Tax Court Extends American Dream Mall Assessment
New Jersey's Tax Court has held the East Rutherford mega mall's $1.65 billion assessment in place for two more tax years under the state's Freeze Act.
Updated on Nov. 4, 2026 in Commercial
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The New Jersey Tax Court extended the $1.65 billion property tax assessment for the American Dream mega mall in East Rutherford to tax years 2026 and 2027. The court had cut the mall's 2025 assessed value by $850 million last year.
Why it matters
The ruling means the borough cannot raise the mall's assessment for two years under the state's Freeze Act, which the court held is not affected by the payments in lieu of taxes that owner Ameream makes. The decision shapes how much property tax revenue the borough can expect from one of the state's largest commercial properties.
The Tax Court's opinion holds the mall at a $1.65 billion assessed value after cutting it by $850 million in 2025. The extract does not specify any further appeal or revaluation timeline beyond the 2026 and 2027 tax years.
The players
Ameream LLC
Ameream LLC is the company that owns and develops the American Dream mega mall in East Rutherford and makes payments in lieu of taxes to the borough.
New Jersey Tax Court
The New Jersey Tax Court is the state court that hears property tax appeals and issued the opinion extending the mall's assessment.
The details
The American Dream mega mall, owned and developed by Ameream LLC, is located in East Rutherford. The Tax Court agreed that the Freeze Act bars the borough from increasing the assessment for the following two years, and that Ameream's payments in lieu of taxes do not affect that protection.
Timeline
2025: Tax Court cut the mall's assessed value by $850 million.
2026 and 2027 tax years: The $1.65 billion assessment is extended under the Freeze Act.
Wednesday, November 4, 2026 (approximate): Tax Court opinion posted.
Roadmap
The ruling applies New Jersey's Freeze Act, which limits assessment increases for two years, to one of the state's largest commercial properties. It confirms that payments in lieu of taxes do not override that statutory protection.
Because the Freeze Act bars an assessment increase for two years, the borough's property tax revenue from the mall is set at the current level through the 2027 tax year. The extract does not say how that will affect local tax rates or services.
The takeaway
Property tax assessments for large commercial developments can be locked in for multiple years by state statute, even when the owner makes voluntary payments to the municipality. Local budgets should account for that protection when projecting revenue.
Further reading
For related coverage, see Commercial real estate news.
Source note: This article includes information reported by Bloomberglaw.
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