This past Tuesday you most likely filed your state and federal taxes and while doing so you found out that you could not deduct more than $10,000 of your property taxes.
A typical property property tax bill is $8767.00 per NJ101.5 and here is a property tax calculator for your entertainment, please don’t pass out when you look at what those in other states are paying.
From NJTV, “Taxes are a tough topic to talk about. The common complaint in New Jersey is that taxes are too high — and there is some validity to that. New Jersey’s property tax burden is higher than many other states, according to numerous studies. Business organizations have blamed high taxes in New Jersey for outmigration to states like Pennsylvania.
So how much money are we shelling out each year? The average property tax bill in New Jersey was $8,690 in 2017, which was a $141 increase over the average bill paid in the prior year. And there are plenty of Garden State residents who would love to pay the average bill, because their bills are much higher. In Bergen County for instance, the average property tax bill was $11,564 in 2017.”
In order to answer that question, you need to consider all the factors that go into the computation of your property tax liability and how they can change, from year to year.
Your tax is determined by six basic factors:
- The market value of the property that you own
- The cost of municipal and county programs and services
- The costs of your local public schools
- The availability of other revenues to cover those costs
- The extent of the presence of tax exempt properties in your municipality
- By the total value of all the taxable properties in your municipality
So now you have some background on how much and how it is calculated. I hope by now you are asking the question why is it so high? To answer those questions take a look here. And from the NJBIA website are the three most costly reasons.
To sum it all up- Out of control spending on our schools, bad pension decisions and just the fact they those in charge have been able to get away with raising taxes without much backlash.
What do we need to do? In my humble opinion I will point you towards what I wrote earlier this year- Reducing taxes in New Jersey.
That is my opinion- Jumpin Jersey Mike