There are two components of tax - the assessed value of the property and the tax rate. The tax rate is also known as the millage rate as well.
For example, if you had a property assessed at $100,000 and property tax was 10%, you would pay property tax of $10,000 per year.
The New Jersey State Law
basically says you can't change the 10% portion to greater than 12% without a vote.
There's nothing in the law that says you cannot take the $100,000 property and assess the value at $200,000, which would double the amount of property tax paid - but would not be because of a rate increase.
Raising the value of the property is a creative way your town is getting around the state's law. If your property is worth less than the taxing authority says it is worth, you can fight the appraisal with your taxing board and get them to lower your assessed value to the fair market value.
If they refuse, you could file a complaint with the state Attorney General.
Please let me know if you need further clarifications.
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