American Dream Mall's $1.65B Assessment Is Frozen
Under New Jersey's Freeze Act, East Rutherford cannot raise the mall's tax assessment for two years, so owners of nearby property should expect stable commercial valuations.
Updated on Nov. 4, 2026 in Commercial
Live Poll
Do you think large commercial properties in your town pay their fair share of taxes?
New Jersey Tax Court has extended the American Dream mega mall's $1.65 billion property tax assessment through tax years 2026 and 2027, after cutting the mall's 2025 assessed value by $850 million last year. The ruling applies to the East Rutherford complex, which is owned and developed by Ameream LLC.
Why it matters
For New Jersey taxpayers and the borough that depends on property tax revenue, the ruling means the mall's assessment will not rise for two years even as the state's property-value picture shifts. The Tax Court found that the state's Freeze Act bars East Rutherford from increasing the assessment during that period, which keeps the mall's tax bill on a fixed footing across New Jersey's local tax base.
The Tax Court's opinion keeps the American Dream mall's assessed value at $1.65 billion for tax years 2026 and 2027, a figure that follows an $850 million cut to its 2025 assessment. The freeze covers a two-year window in East Rutherford.
The players
Ameream LLC
The developer and owner of the American Dream mega mall in East Rutherford, which makes payments in lieu of taxes.
New Jersey Tax Court
The state court that cut the mall's 2025 assessment and extended the $1.65 billion figure through 2027 under the Freeze Act.
The details
The state's Freeze Act prevents the borough from raising an assessment for two years once it is set, and the Tax Court agreed that the act applies here. Ameream's payments in lieu of taxes do not affect that protection, so the mall's assessment remains frozen regardless of those payments. The result is that the $1.65 billion figure carries forward into the next two tax years without a new valuation increase.
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): the Tax Court posted its opinion extending the assessment.
The Home Front
The ruling shows how the Freeze Act can lock a large commercial property's assessment for two years even after a court-ordered reduction. For New Jersey homeowners, it is a reminder that municipal assessments follow fixed windows set by state law rather than moving with each year's market.
If you own a home near a large commercial development, check your municipal assessment notice and note when your borough's reassessment window reopens. Ask your local tax assessor's office whether any freeze provisions apply to your property before budgeting for next year's tax bill.
The takeaway
Commercial assessments in New Jersey can stay fixed for two years under the Freeze Act even after a major court reduction, so homeowners should not assume their own bill will move with the market. Keep your tax assessment notices on file and confirm the next reassessment date with your local assessor's office.
Further reading
For context on how these commercial property assessments are set across the state, browse our Commercial real estate coverage.
Source note: This article includes information reported by Bloomberglaw.
Live Poll
Do you think large commercial properties in your town pay their fair share of taxes?
