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Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 55278
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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I have recently purchased a new construction home in

Customer Question

I have recently purchased a new construction home in Cranford, new jersey and moved into the home in May 2015. I am currently paying taxes for vacant land for the current year and reassessment of house has still not been done by township. If the township determines the correct value of house next year and sees that I am paying only for vacant land since may, will they add the retroactive taxes for current year to next year taxes?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Richard replied 1 year ago.
Hi! My name is ***** ***** I look forward to helping you!
They will not retroactively impose a tax for the current year. This is just how it works with new construction. In the year the new construction is put in place, there is always the transition from vacant unimproved land versus the new construction. And, it will be picked up when the property is reassessed. But, the taxing authorities can not go back and reassess if for the current year. The valuation is based on the value as of a specific date (usually Dec 31 or Jan 1) and the tax is based on that value. If the valuation changes mid-year, it simply is picked up for the next year.
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Customer: replied 1 year ago.
basically I only pay for vacant land for first year I own the house. I have seen in some states (like CA), they treat it as supplemental taxes and add it to existing tax. I just want to make sure that if my property tax for next year will include regular tax for assessed house and supplemental tax for previous year
Expert:  Richard replied 1 year ago.
That is correct. You should not incur any supplemental tax for 2015. There is a concept of "roll-back" taxes where tax is retroactively assessed, but that's when property is re-zoned from, for example, agriculture to residential, where you have been getting an exemption from the normal taxes.

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