Star Ledger Reports: Finally Some Property Tax Relief!

Name: McKirdy & Riskin, P.A.
Address: 136 South Street, Morristown, NJ, 07850
Telephone: 973-539-8900

Home » Property Tax Appeal » Star Ledger Reports: Finally Some Property Tax Relief!

by: Anthony F. Della Pelle

9 Jan 2012

The Sunday Star-Ledger reported yesterday its finding of an analysis of local property taxes in all 566 New Jersey municipalities that shows the average property tax bill was $7,758 in 2011, an increase of about $182 or 2.4% from 2010. (The Star Ledger article can be found here)

This increase was at a significantly slower rate of growth than has been experienced over the last several years. In 2010, the property tax rate rose 4.1% on average across the State and the year-to-year increases from 2007 through 2009 exceeded 7%.

The lower increase in 2011 is the result of a new State law that imposed a 2% cap on property tax collections for towns, schools and counties that started last January. While the cap is flexible and allows local officials to exceed the 2% to cover expenses related to a state of emergency, debt service costs and employee pensions and health benefits payments, it seems to be stemming the tide that led to a nearly 70% increase in property taxes over the preceding decade. 312 towns exceeded the cap last year, while 165 stayed within 2 percent and 89 held their taxes at the same or lower level. This is quite an improvement compared to 2010, when 529 towns had an increase in their total tax rate, 425 of which went over 2 percent.

Notwithstanding the slower rate of growth, New Jersey residents continue to bear a crushing property tax burden. In addition to the tax rate, taxes are calculated based on the property tax assessment which is supposed to reflect the fair market value of the property. Many properties in New Jersey, residential and commercial alike may be assessed based on inflated market values. One way property owners can realize relief from inflated assessments is by challenging the assessment by filing a tax appeal. The deadline to file a tax appeal for 2012 is April 1, 2012. Property owners will be receiving their notice of assessments in a few weeks, so now is a good time to evaluate whether a tax appeal is warranted.