My wife and I just purchased a second home in New Jersey. The property taxes NJ are the highest in the country, as I understand it. The taxes on this property are already a bit high, imo ($7700), but my concern was around how the township may reassess property value as everything has sky rocketed recently. Just to use round numbers, if the house was assessed at $250k for $7700, but now due to the market, interest rates, and peoples desire to buy in remote locations due to WFH changes the house sold for $350k (+40%). Does that allow the township to up my property tax by 40% as well?
I have to imagine that then entire area has increased by a similar margin and they cant just decide to up their overall tax by 40%, but I’m just not sure how it works in times like this.