New Jersey Certified Tax Assessor (CTA)

Question: 1 / 605

What is the first step in calculating rollback taxes?

Determine the additional assessment on the land

Determine the true market value of the land

Calculating rollback taxes begins with determining the true market value of the land. This step is crucial because rollback taxes are assessed based on the difference between the land’s value as actively farmed or used for a specific purpose and its market value once it is no longer classified under those conditions. Establishing the true market value provides the baseline needed to evaluate the adjustment in tax liability owed due to the change in use of the land.

Once the market value is known, it enables the assessor to apply the taxation formulas and rates accurately to determine what rollback taxes are likely owed. By starting with the true market value, the process ensures that subsequent steps—such as calculating the potential tax increases based on that valuation—are based on solid data.

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Calculate the general tax rate

Assess the compliance of the woodland management plan

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