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The downturn of the real estate market in late 2007 has had a profound impact on municipalities in two ways. First, less state and federal aid was distributed, so municipal budgets were forced to rely more heavily on what could be generated at the local level. Second, plunging real estate prices and successful property tax appeals impacted the real estate assessments municipalities relied upon to collect taxes for their yearly budgets. With property owners having a greater chance of success in their tax appeals as a result of plunging market values, municipalities must look for other ways to reduce a property owner’s chance of success in a tax appeal.

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