When is your real estate tax too high? Simply stated, when you are paying more than your fair share of your municipal taxes. Real estate tax is assessed based upon the fair market value (FMV) of your property multiplied by the municipal tax rate. Since all municipal tax bills use the same tax rate, the only potential source of inequality relates to the actual assessment of a particular parcel.

Assessments should be based on the properties’ FMV, and will typically rely on formulas that incorporate many variables such as property type, neighborhood, zoning, etc. Market values are influenced by the real estate market, which can rapidly fluctuate. Municipalities frequently use formulas instead of assessing each individual property using comparable sales. While the use of formulas typically produces accurate results, it is not reliable for every property.

Over assessment may be established by evidence that the property was on the market or sold for a lower price than its town assessment. However, it is usually not this simple to demonstrate over-assessment.

If you feel that your property is over assessed, you may wish to contact an attorney. An attorney can help:

• Locate recent sales of similar properties;
• Hire a professional appraiser;
• Negotiate with the town assessor; and
• File the tax abatement application.

The real estate’s FMV is determined as of April 1st of the new tax year. Abatement applications must be filed by March 1st, even if tax bills are sent biennially. The municipality will decide by July 1st. An appeal to the Superior Court or the Board of Tax and Land Appeal must be received prior to September 1st.