We all know about Jersey, right? Table flipping Housewives? Abs-flaunting Shore goers? It’s enough to scare anyone away from the state...and that’s before they even look at the property taxes.
With the highest property taxes in the country, New Jerseyans are paying approximately 11.8 percent of their income to state and local taxes. (The U.S. average, by comparison, is 9.7 percent.) State expenses have increased by 40 percent in the last decade which sounds shocking enough until you look at local spending—which has risen 70 percent. Yes, you read that right. 70 percent.
Clearly something needed to be done...and Republican Governor Chris Christie and other lawmakers have obliged.
After six months in office, the Governor recently signed a new 2 percent property tax cap bill which will take effect next year and replace the current law that allowed for taxes to increase by 4 percent annually.
That’s the good news.
However, there are exceptions to this 2 percent increase. And not just one or two. Certain expenditures—namely pension and health insurance costs, debt payments, increased school enrollment and a “state of emergency” situation--can be brought before the voters to approve spending more than the 2 percent allowed by law.
Will that happen? Hard to say for sure and most likely it will vary from county to county and issue to issue. However, in 2008, despite a 4 percent property tax cap in place, more than 30 percent of local governments raised taxes more than 10 percent due to these exceptions. So there’s a very real possibility.
That said, at least it’s a start. A start at stopping the madness of year after year increases threatening to drive seniors from their homes and keep young families from raising kids in the towns they grew up in. A start at giving the voters more influence on their towns’ bottom lines. And a start at attempting to solve at least one of New Jersey’s problems. Now if only they could legislate against NJ reality shows.
