Rise in Appeals Causes Municipal Budget Crunch

New Jersey municipalities are facing serious budget deficits, as they experience the fallout of reduced property tax revenues resulting  from a record number of property tax appeals filed in recent years.   Property owners who are successful in tax appeals are entitled to refunds under New Jersey law.  These refunds have created troublesome deficits at the local government level, and the prospect of even more appeals being filed in 2011 because of the relative success of property owners in the past two to three years raises red flags around the state for increased budget deficits.  With less monies being funneled to towns from the State, it is likely that local property taxes will need to be raised in order to try and close this gap, but the property tax cap mandated by Governor Christie will make it more difficult for New Jersey municipalities to raise revenues this way.

For more, read Matt Friedman’s article in today’s Star Ledger.