Real Estate Tax: Property Reassessment May Result in Savings

Summary

Property tax is one of the mainstays of municipal financing and is often considered an unavoidable cost of owning real estate. Some property owners pay property tax on a fee interest, and some pay property tax on a leasehold interest via a triple net lease (NNN) or a lease agreement on a property where the tenant or lessee agrees to pay all the expenses of the property. However, property owners should not overlook the potential benefits of property tax appeals. With widespread fluctuations in property values due to socio-economic factors, including the recent global pandemic, there are reasons to reconsider the valuations on which these taxes are based.