Over the 2000 to 2006 time frame, Real Estate values have appreciated nicely in most markets in the United States and properties located in New Jersey, New York, and surrounding metropolitan areas enjoyed healthy increases in their value.  As history has shown us though, the real estate market is cyclical and values in some markets have more recently declined from their peak values as the real estate market has slowed and shows signs of another real estate recession in some property classes and markets. 

So what does this have to do with lowering your taxes? 

Well, property taxes are based on a tax rate multiplied by your assessed value. Many municipalities have revalued all properties or reassessed certain classes of properties within the last two years.  Due to the time it takes to complete such an undertaking, many newly issued assessments can be substantially overstated as they reflect valuations that maybe were done when the market was at its peak or at least higher than it is now.   As a result, you may have a basis to appeal your assessment and if successful, reduce your property taxes.

We suggest you review your 2008 property tax assessment with your legal advisor to determine if a tax appeal should be considered.   NJ is required to provide you with a notice of your annual assessment by February 1, 2008, and any tax appeal to challenge the assessment has to be filed by April 1, 2008.   New York City has a tax appeal filing deadline this year of March 3, 2008.