highest and best use analysis in New Jersey

2026"The highest and best use analysis requires sequential consideration of the following four criteria, determining whether the use of the subject property is: 1) legally permissible; 2) physically possible; 3) financially feasible; and 4) maximally productive." Clemente v. Twp. of S. Hackensack, 27 N.J.

2025The highest and best use analysis involves the “sequential consideration of the following four criteria, determining whether the use of the subject property is: 1) legally permissible; 2) physically possible; 3) financially feasible; and 4) maximally productive.” Clemente v. South Hackensack Twp., 27 N.J.

2022Thus, the highest and best use analysis is often referred to as “the first and most important step in the valuation process.” Ford Motor Co., 10 N.J.

2022Thus, the highest and best use analysis is often referred to as “the first and most important step in the valuation process.” Ford Motor Co., 10 N.J.

2025The highest and best use analysis is a concept rooted in the market's perceptions of value because it answers the inquiry, “[w]hat use would the market make of that property?” Ford Motor Co., 127 N.J. at 302 (citation omitted).

2024The highest and best use analysis is a concept rooted in the market's perceptions of value because it answers the inquiry, “[w]hat use would the market make of that property?” Ford Motor Co., 127 N.J. at 302 (citation omitted).

2024When conducting a highest and best use analysis, the valuation expert must scrutinize the physical surroundings, zoning ordinances, and legal restrictions applicable to the parcel being appraised, and consider “all possible [permitted] uses and [select] that use which will yield the highest return. . . .” Inmar Associates, Inc. v. Edison Twp., 2 N.J.

2023The valuation expert must closely examine the physical surroundings, zoning ordinances, and legal restrictions applicable to the parcel being appraised, and consider “all possible [permitted] uses City of Newark and City of Newark-Div. Sewer and Water v. West Milford Township Docket Nos. 015734-2014, 006894-2015, 005070-2016, 007402-2018, 005841-2018, 006935-2019, 008282-2019, 008756-2020, 011966-2020, 003283-2021, and 003338-2021 Page -8- and [select] that use which will yield the highest return. . . .” Inmar Associates, Inc. v. Edison Twp., 2 N.J.

2018In performing a highest and best use analysis, a property “should be examined for all possible uses and that use which will yield the highest return should be selected.” General Motors Corp., 22 N.J.

2017In conducting a highest and best use analysis, a property “should be examined for all possible uses and that use which will yield the highest return should be selected.” General Motors Corp. v. City of Linden, 22 N.J.

1997In Hackensack Water Co. v. Old Tappan Bor., supra, 77 N.J. at 214 , 390 A.2d 122 , the Supreme Court found the highest and best use for privately-owned underwater land to be “as a reservoir in conjunction with the operation of a utility water system.” Accordingly, if municipally-owned lands could be valued on the basis of a highest and best use for reservoir purposes, any distinction between the highest and best use analysis for privately-owned water supply facilities and such analysis for publicly-owned water supply facilities would be eliminated.

1997In Hackensack Water Co. v. Old Tappan Bor., supra, 77 N.J. at 214 , 390 A.2d 122 , the Supreme Court found the highest and best use for privately-owned underwater land to be “as a reservoir in conjunction with the operation of a utility water system.” Accordingly, if municipally-owned lands could be valued on the basis of a highest and best use for reservoir purposes, any distinction between the highest and best use analysis for privately-owned water supply facilities and such analysis for publicly-owned water supply facilities would be eliminated.

2019The general rule in real property taxation is that property must be valued “in the actual condition in which the owner holds it.” Newark v. Township of West Milford, 9 N.J. 295, 303 (1952); State v. Abbott, 42 N.J.L. 111, 115 (1880).

1997The seminal decision as to publicly-owned water supply facilities is Newark v. West Milford Tp., 9 N.J. 295 , 88 A.2d 211 (1952), in which the City of Newark challenged the tax assessment on 18,548 acres of watershed property, including a reservoir, located in the Township of West Milford.

2019The general rule in real property taxation is that property must be valued “in the actual condition in which the owner holds it.” Newark v. Township of West Milford, 9 N.J. 295, 303 (1952); State v. Abbott, 42 N.J.L. 111, 115 (1880).

2019A fundamental tenet of the highest and best use analysis is that property, regardless of its character, must be valued and assessed for local property tax purposes in the condition in which it is utilized on the assessing date and “the burden is on the person claiming otherwise to establish differently.” Highview Estates v. Borough of Englewood Cliffs, 6 N.J.

1997Mori v. Town, of Secaucus, 15 N.J.Tax 607, 618 (Tax 1996), citing Appraisal Institute, The Appraisal of Real Estate 275 (10th ed.1992).