How is real property assessed for taxation in New Jersey?

Real property in New Jersey is assessed for taxation based on its true value, which is determined by the county. This true value reflects what the property would sell for in the open market. The assessment is conducted within the guidelines of local property laws, which mandate that properties should be assessed at a certain percentage of their market value to ensure fairness and equity in taxation.

Setting the assessment at a percentage of true value allows for adjustments based on market fluctuations while maintaining a standard approach across the jurisdiction. This method contrasts with fixed percentage approaches, such as a fixed percentage of the purchase price or sale price, which may not accurately reflect a property's current market conditions or overall value. By using the true value method, the assessment process aims to establish a fair basis for property tax calculations while also considering local economic conditions.