Countdown to November 1: New Jersey Nonprofits Must File Property Tax Exemption Claims on Newly Acquired Property

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Published Date: 10/13/2026

If your nonprofit organization purchased real property in New Jersey in the past year and plans to use it for exempt purposes, you should note an important deadline. To seek a property tax exemption for that property, you MUST file an Initial Statement of Organization Claiming Property Tax Exemption with the municipal tax assessor by November 1, 2026.

What is the Initial Statement and Who Must File?

The Initial Statement is the form that the Director of the Division of Taxation prescribes for organizations that claim exemption from New Jersey property tax. It applies to many types of not for profit organizations such as educational, religious, charitable, and hospital organizations.

Key filing points include:

  • Where and how to file: File the claim in duplicate with the assessor of the municipality where the property is located.
  • One claim per parcel: Each parcel needs its own Initial Statement.
  • Ownership by October 1: In most cases, your organization must hold full legal title to the property as of October 1 of the pretax year (i.e., October 1, 2026, for the 2027 tax year).
  • Actual exempt use: The property must actually be used for a qualifying exempt purpose as of October 1; planned future use, for-profit use and private use do not qualify.  Exemption also depends on how the property is used as of October 1 of the pretax year.
  • Organizational requirements: Your organization must be not for profit and incorporated or organized under New Jersey law.  Its formation documents must also authorize the purposes for which exemption is claimed.
  • Supporting information: The form asks about your organization’s purposes, incorporation, the deed and ownership, the property’s physical description and use, any leases or commercial activity, and compensation paid.

Consequences of Missing the Deadline

Filing on time is one of the listed eligibility criteria for exemption.  If your organization does not file by November 1, 2026, it will not meet that requirement.  As a result, the property may stay on the tax rolls and be taxed for the 2027 tax year, even if it would otherwise qualify.  The burden of proof is on the organization, and the assessor has no duty to seek you out or help bring you into compliance.

Please also keep in mind these related obligations:

  • Leasing and nonexempt use: If any part of a building is leased to a for-profit organization or used for nonexempt purposes, that part may be taxed.
  • Further Statement: After the Initial Statement is approved, you must file a Further Statement every third year by November 1st.
  • Appeals: If the assessor denies your claim, you may appeal to the County Board of Taxation or Tax Court of New Jersey before the applicable filing deadline.

 We Can Help

Requirements differ from statute to statute, and assessors look closely at ownership, use, and organizational documents.  For these reasons, we strongly encourage you to contact us as soon as possible before November 1.  We can confirm your eligibility, prepare and file the Initial Statement, and gather the supporting documents.

If you have any questions, please reach out to

Daniel J. Pollak, Esq., Member and Chair, Real Estate Tax Appeals at 973.403.3119 or dpollak@bracheichler.com

Michael A. Rienzi, Esq., Counsel, Real Estate Tax Appeals at 973.364.5226 or mrienzi@bracheichler.com

*This is intended to provide general information, not legal advice. Please contact the authors if you need specific advice.
Daniel J. Pollak

Daniel J. Pollak

Member
Real Estate Tax Appeals, Real Estate

973.403.3119 · 973.618.5519 Fax

Michael A. Rienzi

Michael A. Rienzi

Counsel
Litigation, Real Estate, Real Estate Tax Appeals

973.364.5226 · 973.618.5961 Fax

Related Practices:   Real Estate, Real Estate Tax Appeals

Related Attorney:   Daniel J. Pollak, Michael A. Rienzi

Related Industry:   Real Estate