What triggers the potential need for a revaluation if the director's sales ratio falls below which percentage?

A drop in the director's sales ratio below 85% signifies that the assessed value of properties within the municipality may no longer represent their true market value accurately. This is significant because a sales ratio that falls under this threshold indicates a disparity between assessed values and actual market values, which can affect property tax revenues and fairness in assessments.

Monitoring the sales ratio is crucial for ensuring equity in property taxation. If the ratio is consistently below 85%, it suggests that properties may be over-assessed, warranting a revaluation to align assessed values more closely with current market conditions. This process not only helps maintain fairness within the tax system but also reassures property owners that they are paying taxes based on accurate property valuations reflective of the market.

While sales ratios below other figures may raise concerns, the 85% benchmark is the critical threshold established in New Jersey to prompt a revaluation. Hence, this percentage serves as a guideline for assessors to evaluate the need for an adjustment in property assessments to ensure compliance with statutory requirements and equitable taxation.