New Jersey Office Tax Assessments – Declining Market May Actually Signal Increased Taxes
New Jersey office property owners may be facing increasing property taxes even as market values decline. Many properties in the state were assessed before COVID-19, and those outdated assessments may now be adversely impacted by New Jersey’s “Chapter 123” equalization methodology. Because municipalities use a single equalization ratio for all property types, dramatic changes in residential and industrial sales have pushed these ratios lower.
This “ratio squeeze” causes an office building’s implied true market value to rise despite decreasing real market value, increasing the property’s tax burden. MROD’s Tom Olson and Matt Erickson break down how this impacts commercial real estate and outline what steps you can take if you believe your tax assessment is unfair.
Read the full article in the Mid Atlantic Real Estate Journal: https://online.flippingbook.com/view/404164872/i/#zoom=true
