New Jerseyans “Only” The 2nd Most Taxed in The Nation

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

Home » Property Tax Appeal » New Jerseyans “Only” The 2nd Most Taxed in The Nation

by: Anthony F. Della Pelle

26 Oct 2012

Tax (Photo credit: 401(K) 2012)

NJBiz reports that state residents paid 12.4% of their income in state income and local property taxes, which is the second highest percentage in the nation behind New York. While NJ has held its unenviable second place position since 2005, the 12.4% rate is the highest it has been since 1977. A copy of the NJBiz article may be found here.

The NJBiz article notes that there may be some relief to the local property tax burden as a result of the 2% cap instituted two years ago. However, property tax bills have two components, the tax rate and the tax assessment. The 2% cap only limits the rate of growth in the tax rate. The cap does not impact the assessment, which is supposed to reflect market value. However, as property values continue to decline, municipalities are not reducing assessments. As a result, while the rate of growth in municipal taxes may be slowed as a result of the 2% cap, a property owner may still be overtaxed if its assessment is too high. In such cases, the only way to reduce the assessment is to file a tax appeal.

If you have any questions about whether a tax appeal may help lessen your local property tax burden, please contact McKirdy & Riskin. One of our tax appeal attorneys will review you matter and help you decide whether a tax appeal makes sense for you. There is no charge for our initial consultation.