The offices of Quest Diagnostics and Prudential Real Estate Investors aren't worth what they used to be, according to value adjustments authorized by the on Monday.
The assessed values of the two Giralda Farms properties are dropping more than a million dollars each for 2012, which means Madison will receive about $80,000 less in property tax revenue from the property owners.
Property owners can file tax appeals in an effort to show changes in the real estate market affected them disproportionately, leading to them paying more than their fair share of taxes. If the appeal results in a lower assessment, the difference is shouldered by the rest of the tax base.
7 Giralda Farms is owned by RXR Realty, with Prudential Real Estate Investors as a tenant. Its assessment for 2012 dropped $1,275,900 from the previous year—from $20,516,900 in 2011 to $19,241,000 in 2012.
3 Giralda Farms is the headquarters of . Its assessment dropped $1,690,500—from $14,232,500 to $12,542,000.
The resolutions approved by the council said the agreements were recommended by the borough tax assessor and were in the best interest of the borough.
Using the 2011 tax rate of $2.71 per $100 of assessed value, the adjustment means 7 Giralda Farms would have paid $34,576.89 less in taxes than it did 2011, and 3 Giralda Farms would have paid $45,812 less.
The tax rate for 2012 is expected to be 2.78. That would mean 3 Giralda Farms would pay about $348,667 in 2012. 7 Giralda Farms would pay about $534,900.