New York - Homeowners across the country are challenging their property tax bills in droves as the value of their homes drop, threatening local governments with another big drain on their budgets.

The requests are coming in record numbers, from owners of $10 million estates and one-bedroom bungalows, from residents of the high-tax enclaves surrounding New York City, and from taxpayers in the Rust Belt and states like Arizona, Florida and California, where whole towns have been devastated by the housing bust. Click here to read the full article from the New York Times.

If your property value goes down, doesn’t that mean your tax bill should too? The answer is yes – but you need to file an appeal to find out. The deadline to file an appeal is March 2 in New York City and April 1 in New Jersey.

This year has been unique because property values have been in sharp decline. Your tax bill, as you know, is based on your property tax assessment, but tax assessments do not keep pace with changing markets, especially when the market changes as rapidly as it has in the past few months. Current assessments are most likely based on property valuations made a long time ago, when prices were higher. Chances are, you have not heard from your municipality about this. If so, check immediately to see how your home has been assessed and what your taxes will be for 2009. If your taxes seem out of line, you can file an appeal.

The appeal will require you to enter what you believe to be the true value of your home. While you can do research and make your best guess at this, the best way to determine this value is to have a professional appraisal conducted. The value you enter on your appeal will be used as the basis for your appeal, so it’s best to have a professional appraisal that will stand up to professional review by your municipality.

Please contact me if you are interested in learning more or would like to schedule an appraisal. For more information about the appraisal process in New York City and New Jersey, or for information on other municipalities you can visit our website. or contact us by phone at 1-866-467-5100.