This formula is utilized for ESTIMATING property taxes. The Actual Assessment will be determined by the Assessor upon inspection of the property and once all the necessary data is collected.

Total Sale Price* X Director’s Equalization Ratio = ESTIMATE assessment

ESTIMATE assessment X tax rate = ESTIMATE taxes

example:

$300,000 x 51.08% = $153,240

$153,240 x $4.74 (2007 rate) = $7,263.58

This formula changes annually depending on the Director's Equalization Ratio and the current year tax rate.

*The Total Sale Price is the Market Value of the property including any and all builder incentives.

Pursuant to the Constitution of the State of New Jersey, Art. VIII, Sec. 1, Para. 1 & 2, “Property shall be assessed for taxation under general laws and by uniform rules.” Real property is required to be assessed at some percentage of its true value established by the County Board of Taxation in each county. “True Value” has been defined as the full and fair value of each parcel of real property at such price as, in the judgment of the assessor, it would sell for at a fair and bona fide sale on the assessing date. The assessing date is October 1^st of the pretax year.

New Jersey's real property tax is ad valorem or a tax "according to the value" meaning each person pays tax on the value of the property he or she owns. The State Constitution at Article VIII, Section 1, Par. 1 requires that all real property, except agricultural/horticultural land, be assessed at the "same standard of value." New Jersey Statutes at N.J.S.A. 54:4-23 establish the standard of property value to be the "full and fair value" or "true value" which is defined as "the price at which, in the assessor's judgment, each parcel of real property would sell for at a fair and bona fide sale by private contract on October 1 next preceding the date on which the assessor shall complete his assessments..."