Anthony F. Dellapelle presented on the impact of Covid-19 on property taxes in New Jersey. He discussed how assessments are analyzed and tax appeal procedures. The pandemic has impacted valuations for some commercial properties like retail and nursing homes that have suffered under restrictions. However, residential properties and warehouses have increased in value. Covid-19 economic impacts may be evidence in 2021 tax appeals but it is unclear if conditions are temporary or a long-term change. Procedures for tax appeals have adapted with virtual hearings and uncertainty around future filing deadlines and trial schedules.

1. Contact Name
Title
Phone
Email
Presented by:
ANTHONY F. DELLAPELLE, ESQ., CRE®
Morris Plains, New Jersey
973-539-8900
www.mrod.law
Impact of Covid-19 on Property
Taxes in New Jersey

2. Who are we?
MROD has concentrated on real estate value litigation, especially eminent domain and
real estate tax appeals since its founding in 1967. Members of the firm participate on the
faculties of continuing legal education seminars at the state and national levels, and the
firm maintains a state-wide practice in both eminent domain and real estate tax appeals.
MROD has been involved in virtually every type of condemnation and real estate tax
appeal imaginable, such as super-regional shopping malls, quarries, airports, office parks,
hotels, houses of worship, theme parks, corporate headquarters, nursing homes,
manufacturing facilities, condominiums, banks and retail operations.
Visit our Tax Appeal and Condemnation Blogs at:
www.realestatetaxappeals.com
www.njcondemnationlaw.com

3. Our presenter:
ANTHONY F. DELLA PELLE, CRE® (adellapelle@mrod.law) is a co-owner of McKirdy,
Riskin, Olson & DellaPelle, P.C. He limits his law practice to eminent domain, redevelopment and
real estate tax appeal matters. He is a Certified Civil Trial Attorney by the New Jersey Supreme
Court and is one of approximately 50 practicing attorneys around the world who has received the
CRE® designation. Over the course of this 30+ year legal career, he has served as special tax
appeal counsel to municipalities, lectures regularly regarding tax appeal, eminent domain and
redevelopment issues in New Jersey and nationally, and has published articles in these legal areas
in the New Jersey Law Journal, the American Bar Association, the Counselors of Real Estate’s Real
Estate Issues magazine, and various other professional publications.

4. REAL PROPERTY TAX APPEALS
IN NEW JERSEY
• Analyzing the Assessment and the Application of Chapter 123
• Procedures and Deadlines
• Valuation Issues Generally
• Impact of Covid-19 on Tax Appeal Cases and Value

5. Assessments are not always what they seem…
Two identical hypothetical assessments can indicate different values:
Morris Twp. East Hanover
Land $500,000 $500,000
Improvement $500,000 $500,000
Total $1,000,000 $1,000,000
Implied
Market Value: $1,000,000 $1,353,000

6. Why?
Because of the equalization ratio
(ratio of assessed value to market value)
Morris Twp. – 93.92% (effectively 100%)
To win an appeal must demonstrate a market value less than the assessed value.
East Hanover – 73.91%
This results in an equalized value or implied market value of $1,353,000, but to
win an appeal you must not only demonstrate market value below the equalized
value, but less than the Upper limit Value.

7. What is the Upper Limit Value? It is a
Statutory Cushion, sometimes referred to as
the 15% Corridor
• Assessment $1,000,000
• Equalized Value $1,353,000
($1M/73.91%)
• Upper Limit $1,176,500
($1M/85%)

8. Morris County Ratios

9. Reverse Appeals
• Appeals by municipality seeking an increase in the assessment.
• Such actions being pursued in a number of larger cities, such as
Newark, Elizabeth and Jersey City.
• Have proposed similar efforts in Morris County.

10. It is critical to know WHEN
and WHERE to file a tax appeal.
April 1 of tax year to be appealed, except for
municipalities that have undergone revaluation or
reassessment the deadline is May 1.
Must file with County Board of Taxation or may go
directly to NJ Tax Court if assessment over
$1,000,000.00
*Filing deadlines vary in certain counties
such as Burlington, Gloucester and Monmouth.

11. Payment of Taxes Pending Appeal
At time of filing Complaint with County Board of
Taxation, or Tax Court, all taxes and municipal
charges must be paid up to and including first
quarter of year under appeal.
Strictly construed.

12. Request for Income Information by Assessor
Pursuant to N.J.S.A. 54:4-34 (Chapter 91)
Sent by Assessor before assessments are placed on property.
Must be sent to owner by Certified Mail and must include
copy of Statute.
Failure of owner to respond w/in 45 days may result in
dismissal of appeal.
Statute strictly construed by courts!

13. Why file?
Lincoln Park Industrial
Assessment: $17,990,800
New Assessment: $14,300,000
Refund: $249,400
Annual Tax Savings: $35,000
Hanover Flex/Office
Assessment: $2,222,000
New Assessment: $1,875,000
Refund: $12,000
Annual Tax Savings: $6,000
Edison Automobile Dealership
Assessment: $2,643,000
New Assessment: $2,116,000
Refund: $108,815
Annual Tax Savings : $29,107
Allamuchy Office
Assessment: $2,004,000
New Assessment: $1,420,000
Refund: $16,050
Annual Tax Savings : $16,050

14. Residential Appeals
Sparta
Assessment: $1,166,000
New Assessment: $900,000
Tax Refund: $34,995
Randolph
Assessment: $651,300
New Assessment: $515,600
Tax Refund: $4,900
Morris Township
Assessment: $1,055,000
New Assessment: $869,800
Tax Refund: $4,700
Denville
Assessment: $642,800
New Assessment: $527,000
Tax Refund: $3,610

15. Covid-19
• COVID-19 has caused major changes in our way of life
and has impacted professions such as appraising and the
practice of law. We are now in uncharted waters.
• Appraisers and Attorneys must adapt to new
technologies and procedures.

16. Procedural Impacts:
• Most public buildings are open on a limited basis with
reduced staff and/or on a staggered basis. It is not certain
when these buildings will resume full operations. There are
no live tax appeal trials presently scheduled in the Tax Court
for the foreseeable future.
• Most County Boards of Taxation conducted hearings by
virtually (e.g., Zoom or telephonically) although some, such
as the Morris County Board, saw fit to
conduct in person proceedings last Fall.

17. Filing Deadlines
While tax appeal filing deadline were extended several
times last year we have not received any indication that
will be the case this year. So, as of today, the deadline to
file an appeal for 2021 will be April 1st unless there is
town-wide reassessment or revaluation in which case the
deadline is May 1st.

18. Valuation Issues
• The pandemic has had a drastic impact on some sectors
of the real estate market, e.g., nursing homes, shopping
centers, restaurants, personal service establishments and
other retail and commercial properties.
• These types of properties have generally suffered greatly
due to the governmental restrictions imposed as the
result of the general health crisis caused by the
pandemic.

19. Its not all bad news (from a real estate perspective)
Other areas of the real estate market have not suffered as
much from the pandemic and may even have seen an
increase in value. In particular we have seen rising
values for single family homes and warehouse
(eCommerce) facilities.

20. • How should Covid-19 economic impacts be handled for
tax appeal purposes? Are they admissible evidence in a
2021 appeal?
• As of October 1, 2020, we were in a state of flux.
Businesses were worrying about another round of
restrictions as the cold weather set in.
• Since that time two surges due to colder
weather and Holiday gatherings.

21. • These events may be good evidence for a 2021 appeal
which has a value date of October 1, 2020 but is it just a
temporary condition or aberration which should be
stabilized in valuing the property?
• How long will it take for economy and real estate
market to recover once current health crisis is over?
What will a reasonable buyer and seller consider?
• Will things ever be “normal” again?

22. Contact Name
Title
Phone
Email
THANK YOU!
ANTHONY F. DELLAPELLE, ESQ., CRE®
MCKIRDY, RISKIN, OLSON & DELLAPELLE P.C.
Morris Plains, New Jersey
973-539-8900
www.mrod.law
adellapelle@mrod.law