What happens when property ceases to be exempt due to a change in use or ownership?

When property ceases to be exempt due to a change in use or ownership, it is assessed as omitted property. This means that the property will be added to the tax rolls and valued for taxation purposes starting from the date of the change. In New Jersey, exemptions are linked to specific qualifying criteria, and if those criteria are no longer met, the property is reassessed to ensure fair taxation.

The assessment as omitted property allows the tax authorities to rectify the previous exemption, ensuring that the property contributes to local tax revenue. This is necessary to maintain equity in tax assessments and ensure that all properties contribute their fair share based on their current use.

Other options suggest various outcomes that do not align with the process of taxation in relation to changes in property status. For example, reassessing at a lower value does not conform to standard practice, as the nature of the change typically leads to an assessment reflecting the property's current value, not necessarily a lower one. The idea that the property would remain exempt indefinitely contradicts the principles of property tax law, which necessitates reassessment upon changes in eligibility. Lastly, the notion that the property would be subject to immediate sale is not accurate as a response to a change in use or ownership; rather, it simply becomes subject