>The Tax Foundation ranked New Jersey No. 1 among the 50 states for having the highest combined average state and local tax burden on residents
Are Jerseyans overtaxed for everything?
Pretty much, rankings show
By WILFORD SHAMLIN
STAFF WRITER
Is it fair to size up New Jersey based on property taxes alone?
When looking at all the taxes residents and businesses must pay, does the Garden State tax too much?
How does it compare to other states, small and large?
While there are a few individual taxes in New Jersey that are relatively low or average, there’s no arguing that the total tax burden New Jerseyans face is as steep as it comes.
For 2009, the nonprofit Washington-based Tax Foundation ranked New Jersey No. 1 among the 50 states for having the highest combined average state and local tax burden on residents.
New Jerseyans contribute 11.8 percent of their income toward just state and local taxes each year — about $6,610 per person. Pennsylvanians pay 10.2 percent — 11th highest in the nation. Alaskans face the lowest state and local tax burden — just 6.4 percent of their income.
So is it too much to pay? It depends who you ask. But these days, it seems likely that a majority of New Jerseyans would say yes.
According to the Tax Foundation, New Jersey consistently ranks highest in the nation for property-tax burdens (now averaging $7,544 per household).
Robert E. Pritchard, professor of finance at Rowan University’s Rohrer College of Business, said in addition to “sin taxes” on items like cigarettes and alcoholic beverages, it has a tax that kicks in when you die.
“If you want cheap gasoline, come to New Jersey. But if you want to live here, expect to pay very high property, income and sales taxes,” Pritchard said. “And New Jersey has both estate and inheritance taxes . . . If you plan to die here, expect to pay even more taxes when you check out.”
Compared to five surrounding states, New Jersey’s sales tax (7 percent) and cigarette tax ($2.70 per pack) both fall at the high end of the scale.
Delaware has no sales tax, while Maryland, Pennsylvania and Connecticut charge 6 percent on goods and services. New York has a 4 percent state sales tax but, unlike New Jersey, local governments are allowed to increase the sales tax, up to 8.875 percent.
When it comes to the gasoline tax, New Jersey is a relative bargain at 14.5 cents per gallon. The tax is lower in just two other states — Alaska (8 cents) and Georgia (12.4 cents).
New Jersey’s tax rates on alcohol are in the middle of the pack compared to other Northeast states such as Connecticut, New York, Pennsylvania, Delaware and Maryland.
The issue of property taxes still creates a national buzz. New Jersey’s first Republican governor since 2001 has pledged to fix the problem. A 2 percent cap on arbitration awards is a key piece of Christie’s reform plan. It applies to salaries across the board, cost-of-living increases and longevity pay, but excludes health care and pension costs.
MORE: https://www.app.com/article/20101226/NEWS03/12260339/Are-Jerseyans-overtaxed-for-everything-
