January 8, 2007

New Jersey Spending Habits Killing Taxpayers

Local officials have passed more than a billion dollars of their costs onto homeowners every year since 2002. Taypayer homeowners in 55 towns can expect to pay five-figures to support schools, police and other local services with no end in sight - at a rate double the rate of inflation.

One would think it time to reduce local government’s reliance on property taxes The unacceptable spending habits of these 55 towns mushroom at a rate of between 6 and 7 percent for five years and double the rate of inflation. Legislators are constantly tinkering with expensive projects, overhauls, new equipment, new cars, … the list is endless. Responsible New Jersey government should be cutting taxes and reducing their bloated budgets.

The only way to fight your property taxes is to elect a culture of conservative tax cutting, budget reducing legislatures. Appealing your property taxes is done because of inequities in market assessments, which incidentally runs 40-60 percent because of constant blanket re-valuations that don’t get the values right.

Property tax re-valuations do not increase the total amount of revenue raised by taxation. They are designed to spread the tax property tax burden based on the market value of your home. The municipality collects the amount of tax dollars for the expenses of local government — local school, regional school, county government and municipal government.

Property tax increases can be due to correcting inequities, such as improvements done without building permits. But the few who are caught building something without a permit hardly justify paying for the expensive cost of a blanket municipal revaluation.

If the building inspector is doing his job, any improvements would be reflected in the adjusted market value for a home. New homes built can be assessed relative to the tax base doing away with the added expense of a municipal revaluation.

Filed under Blog, New Jersey by George Bolton

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