Commercial property owners throughout the state are appealing their tax assessments. Any good commercial property owner should be doing this every year anyway since certioraris
work on a contingency basis. As for the repercussions to the townships tax rolls, well yes they will be impacted greatly however the more suburban towns have a buffer in that the majority of their tax revenues are derived from residential revenues. Cities like Newark derive a significant share of their revenues from commercial properties for the sole reason that a much higher percentage of the population live in apartment buildings which are considered commercial properties.
It is true that the value of a commercial property is driven by the economics of the property, how much net operating income is generated, not necessarily comparable sales. The interesting thing about this method of evaluation is that the government actually has the ability to impact these values. Municipalities regulate commercial properties in various ways from allowed uses and zoning to hours of operation, rent regulation, sales tax, real estate tax, parking requirements, building codes, etc… The most effective means for a municipality to increase their taxable base is to alleviate commercial property owners from punitive and counter productive regulation.
In an earlier post I touched on some of the arguments against rent control. See it here
This really is just a broadening of that argument.