In these times of falling property values, many property owners are quick to file tax appeals to reduce their tax burden.
Most of these appeals have merit. However, be mindful of the fact that a municipality has the right to file a counterclaim. Also, under certain circumstances, a municipality can argue for an increase in the assessment even without having filed a counterclaim.
In a recent decision, South Brunswick Twp. v. Princeton Orchards Assocs. LLC, the town went a step further and filed its own petition of appeal, asserting that the assessor’s valuation of the property was too low. At the same time, the property owner filed a direct appeal in the Tax Court seeking a reduction of the assessment. The town failed to file a timely counterclaim to challenge the property owner’s direct case. On motion by the property owner, the town’s late filed counterclaim was dismissed. When the town lost its petition at the County Tax Board, it filed an appeal to the Tax Court. The property owner asserted that two separate cases cannot be maintained and that the town’s appeal must be dismissed. Moreover, because the town had not timely filed a counterclaim in the property owner’s direct case, the property owner argued that the town was barred from arguing for an increase in assessment in defense of the property owner’s direct case.
The Tax Court disagreed and found that although the filing of a Complaint grants to the Tax Court overall jurisdiction as to all matters, the late filing of a counterclaim should not bar the timely filing of an appeal by the town from an adverse County Board ruling. As a result, there are two cases filed for the exact same property by opposing parties which will now in all likelihood be consolidated into one action.
The result of this case highlights the fact that towns have the right to challenge an assessment just as much as property owners. It serves to caution the practitioner not to file complaints with indifference to the town’s rights and without doing your homework. Filing an appeal without proper analysis beforehand just might result in an increase to your client’s assessment- not the result for which you were hired.
Mark K. Follender is a Partner at Scarinci Hollenbeck and chair of the firm’s Real Property Tax Appeals Group, which represents private commercial property owners and municipalities throughout the State of New Jersey. Feel free to contact Mark Follender, if you would like to discuss your property tax appeal options or have questions about the article above.
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
Bringing on outside investors can provide the capital and strategic support a business needs to grow. However, raising capital also introduces important legal, financial, and operational considerations. Before bringing on investors, businesses should address key legal issues to reduce risk, streamline investor due diligence, and position the company for long-term success. Early preparation signals that […]
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
