New Jersey Tax Court Rejects Taxpayer’s Property Valuation Challenge, Determines Property’s True Market Value

The New Jersey Tax Court issued a decision rejecting taxpayer’s challenge against the 2022 and 2023 property tax assessment on one of the lots of their mixed-use property in Montclair Township. The Court used the income capitalization analysis approach and found different market rents should apply for the traditional office space and the individually partitioned office spaces. After reconstructing the property’s income and expenses and applying capitalization rates supported by the evidence, the court concluded the property’s true market value. [Croft v. Montclair Township, N.J. T.C. App., No. 006061-2022, 06/25/25]

This story was produced by Bloomberg Tax Automation, and edited ...