N.J. Admin. Code § 18:12-1.1

Current through Register Vol. 56, No. 9, May 6, 2024

Section 18:12-1.1 - Categories enumerated

(a) The following deed transactions are not usable in determining assessment-sales ratios pursuant to N.J.S.A. 54:1-35. 1 et seq.:

1. Sales between immediate family members;

2. Sales in which "love and affection" are stated as part of the consideration;

3. Sales between a corporation and its stockholder, its subsidiary, its affiliate, or another corporation whose stock is in the same ownership;

4. Transfers of convenience; for example, transfers correcting defects in title, a transfer by a husband either through a third party or directly to himself and his wife for the purpose of creating a tenancy by the entirety, etc.;

5. Transfers that did not occur within the sampling period. Sampling period is defined as the period from July 1 to June 30, inclusive, preceding the date of promulgation of the Director's Table of Equalized Valuation, except as otherwise stated. The recording date of the deed within this period is the determining date since it is the date of official record. Where the date of deed or date of formal sales agreement occurred prior to January 1, next preceding the commencement date of the sampling period, the sale shall be nonusable;

6. Sales of property conveying only a portion of the assessed unit, for example, a parcel sold out of a larger tract where the assessment is for the larger tract, usually referred to as subdivisions, split-offs, or cut-offs;

7. Sales of property substantially improved subsequent to assessment and prior to the date of sale;

8. Sales of an undivided interest in real property;

9. Sales of property that are subject to an outstanding Municipal Tax Sales Certificate, a lien for more than one year in unpaid taxes on real property pursuant to N.J.S.A. 54:5-6, or other governmental lien;

10. Sales by guardians, testamentary trustees, executors, and administrators;

11. Judicial sales such as partition sales;

12. Sheriff's sales;

13. Sales in proceedings in bankruptcy, receivership, or assignment for the benefit of creditors, dissolution or liquidation sales, and short sales;

14. Sales of doubtful title including, but not limited to, quit-claim deeds;

15. Sales to or from the United States of America, the State of New Jersey, or any political subdivision of the State of New Jersey, including boards of education and public authorities;

16. Sales of property assessed in more than one taxing district;

17. Sales to or from any charitable, religious, or benevolent organization;

18. Transfers to banks, insurance companies, savings and loan associations, mortgage companies, or other financial institutions when the transfer is made in lieu of foreclosure;

19. Sales of property for which assessed value has been or is substantially affected by demolition, fire, documented environmental contamination, or other physical damage subsequent to assessment and prior to the date of sale;

20. Acquisitions, resale, or transfer by railroads, pipeline companies, or other public utility corporations for easements or right-of-way purposes;

21. Sales of low/moderate income housing as established by the Council on Affordable Housing;

22. Transfers of property in exchange for other real estate, stocks, bonds, or other personal property;

23. Sales of commercial or industrial real property, which include machinery, fixtures, equipment, inventories, licenses, or goodwill when the values of such items are indeterminable;

24. Sales of property, the value of which has been or is substantially influenced by zoning changes, planning board approvals, variances, or rent control provisions subsequent to assessment and prior to the sale;

25. Transfers in which the full consideration as defined in the "Realty Transfer Fee Act" is less than $ 100.00;

26. Sales that for reasons other than specified in the enumerated categories are not considered to be between a willing, knowledgeable buyer, not compelled to buy, and a willing, knowledgeable seller, not compelled to sell;

27. Sales occurring within the sampling period but prior to a change in assessment resulting from a recognized revaluation or reassessment, that is, sales recorded during the period July 1 to December 31 next preceding the tax year in which the revaluation or reassessment value is placed on the tax roll;

28. Sales of property subject to leaseback arrangements;

29. Sales of property subsequent to the year of appeal, where the assessed values are set by court order, consent judgment, or the "Freeze Act";

30. Sales in which multiple parcels are conveyed collectively as one transaction with an arbitrary allocation of the sale price of each parcel;

31. First sale after foreclosure by a Federal- or State-chartered financial institution;

32. Sales of a property in which an entire building or taxable structure is omitted from the assessment; and

33. Sales of qualified farmland or currently exempt or abated property.

(b) Transfers within the foregoing category numbers 1, 3, 9, 10, 15, 17, 26, and 28 (under (a) above), should generally be excluded but may be used if after full investigation it clearly appears that the transaction was a sale between a willing buyer, not compelled to buy, and a willing seller, not compelled to sell, with all conditions requisite to a fair sale with the buyer and seller acting knowledgeably and for their own self-interests, and that the transaction meets all other requisites of a usable sale.

N.J. Admin. Code § 18:12-1.1

Amended by 50 N.J.R. 664(a), effective 1/16/2018