What Is Equalization Ratio Nj

The equalization ratio is a key concept to understand; it measures a city’s current market value as compared to its assessed value. All of Jersey City’s taxable property, when added together, is called the tax base. The tax base has two values: (1) current market value and (2) assessed value.

How is equalized assessed value calculated in NJ?

With knowledge of a property’s assessment and the municipal equalization ratio the true assessed value or “Equalized Value” of a property can be calculated. This is done by dividing the total assessed value by the municipal Equalization Ratio.

What is director's ratio NJ?

“Director’s Ratio” means the average ratio of assessed to true value of real property for each taxing district as determined by the Director, Division of Taxation, in the Table of Equalized Valuations promulgated annually on or before October 1 in each year pursuant to N.J.S.A. 54:1-35.1.