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.
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
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!
