An assessment reduction is a decrease in a property's assessed value, which results in lower property taxes. Reductions can occur through successful appeals where property owners demonstrate their assessment was too high, or automatically when market values decline during economic downturns. Property owners might seek reductions if they can show comparable properties are assessed lower, their property has defects affecting value, or the assessment contains errors. While individual property owners benefit from reductions, widespread assessment reductions can challenge municipal budgets if tax rates are not adjusted to compensate for the shrinking tax base.