the tax burden based on what their property is actually worth in the current real estate market. Over time, property values in different neighborhoods fluctuate at varying rates. Some areas appreciate rapidly, while others stagnate or decline; the goal is to bring them back in line.

The revaluation process is coordinated by the municipal tax assessor’s office with property valuations conducted by a professional appraisal firm licensed by the State of New Jersey. The municipality is required to select one of a handful of State-certified firms.

How it Works and How Home Values Are Determined

The revaluation processes rely on rigorous data collection inspection process and localized market analysis, generally spanning a period of 12 to 18 months, with market sales data going back as far as 3 years with more weight on recent sales.

Inspection Process

An inspection process is performed by authorized field inspectors. They visit every property and gather data on property characteristics and surroundings. Attempts are made to inspect the interiors and exteriors of every property. They measure exterior dimensions of the home and other improvements (like decks, pools, etc.), document the style of the home, note the number of rooms and bathrooms, evaluate the condition of the structure, and record finished basements or attics. They may also document other aspects, like proximity to schools, trains, and commercial property that impact property value.

Market Analysis

Appraisers analyze recent “arms-length” property sales within the municipality. An arms-length transaction is a sale between a willing buyer and a willing seller on the open market, excluding distressed sales like foreclosures or family transfers.

Valuation Modeling

Neighborhoods are categorized into specific market zones based on location, such as, school districts, and proximity to amenities like transit hubs. Appraisers use the collected property data and recent sales figures to build valuation models. Residential properties are valued using the Sales Comparison Approach, which estimates what a property would sell for by comparing it to similar, recently sold homes in the immediate area.

Mass appraisal of residential properties utilizes a hybrid approach. The land is valued using an abstraction method (land value is extracted from improved sales by removing the contributory value of the improvements) as well as using recent vacant land transactions (if they exist). The improvements are valued using a cost approach. The final value (land+improvements) is statistically reconciled against recent sales to make sure they are reasonable.

What Residential Property Owners Can Expect

When Essex County municipalities are ordered to undergo a Revaluation, homeowners can anticipate a structured, multi-stage timeline.

1. Notification Letters: Property owners receive official mail introducing the revaluation firm and detailing the upcoming schedule.
2. Field Inspections: Inspectors will visit the property. They carry a company ID and are often registered with local police departments for security. Interior inspections take roughly 15 to 30 minutes.
3. Value Notice: Once the data is analyzed, homeowners receive a “Notice of Expected Assessment” (typically in late autumn or early winter). This letter states the new assessed value of the property.
4. Tax Impact Realization: The new assessments do not take effect immediately. They apply to the following tax year. It is vital to understand that a higher assessment does not automatically mean higher taxes. Because the overall town-wide assessment base is likely to increase, the municipal tax rate will likely drop in a similar proportion.

Historically revaluations will result in some property owners seeing an increase, some seeing a decrease, and some unchanged. This is due to the uneven change in value for properties in different areas of town or the changes in the condition of individual properties.

How to Interact with the Assessor and Inspectors

Cooperation and transparency are the best strategies when interacting with valuation professionals. Homeowners are strongly encouraged to allow inspectors inside their homes. Denying entry does not stop the revaluation. If denied access, the appraisal firm is legally permitted to estimate the interior condition of your home. Estimates assume the interior is fully modernized or in peak condition, which may not reflect the actual condition of the interior.

When interacting with inspectors or the municipal assessor:

• Be Polite and Objective: Avoid emotional complaints about property tax rates, as the inspectors do not set the tax rates.
• Provide Facts: Highlight hidden structural issues, wet basements, or aging mechanical systems (like a failing HVAC system) that reduce market value.
• Review the Record: Request to see the property record card to ensure basic facts—like the number of bedrooms, bathrooms, or square footage—are accurate.

How a Property Owner Can Challenge the Assessment

If you receive your new assessment notice and believe the value is higher than what your home could realistically sell for on the open market, you have legal avenues to challenge it.

Step 1: Informal Hearings

Immediately after notices are mailed, the revaluation firm holds informal hearings. This is your first and most accessible opportunity to correct errors. You can meet with a representative of the appraisal firm, review your property record card, and present evidence—such as recent sales of identical homes or proof of structural defects—to argue for a lower value. The firm, in consultation with the assessor, can adjust the assessment based on this meeting.

Step 2: Formal Tax Appeal

If the informal hearing does not yield a satisfactory result, you can file a formal tax appeal.

• Where to File: Appeals can be filed with the Essex County Board of Taxation and assessments greater than $1 million can be filed directly to the State Tax Court.
• Deadline: The deadline for standard filing is May 1st (or 45 days from the date the notification of assessment postcard is mailed, whichever is later).
• The Burden of Proof: The burden of proof rests entirely on the homeowner. You cannot simply argue that your taxes are “too high.” You must prove that the municipal assessment does not reflect true market value.
• Evidence Required: The Taxation Board suggests 3-5 sales credible, arms-length comparable sales of similar homes in your neighborhood that sold close to the statutory assessment date (October 1st of the prior year). But depending on the circumstances, less or more may be warranted. Assessments of neighboring properties are not admissible evidence; only actual sales prices can be used.

Reassessment – How it Differs from Revaluation

While “revaluation” and “reassessment” are often used interchangeably, they represent distinct administrative processes under New Jersey tax law. The differences between revaluation and reassessment are: 1.) the manner in which they are initiated and, 2.) how the valuation process is managed.

Reassement is initiated and managed by the municipality again with the goal of updating all assessed property values. The municipality may use a combination of their own professional staff as well as external resources. While they are not limited to the state specified appraisal firms, the proposed reassessment process must be approved by the County Board of Taxation. In a reassessment, the municipality may choose to inspect less than 100% of the properties in a given year. This occurs, for example, when a town or county moves to a yearly Assessment process in which assessed values are updated every year.

In response to a county-initiated revaluation, a municipality may propose instituting a reassessment instead.

Summary

Current plans call for a 2029 Revaluation in Millburn Township. A revaluation is an essential administrative tool used to ensure property tax fairness. It does not exist to generate more money for the local government, but rather to realign assessed values with the realities of the current real estate market. By allowing property inspections, verifying data accuracy on your property card, and understanding how to effectively present market evidence during the appeal windows, residential property owners can actively protect their financial interests and guarantee they pay only their fair share of the community’s tax burden.

For more information:

NJ – What is Revaluation
NJ – Standards for Valuing Property
NJ Division of Taxation Statistical Data
Essex County Board of Taxation
2025 NJ Municipal Tax Rates
NJ Table of Equalized Valuations
NJ DCA Property Tax Data
Essex County Budget
Patch County Budget Article
Previous Property Tax Articles
Short Hills Association