Chapter 91 requests are a routine but important part of the property tax process for income-producing properties. They provide assessors with the financial information needed to assign an accurate value to your property, and responding completely and accurately can help prevent mistakes that could affect your taxes for the following year.
If you own income-producing property in New Jersey, you may receive a formal notice from your municipal tax assessor asking for detailed financial information about your property. Many owners are surprised when this arrives in the mail. This notice is commonly called a Chapter 91 request. While it may seem intimidating at first glance, understanding what it is and how to respond can protect your property rights and even influence your tax assessment.
What Is a Chapter 91 Request?
A Chapter 91 request, authorized by N.J.S.A. 54:4-34, allows municipal tax assessors to request records from owners of income-producing properties. The purpose is straightforward: assessors need accurate information about a property’s income and expenses to value it correctly for property tax purposes.
Income-producing properties typically include apartment buildings, retail centers, office spaces, industrial buildings, and mixed-use properties that generate rental income. Even if you don’t actively manage the property on a daily basis, you may still receive a request because the property produces revenue.
Chapter 91 requests can be sent any time throughout the year; however, they must be sent to property owners at least 45 days before January 10th.
Why Assessors Send Chapter 91 Requests
Property taxes are meant to reflect the fair market value of real estate, and for income-producing properties, that often involves using the property’s income to help determine its value. Assessors rely on information about a property’s income and expenses to estimate its worth. Without accurate data, they may have to make assumptions, which can result in higher assessments.
Chapter 91 requests give assessors the opportunity to collect this financial information and compare it to market averages. This process helps ensure equitable taxation across properties and neighborhoods. Requests are typically sent during the annual assessment cycle or whenever a property’s assessed value is under review.
Mixed-use properties (e.g., retail on the ground floor with apartments above)
Owner-occupied single-family homes are never subject to these requests because they do not generate market rent. If your property produces income, however, you should assume that a request could arrive at any time. Awareness and preparation are essential.
What You Must Do If You Receive a Chapter 91 Request
Timing is crucial when responding to a Chapter 91 request. The law typically gives property owners 45 days to provide the requested information. Meeting this deadline is important because failing to respond on time can result in losing your right to appeal your property’s assessment.
A complete response generally includes the financial information the assessor has requested to evaluate the property. This may include rent rolls, copies of leases, and statements of income and expenses, though the exact requirements can vary by municipality. Organizing your records clearly helps ensure the assessor can review the information efficiently and supports your position if questions arise.
What If You Fail to Respond to a Chapter 91 Request?
As mentioned previously, failing to respond to a Chapter 91 request can lead to an inaccurate property assessment. Without the information you provide, the assessor may have to make assumptions or rely on incomplete data to determine your property’s value, which can result in a higher tax bill. Furthermore, failure to respond can make appealing your property’s assessment for the following tax year extremely difficult as the municipality can make a motion to have your case dismissed on those grounds.
What Property Owners Should Keep in Mind When It Comes to Chapter 91 Requests
Property owners sometimes misunderstand the nature of Chapter 91 requests. Here are some important points to keep in mind:
It is not a bill. Receiving a request does not mean you owe additional taxes immediately.
It is not optional if you want to file a tax appeal. Ignoring the request can lead to an unfair assessment and losing the chance to appeal.
Partial responses are not enough. Only full, accurate submissions give the assessor the information they need to assign an accurate property value.
Understanding what the notice is, and what it isn’t, prevents mistakes that can carry long-term financial consequences.
When to Speak With a Property Tax Appeals Attorney in New Jersey
If you receive a Chapter 91 request and aren’t sure how to respond or how it might affect your property’s assessment, it’s best to contact a property tax attorney. A lawyer can guide you through the process, ensure your response is complete and accurate, and communicate with the assessor if needed.
You should also consider contacting an attorney if you’re concerned that your property’s assessment isn’t accurate, even if you haven’t received a request. An attorney can review your property’s valuation, identify potential issues, and assist you in filing an appeal when appropriate.
Working with an experienced property tax appeals lawyer can help you navigate the process with confidence, reduce the risk of errors, and safeguard your financial interests.
What Are Chapter 91 Requests: FAQs
Do I Need To Fill Out a Chapter 91 If I Occupy a Commercial Building I Own Or Pay Myself Rent?
There is rarely a disadvantage to filling it out in these situations and alerting the assessor that this is the case. This preserves your right to a tax appeal and the assessor will still use other data sources, the same as if you had not filled it out.
If you fail to fill it out, it will come down to whether a different entity is the tenant. If the real estate owner and the business operating in the building is the same LLC, the court will likely allow the appeal to go forward. If it is separate entities, it will likely not.
If I Just Bought a Building And the Old Owner Received Chapter 91 and Did Not Fill It Out, Can I Still Do a Tax Appeal?
Unfortunately no. The old owner’s failure to fill out the form will bind the new owner.
What Do I Do If I Do Not Understand a Question On the Chapter 91 Form, Can I Just Leave It Blank?
The law surrounding this is pretty clear that the taxpayer is to reach out to the assessor’s office for clarification. The reality is though, that if you provide all of the most important information regarding income and expenses and rent rolls, most assessor’s offices will consider it as having been answered. Ultimately, leaving something blank is a risk, and past conduct by an assessor is no guarantee of future outcomes.
If You Need Help With a Chapter 91 Request, Let’s Talk
Chapter 91 requests are a routine but important part of the property tax process for income-producing properties. They provide assessors with the financial information needed to assign an accurate value to your property, and responding completely and accurately can help prevent mistakes that could affect your taxes for the following year.
If you have questions about a Chapter 91 request or concerns about your property’s assessment, contact Wolf Vespasiano LLC. Our New Jersey property tax attorneys can provide guidance and help you protect your financial interests.
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