If You Bury Someone on Your Property, Do You Have to Pay Taxes in New Jersey?
Explore how private burials may affect property classification, tax obligations, and land use rules for New Jersey homeowners.
Burying a loved one on private property is an uncommon but legally complex choice in New Jersey, often stemming from personal preferences or traditions. This decision raises practical questions, particularly regarding property taxes.
This article examines how establishing a private burial site might affect property tax obligations under New Jersey law, navigating a landscape where state regulations appear to conflict with some interpretations of local possibilities.
Land Classification for Private Burial Sites
A significant hurdle exists for private burials in New Jersey. The New Jersey Cemetery Board, the state regulatory authority, maintains that burials are only permitted on land formally dedicated for cemetery purposes, requiring the landowner to become a state-approved “cemetery company.”1NJ Division of Consumer Affairs. New Jersey Cemetery Board FAQs This stance appears to preclude casual private burials. However, acknowledging that some local practices or interpretations might arise, the question of land classification becomes relevant if such a burial were pursued, likely requiring specific local zoning and health approvals.
Should a burial proceed under local permissions despite the Cemetery Board’s position, the act of interment itself generally does not change the property’s overall classification for tax assessment. If a property is classified as residential or agricultural, establishing a small family burial plot typically does not reclassify the entire parcel as a cemetery. The property’s primary use continues to define its classification under state assessment guidelines (N.J.A.C. 18:12-2.2). The burial site becomes a feature of the land within its existing classification, not a trigger for reclassification unless it fundamentally alters the property’s main function, which is unlikely for a small family plot. Recording the burial site’s location on the property deed is often recommended for future clarity.
Municipal Tax Liability
Property taxes in New Jersey are based on the assessed value of real property. State law requires properties to be assessed uniformly at their “true value,” generally understood as market value – the price a willing buyer would pay a willing seller (N.J.S.A. 54:4-23).2NJ Division of Taxation. A Guide to Property Tax Assessment Revaluations Municipal tax assessors determine this value annually.
Establishing a small private burial site, assuming it navigates the regulatory complexities, usually does not significantly alter the property’s overall assessed value or tax liability. The assessor values the entire parcel based on its market value. While a burial site could be noted, its impact on the total value of a larger residential or farm property is typically minimal. The annual tax bill is calculated by applying the local tax rate to this assessed value. Unless the burial site substantially diminishes the property’s overall market value in the assessor’s view, the tax liability remains based on the assessment of the property as a whole. Property owners can appeal assessments they believe are incorrect to their County Board of Taxation (N.J.S.A. 54:3-21).3Village of Ridgewood (hosting NJ document). NJ Assessors Handbook Chapter 11 – Tax Appeals
Exemptions or Credits
New Jersey law offers property tax exemptions for burial grounds, but these are aimed at formally established cemeteries, not typically private family plots on residential or agricultural land. Key statutes like N.J.S.A. 54:4-3.6 and N.J.S.A. 54:4-3.9 exempt graveyards and burial grounds “used exclusively” or “solely devoted” to cemetery purposes, often limited by acreage and typically operated by religious or non-profit entities, or registered cemetery companies.
The New Jersey Cemetery Act (N.J.S.A. 45:27-20) provides broad tax exemptions for “cemetery companies” on land “dedicated to cemetery purposes.”4Justia Law. New Jersey Revised Statutes Section 45:27-20 – Exemption From Certain Taxes Achieving this status involves formal dedication, meeting state requirements for operation, mapping, and often establishing maintenance funds under the oversight of the New Jersey Cemetery Board (N.J.S.A. 45:27-1 et seq.).5NJ Division of Consumer Affairs. New Jersey Cemetery Act, N.J.S.A. 45:27-1 et seq.
A private family burial site on property primarily used as a home or farm generally fails to meet the “exclusive use” or “sole dedication” criteria required for these exemptions. The landowner typically has not formed a cemetery company or formally dedicated the land according to the Cemetery Act’s stringent procedures. Organizations claiming such exemptions must file documentation with the municipal assessor proving their eligibility.6NJ Department of Environmental Protection. Further Statement of Organization Claiming Property Tax Exemption An individual homeowner with a family plot usually cannot meet these requirements. Consequently, a private burial site on otherwise taxable property generally does not qualify the landowner for specific property tax exemptions or credits.
Selling or Transferring the Property
Selling property containing a private burial site requires careful consideration, primarily regarding disclosure. New Jersey common law obligates sellers to disclose known, hidden conditions (latent material defects) that could significantly affect the property’s value or a buyer’s decision, as established in Weintraub v. Krobatsch, 64 N.J. 445 (1974). While human remains are not a typical physical defect, their presence is widely considered a material fact requiring disclosure.
The standard Seller’s Property Condition Disclosure Statement used in New Jersey requires revealing known property conditions. Failure to disclose a burial site could lead to legal claims for misrepresentation, even in an “as is” sale. If a buyer asks directly about deaths or burials, the seller must answer truthfully.
The existence of a grave can also affect marketability, as buyers may have concerns or objections. Recording the burial site’s location on the property deed filed with the county clerk is advisable to provide legal notice to future owners. Transferring ownership also raises questions about access for descendants. Unlike established cemeteries where family access rights are protected by statute (N.J.S.A. 8A:5-20), access to a private grave on transferred property is less certain and may require negotiation and formalization through easements or deed restrictions. Otherwise, the new owner generally controls the entire property, including the burial site, subject to laws regarding the respectful treatment of remains.
Zoning and Land Use Compliance
Compliance with local zoning and land use regulations is essential for any private burial. New Jersey’s Municipal Land Use Law (N.J.S.A. 40:55D-1 et seq.) empowers municipalities to create zoning ordinances that dictate how land can be used. Establishing a burial site must conform to the rules for the property’s specific zone (e.g., residential, agricultural).
Local ordinances might not specifically mention private burials. The proposed use might be considered an accessory use, or it might be prohibited, potentially requiring consultation with the municipal zoning officer or approval (such as a variance) from the local planning or zoning board (N.J.S.A. 40:55D-70). Local boards of health also regulate interments, potentially setting standards for setbacks, burial depth, and permits, based on public health authority derived from state laws (Title 26, N.J.S.A.).
Crucially, these local requirements exist alongside the authority of the New Jersey Cemetery Board. As previously noted, the Board interprets state law (N.J.S.A. 45:27-1 et seq.) as generally requiring land to be formally dedicated as a cemetery, involving state approval, mapping, and potentially maintenance funds, before burials can legally occur. While some suggest local approvals might suffice for small family plots, the Cemetery Board’s official position presents a significant state-level compliance hurdle. Satisfying local zoning and health rules may not be enough; adherence to the state’s cemetery regulatory framework appears necessary for lawful private burial in New Jersey.
