Saddle River, a New Jersey Republican stronghold where Richard Nixon once owned a home, went so far as to hire a public relations firm to pitch the town as the Palm Beach of Route 17 -- a local tax haven that keeps levies lower than neighboring municipalities because of a lack of sidewalks, professional firefighters and a public high school.
“You don’t need all of that stuff,” said Mayor Al Kurpis, whose day job is dentist.
For those who don’t want to move, the obvious solution is to complain -- ideally to a tax court. Michael Schneck, the managing member of a Livingston, New Jersey-based firm that bears his name, has been fielding calls from homeowners who want to appeal their property taxes. Some of them may even have a case.
“Homes over $3 million are seeing a significant slowing of sales and reduction of offering prices,” Schneck said.
That may be because savvy shoppers are factoring in the new limit on the SALT deduction, or simply that the market for luxury homes is cooling after a period of rapid appreciation. In either case, a slowing market gives affluent homeowners an avenue to lowering their levies -- eventually.
“What is the impact of the loss of the deduction on market values?” Schneck asked.
It was a rhetorical question. For many, it’s still too early to say.
This article is provided by Bloomberg News.