can taxes be waived off or reduced?

Question

Dear members, I'm looking at a commercial property in central NJ which has been vacant for a while. The taxes are currently $10k/yr for 1500sft. The agent advised that I ask an attorney to file a request w/ town to waive off the taxes or reassess to reduce them because they're exorbitant. Is this possible? Does it actually work? Considering the property has been vacant for more than a year the advice makes sense but I'm not sure how practical it is to accomplish reducing taxes. If anyone has addressed such a situation, kindly advise so I can perform due diligence using right assumptions. TIA

Vidyadhar R. · Answer

Thank you all very much for your response and advice. I don't own the property but I'm analyzing it and want to make sure if a tax reduction is allowed to determine feasibility of purchase. To my knowledge taxes have been paid till date.

@Alecia Loveless thanks for sharing your experience. Any ideas on how to go about my search for such an attorney? I'm planning to start checking w/ agents I know. TIA.

Alecia Loveless · Answer

@Vidyadhar R. I’ve hired a tax abatement specialist here in New Hampshire to fight mine for me before. He was also a real estate investor so was familiar with how our state system ran. In New Hampshire you first appeal at the town level and then if you think you should have gotten a bigger abatement you go to the state level. My guy did all the work and research and charged 25% of your initial tax bill savings for the town level and if you weren’t satisfied he charged 50% of the savings on the first tax bill of what he got off from fighting your taxes at the state level.

It was worth having a professional do this for us as we saved $3500 off a $10000 tax bill. We only reassess about every 6-7 years so my savings was considerable.

I doubt you will get an abatement on already owed taxes and I don’t know if NJ reassesses on purchase but if you can get a professional to fight it for you reasonably and it will last for several years I recommend it!

David M. · Answer

@Vidyadhar R.

Sounds like you are asking about Appealing your Tax Assessment.  Sure its common, but it only works when you are realistic about your valuation/outlook.  I have no idea what sort of property it is, but $10k in the northern market would/could be a steal.

Since its commercial, its probably best to work with an attorney that specializes in this and has the resources to properly prepare the appeal.  I believe appeals are usually done at the County level in the summer timeframe.  Furthermore, I'm not so sure you can do anything since you say are your interested in it, i.e. you don't own it.

Good luck.

Wayne Brooks · Answer

I’ve never seen a city/county waive or reduce taxes already owed.

Cason Acor · Answer

Disputing property tax assessments is very common. People do it all the time. But you’ll get the best answers from a New Jersey attorney who is familiar with both the municipality and property so that you can underwrite accordingly.