file photo by Boyd Loving
the staff of the Ridgewood blog
Trenton NJ, It’s bad enough the average property tax bill in New Jersey is more than $9,000, but it’s far higher in many areas of the state. Senator Kristin Corrado noted it is strange the Governor is bragging that the state’s worst-in-the-country property taxes have gotten worse.
“Residents have repeatedly cited property taxes as their top concern,” said Corrado. “Families living in average homes, with three bedrooms and a couple baths are paying almost $800 in property taxes every month — or more than $9,200 this year. Boasting about that is delusional.”
In response to an article in NJ.com, Corrado noted that property taxes and a series of new and increased taxes are suffocating New Jerseyans struggling to keep up in Murphy’s post-pandemic environment.
“The conditions residents are dealing with every day are in stark contrast to the rosy picture painted by the Governor in his speech this week,” Corrado said. “Murphy’s recent statements prove he is disconnected. It is clear he doesn’t comprehend the burden his policies have created for hard-working families, seniors on fixed incomes and everybody in between.”
State residents are desperate for a property tax solution, Corrado said, and called on the Governor and Legislature to once-and-for-all address the convoluted school funding formula and its impact on property taxes.
“It is no secret. School funding is the primary driver of property taxes in New Jersey,” Corrado said. “The increases in school funding the Governor crows about were in some select districts while more than 200 school districts had their state aid cut even as the state jacked up every tax it could find. Until Trenton fixes the broken funding formula, property taxes will continue to escalate, and New Jersey will remain unaffordable.”
Previously, Senate Republicans urged the Governor to use federal funds to increase or stabilize aid to schools that the Governor cut and to fix the state funding formula for the long term. Both proposals have been ignored.
“The only way to truly control taxes at any level is to reduce government costs,” Corrado said. “This governor has allowed important laws that controlled costs to sunset and he has ignored dozens of proposals to control costs from Republicans and members of his own party. Across the nation, New Jersey is known for ridiculously high property taxes. We need to change.”
Both parties only complain about funding. They never talk about reduced spending.
People come on now, taxes will never be reduced. Yes some years or maybe no increase. Some years will be a little bit more than others, but if you want to maintain the maintenance of any town taxes will go up. You can put a freeze on everyone salary for three years but you still need to make repairs improvements so come on. And when you put a freeze on salaries like I did in the past morale goes back into the gutter. With the cost of living up 7 ,1/2%, and raises around 2%, the workers are still behind the eight ball.
Also, what has happened to property values during that time? Silent on that part of the story.
WHO cares about the value. The sale of a home does not allow for indexing for inflation so the government taxes you on the gain with the 250k single 500k married exemption ONLY if its a primary residence. Otherwise you’re taxed on any gain upon the sale.
Just because the value of property goes up doesn’t mean municipal workers are due a lottery ticket.
“Also, what has happened to property values during that time? Silent on that part of the story.”
Property values are meaningless, other than they create a sliding scale on the proportionality of the amount of taxes due for each house. Yes, there has been a significant rise in values, but this only means anything for two sets of people. Those buying and those selling. You can jump up and down in the knowledge that you are suddenly a paper millionaire, but watch out for the next correction, along with your retirement portfolio.
You seem to forget that the town portion of your total property tax is somewhat small, although it benefits a larger section of the population.
The major portion goes to school taxes, which primarily benefit a much smaller portion of the taxpayers.
Property values rising are just ANOTHER TAX, particularly on retirees. If you bought 20-30 years ago, even with the 250K-500K exemption, you will STILL be paying taxes on the residual. It’s particularly bad on the elderly survivor who has to sell because a spouse passed away. So they bought in Bergen County 30 years ago for $50,000 and suddenly the house is worth $500k. $50k base + $250k deduction equals $200k “profit”, so taxes are levied on $200,000 “gain” at a time when the elderly person can least afford it. Try finding a condo, or assisted living unit, or anything similar in your same Bergen County community for $200,000.
Not to worry.
Your neighbors will continue to vote in the Tax and Spend Liberal Democrats (against their own self-interest) because they are…
RICH and STUPID
If you and your spouse paid 50k for a house 30 years ago and your spouse died, the tax basis is not 50k. You get to add improvements to the basis, and the half of the house owned by your spouse gets a stepped-up tax basis to FMV on date-of-death.
There you go, I saved you some taxes. Can’t save you any real estate taxes. Spending is wild.
Increased “property values”? There are a few costs that eat away at the appreciation of your home when you go to sell. The cost of the transaction itself includes real estate fees (whether FSBO or agent), legal, inspection concessions, state transfer tax, (and if you leave the state, an exit tax). They all factor in.