New Jersey property-tax glossary
Definitions, real New Jersey examples, official sources and links back to the tools that use each concept.
Chapter 123
New Jersey's statutory assessment-ratio framework used by county tax boards to compare an assessment with true value and the municipality's common level range.Director's Ratio / equalization ratio
The state-certified average ratio of assessed value to true value for a municipality.Coefficient of deviation
A state measure of assessment uniformity showing how tightly individual assessment-to-sale ratios cluster around the municipality's average.Added assessment
An additional assessment imposed when taxable new construction or an improvement is completed after the regular assessment date.Omitted assessment
An assessment used when taxable property or an improvement should have been assessed but was omitted from the regular roll.Revaluation vs. reassessment
Both update assessments toward current value, but New Jersey uses distinct administrative processes and terminology for municipal-wide assessment maintenance.True value vs. assessed value
True value is market-value concept; assessed value is the taxable value carried on the municipal assessment roll.Common level range
The Chapter 123 corridor around a municipality's certified ratio, generally 15% above and below the average ratio.Senior Freeze base year
The tax year used as the comparison point for an eligible Senior Freeze applicant's future property-tax reimbursement calculation.PILOT agreement
A payment-in-lieu-of-taxes arrangement in which an approved project makes negotiated payments under an applicable redevelopment or tax-exemption program instead of ordinary property taxes.Abatement vs. exemption
An exemption removes qualifying value from taxation while an abatement generally reduces or phases the taxable obligation under a specific legal program.SR-1A
New Jersey's property-transfer and sales-ratio record used by the Division of Taxation in equalization and assessment analysis.MOD-IV
New Jersey's standardized local property-tax assessment data format used to transmit municipal assessment-roll information.Farmland assessment
A preferential assessment program for qualifying actively devoted agricultural or horticultural land, subject to statutory requirements and possible rollback taxes after disqualifying changes in use.Tax rate vs. effective tax rate
The municipal tax rate is applied to assessed value; an effective tax rate expresses tax relative to estimated true market value, making cross-town comparisons more meaningful.Improvement ratio
The share of a parcel's total assessment allocated to improvements rather than land.
New Jersey's statutory assessment-ratio framework used by county tax boards to compare an assessment with true value and the municipality's common level range.Director's Ratio / equalization ratio
The state-certified average ratio of assessed value to true value for a municipality.Coefficient of deviation
A state measure of assessment uniformity showing how tightly individual assessment-to-sale ratios cluster around the municipality's average.Added assessment
An additional assessment imposed when taxable new construction or an improvement is completed after the regular assessment date.Omitted assessment
An assessment used when taxable property or an improvement should have been assessed but was omitted from the regular roll.Revaluation vs. reassessment
Both update assessments toward current value, but New Jersey uses distinct administrative processes and terminology for municipal-wide assessment maintenance.True value vs. assessed value
True value is market-value concept; assessed value is the taxable value carried on the municipal assessment roll.Common level range
The Chapter 123 corridor around a municipality's certified ratio, generally 15% above and below the average ratio.Senior Freeze base year
The tax year used as the comparison point for an eligible Senior Freeze applicant's future property-tax reimbursement calculation.PILOT agreement
A payment-in-lieu-of-taxes arrangement in which an approved project makes negotiated payments under an applicable redevelopment or tax-exemption program instead of ordinary property taxes.Abatement vs. exemption
An exemption removes qualifying value from taxation while an abatement generally reduces or phases the taxable obligation under a specific legal program.SR-1A
New Jersey's property-transfer and sales-ratio record used by the Division of Taxation in equalization and assessment analysis.MOD-IV
New Jersey's standardized local property-tax assessment data format used to transmit municipal assessment-roll information.Farmland assessment
A preferential assessment program for qualifying actively devoted agricultural or horticultural land, subject to statutory requirements and possible rollback taxes after disqualifying changes in use.Tax rate vs. effective tax rate
The municipal tax rate is applied to assessed value; an effective tax rate expresses tax relative to estimated true market value, making cross-town comparisons more meaningful.Improvement ratio
The share of a parcel's total assessment allocated to improvements rather than land.