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New Jersey Property Tax - Any Questions About NJ Property Tax?New Jersey is in close proximity to New York and possibly, with the geographical proximity, New Jersey has some similarities with NY property taxes, but also some gaping differences. More significantly, it is important to note that the real estate values in NJ are pretty similar to the ones in NY, and the property tax rates are not that different. It is how New Jersey treats those property tax rates where the real dissimilarities lie. Read on to find out why. What makes NJ fairly expensive in terms of Property Taxes is the amenities it offers to its citizens. With an old, historical city like New Brunswick taken for example, having about 50 odd churches, almost the same number of schools has high property taxes. Property taxes in New Jersey are relatively high because of the following reasons · Presence of lot of public amenities and services. You will find an unusually high number of schools, fire-fighting stations, police stations for a relatively small state of NJ. · A rule in the NJ where people staying outside city limits are exempt from paying property tax on their property. This puts a lot of burden on the people staying in the city limits to cough up a relatively higher property tax. · There is a law in NJ which allows certain categories of people to be exempted from paying property taxes on their property. This again is a contributor to some people having to pay high property taxes, whereas others do not pay at all. Imagine dividing $100 in two parts equally. Each part will value up to $50. In case, if you wish to treat $100 on a stand-alone basis, the value of that part is $100. That is the hypothetical explanation of a citizen paying property taxes in NJ. What really happens is that people stay outside the city limits, do not pay property taxes on their property (Just because the law exempts them to do so) and use the services provided which have been funded by the NJ property taxes. The tax rates in NJ follow extreme opposites of the graph. A simple comparison of Saddle River municipality (Tax Rate of 0.98%) and East Orange municipality (Tax Rate of 6.15%) indicates how disparate NJ Property tax is. NJ local governments have realized that this is a sensitive issue and are trying to work remedial measures to this. Until such time when no policy is documented and action is taken on, sadly, NJ residents will have to unequally share the burden of high property taxes. Whoever said that life is fair, was obviously not a resident of East Orange and therefore paying the higher NJ property tax. |