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I am writing this with Essex County in mind specifically, but this largely applies to all (especially Northern) New Jersey property taxes. It is not uncommon in Essex County or parts of Bergen County for property tax bills on a $500K home to be in the 14 - 15K range. 400K homes are often even in the 12-14K range in some areas. And as we know, individual properties are often seeing annual tax increases of 2-4%.
As someone who is buying in north jersey I have a very real worry that, for people who own now and plan to stay another 7+ years, the same properties mentioned above will be looking at tax bills near or north or 20K. Even nice, yet slightly lesser expensive areas (e.g., Cranford, Scotch Plains, Metuchen) could be seeing tax bills of 15K on a typical 400K property in a short number of years.
Income and inflation are not growing at the same pace as NJ property taxes. At some point, won't there be a huge issue with the average taxpayer handling these bills? Won't it become extremely difficult to sell a completely average home with a 15-20K+ tax bill attached? I know all states have their problems, but short of a complete tax overhaul I have no idea how this issue will be addressed. I don't want to think many of us will be stuck with homes we can no longer sell AND afford.
Wondering if any of you have any thoughts on how this will play out long term. Hopefully I'm concerned for no reason.
NJ Advance Media analyzed municipal tax figures going back 15 years and found that, when adjusted for inflation, the impact of property tax relief relief measures enacted during Gov. Chris Christie's first term — including strict caps on local spending and public worker arbitration rewards — is clear.
Property taxes rose 1 percent when adjusted for inflation from 2010 to 2015 after soaring 35 percent, after inflation was taken into account, from 2000 to 2010, the analysis found.
Christie spokeswoman Joelle Farrell noted that during Christie's first six years, property tax growth "has slowed to an annual average of 1.97 percent, dramatically lower than the 7 percent yearly average in the 10 years before the Christie administration."
"You have to ask yourself, where would New Jersey's property taxes be if not for the governor's reforms," Farrell said. "If annual average increases continued at a rate of 7 percent for the past six years?"
NJ.com just ran an article on this.
The increases are no where near as bad as they were prior to the reforms. Property taxes are still unreasonably high, but the rate of increase is not nearly as bad as it used to be. I think NJ voters recognize its an issue and will not allow things to get out of hand again.
there is supposed to be a cap on increases but my taxes go up way higher than the supposed cap, probably a lot of loopholes, my taxes more than doubled in the past 12 years.
Our worthless elected officials could end the property tax crisis over night by putting on the public ballot a constitutional amendment that requires an equal per pupil funding formula of public schools through the income tax. Ask them why they'll never do this.
Our worthless elected officials could end the property tax crisis over night by putting on the public ballot a constitutional amendment that requires an equal per pupil funding formula of public schools through the income tax. Ask them why they'll never do this.
While people hate paying property taxes, I don't think the local funding model for public schools will ever go away because people also don't like paying for the schooling of "those people" (i.e. black kids in Newark). The local funding model for public schools is one of the main reasons people move to the suburbs.
It's true. I guess I'm just not familiar with how other states handle this. I know many people leave NJ every year and cite taxes as a big reason. My parents will be doing the same soon. Just seems crazy that we could see taxes continue to increase significantly over time and still expect the market to be strong. People may not want to live here eventually. But maybe this is a nation wide problem and we aren't alone.
Thanks for the links to the articles and the feedback.
I am writing this with Essex County in mind specifically, but this largely applies to all (especially Northern) New Jersey property taxes. It is not uncommon in Essex County or parts of Bergen County for property tax bills on a $500K home to be in the 14 - 15K range. 400K homes are often even in the 12-14K range in some areas. And as we know, individual properties are often seeing annual tax increases of 2-4%.
As someone who is buying in north jersey I have a very real worry that, for people who own now and plan to stay another 7+ years, the same properties mentioned above will be looking at tax bills near or north or 20K. Even nice, yet slightly lesser expensive areas (e.g., Cranford, Scotch Plains, Metuchen) could be seeing tax bills of 15K on a typical 400K property in a short number of years.
Income and inflation are not growing at the same pace as NJ property taxes. At some point, won't there be a huge issue with the average taxpayer handling these bills? Won't it become extremely difficult to sell a completely average home with a 15-20K+ tax bill attached? I know all states have their problems, but short of a complete tax overhaul I have no idea how this issue will be addressed. I don't want to think many of us will be stuck with homes we can no longer sell AND afford.
Wondering if any of you have any thoughts on how this will play out long term. Hopefully I'm concerned for no reason.
Let's see, the most densely populated state in the nation to provide almost endless supply of tax victims. NJ has the highest tax rate, a constitution that prohibits the existence of dedicated tax funds, politicians who tell us funds will be dedicated, municipal corruption, dems in bed with the teacher's union and cities like Newark that are bottomless pits of absolute vacuum that suck taxpayer money as it it were in infinite supply.....I have no idea why property tax out paces the economy.
The heavy taxation is probably why NJ pols need to double dip, a practice Jon Corzine ended long before CC took office.
While people hate paying property taxes, I don't think the local funding model for public schools will ever go away because people also don't like paying for the schooling of "those people" (i.e. black kids in Newark). The local funding model for public schools is one of the main reasons people move to the suburbs.
True, property taxes will never go away. But if the income tax was redistributed more equally it would provide more money to suburban districts for local schools, which would reduce the local property tax burden. Right now certain districts get a disproportionately high share of the income tax funding for their schools.
While people hate paying property taxes, I don't think the local funding model for public schools will ever go away because people also don't like paying for the schooling of "those people" (i.e. black kids in Newark). The local funding model for public schools is one of the main reasons people move to the suburbs.
No it's not about the "black kids in Newark. It's about the over 30 towns (districts) that get extra money taken away from our local school districts causing our property taxes to be higher. Hoboken is an Abbott district, last time I checked they had quite a few well to do people living there. I think they shouldn't be subsidized by surrounding towns with people of lesser means to provide for their own towns. I know I'm racist!!!!- for saying this.
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