Real Estate Owners May be Entitled to 2017 Property Tax Reductions

As 2017 property tax assessments begin to arrive in mailboxes early next year, make sure to review yours with a legal advisor to determine if you qualify for a tax appeal. New Jersey and New York have two of the highest property tax burdens in the country, but recent market changes in real estate value relative to equalized tax assessments may bring opportunities to have your tax obligation reduced.

Property taxes are based on a tax rate multiplied by the assessed property value. If your advisor concludes that your assessment is too high, you may have a basis to appeal. This applies to all classes of property, including residential, commercial, retail, industrial, multifamily and hospitality.

However, there is a limited window in which appeals can be filed, and deadlines vary by state or even county.

Most New Jersey municipalities are required to provide written assessments to property owners no later than February 1, 2017, and appeals must be made no later than April 1, 2017.

The one exception, beginning this year, is Monmouth County, where assessments were mailed by November 15, 2016 and the appeal deadline is January 15, 2017.

Typically, New York City issues annual property tax assessments by January 15, with a tax appeal filing deadline of March 1 for most property classes.

As soon as you receive your assessment(s), act quickly to review the potential merit for a tax appeal. If you need assistance or further information, contact a member of the Sax Real Estate Industry Service Team at (973) 472-6250.

Michael A. Mongelli CPA is a Partner at Sax and leader of the firm’s Real Estate Industry Services Group. He and his team specialize in providing accounting, tax and consulting services to real estate owners, investors and developers in the tri-state area. Michael can be reached at [email protected]

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