Homeowners spent 7.45 percent of income on property taxes in 2009
Gov. Chris Christie poses with mayors who signed onto his 2.5 percent property tax cap in June. Data collected by the census data shows that property taxes rose in 2009, while income fell.Property taxes in New Jersey ate up a greater percentage of taxpayers' paychecks in 2009 than in the previous year, as income fell while tax bills continued to climb, according to Census data compiled by a Washington, D.C., think tank.
New Jersey homeowners spent 7.45 percent of their income on property taxes in 2009, up from 7.02 percent in 2008, according to an analysis of Census data released today by the Tax Foundation. Median income fell in 2009 to $88,343 from $90,010, while median property taxes climbed from $6,320 to $6,579 over the year. The median is the halfway point in the data.
Some counties were hit particularly hard by the recession and rise in property taxes. In Passaic County, typical homeowners spent 9.7 percent of their income on property taxes, up from 8.7 percent the year before and the highest percentage in the country, according to the Tax Foundation. Homeowners in Passaic County saw their median income fall by about $3,000 to $82,038 while property taxes rose nearly $600 to $7,939.
In Union County, too, homeowners spent more of their paycheck on property taxes, bumping from 8.1 percent in 2008 to 8.7 percent in 2009, third highest in the nation.
Voter anger over high property taxes helped Gov. Chris Christie oust Jon Corzine in last year's gubernatorial race. In his first year, the Republican governor has ushered in a tighter cap on property tax increases that will apply to municipal and school districts budgets in 2011. Meanwhile, Christie is pressuring Democrats who control the Legislature to pass a series of bills — dubbed his "tool kit" — designed to allow local governments to run more efficiently.
Christie spokeswoman Maria Comella said the report emphasized the urgency of passing the bills, which include limiting raises to 2 percent and giving towns more power to lay off employees with seniority.
"This study further proves why it is so critical the Legislature stop wasting time and act on Gov. Christie’s tool kit of reforms," she said in a statement.
Democrats have argued that several of Christie's moves will translate into property tax increases, after individual rebates were slashed and as schools and towns compensate for cuts in state aid subsidies.
Deborah Howlett, president of the left-leaning think tank New Jersey Policy Perspective, said it's important to note many other states offset local property taxes with other local taxes, such as local income taxes, which are nearly nonexistant in New Jersey. She cited Christie's cuts to state education funding — including nearly $820 million, or about 7.5 percent of state funding — as contributing to higher taxes.
"Property taxes will not go down until state support for schools goes up, no matter how much money Mark Zuckerberg donates," she said, referring to the Facebook founder's pledge last week to donate $100 million to Newark schools.
Previous coverage:
• N.J. property tax cap meets first challenge in 12 percent health care costs hike
• N.J. property tax cap gives residents voting power over additional spending
• N.J. Senate approves 2.9 percent property tax cap bill
• Gov. Christie dismisses Sen. Sweeney's alternate property tax plan
| Gov. Christie tells Ohio what N.J. has done with capping property taxes |