As municipalities continue being hammered with tax appeals, billions of dollars in revenue are being lost by the state. In 2011, muncipalities in New Jersey lost in excess of $3.8 billion dollars in their tax base due to reduced assessments – more than twice the amount in 2008. And with the housing not poised for a full recovery anytime soon, we can expect further blood loss in the years to come.
This depletion in the tax base has many towns struggling with how to deal with the shortfall. Raising the tax rate seems to be the most common answer, something we’ll no doubt witness happening in the most cash-strapped towns.
The best muncipalities can do right now is what many are opting to: that is, avoiding incurring the expense of taking assessment appeals to court and settling instead.
Some sanity at last.
Swamped with a near-record number of tax appeals, New Jersey municipalities are choosing to settle more than ever rather than fight them, costing the state billions of dollars in lost tax base and wreaking havoc on local budgets, a Star-Ledger analysis has found.