I’ve been saying this for years:
At the heart of the matter is a simple math problem: the average cost of educating a child in New Jersey is $12,981, while the median property tax bill is $5,352, according to Census data. Although our property taxes are the highest in the nation, they can’t even begin to cover the cost of educating one child. And state aid for education fails to make up for this shortfall.
The result? Most Garden State towns make the economically rational choice to zone out housing for families with children. What’s favored instead is high-end or senior housing and commercial properties, because this kind of development brings in higher tax revenue and fewer demands for local services. This is why New Jersey has so many McMansions and malls, and not nearly enough homes that working families can afford.
Property taxes put towns in the position of chasing ratables. Commercial development decisions are based on how much in taxes the proposed business will pay and not on other economic issues — like putting jobs where they are needed — helping to promote sprawl and guarantee that jobs leave the cities. So we end up busing people from Trenton and New Brunswick up Route 130 to the warehouse zones in South Brunswick and Cranbury to jobs that local residents either do not need or would not consider. The process also short-circuits redevelopment, encouraging warehouses and corporate parks to move to formerly rural areas where taxes are lower.
The solution? There are several, including relying less on property taxes and more on the income tax, some for of tax-base sharing, increasing state aid to school and so on.
It is just another reason why the debate over taxes in Trenton is the single-most important issue of the year in New Jersey.
South Brunswick Post, The Cranbury Press
The Blog of South Brunswick
Hank Kalet 