New Jersey Society of Certified Public Accountants (NJCPA) and New Jersey Realtors have teamed up to offer New Jersey residents a comprehensive guide to understanding property taxes. The publication, “New Jersey Homeowner’s Guide to Property Taxes,” answers everyday questions homeowners have about how their home’s value is assessed, how their tax bill is created and where tax dollars get allocated. The guide will be published in September.
The guide, which is authored by Marc Pfeiffer, assistant director, Bloustein Local Government Research Center, Rutgers University, includes tax rate formulas, assessment calculations and town budget information as well as a breakdown of taxes by school, municipal services, recreational use or infrastructure needs.
Its creation comes as property taxes are top of mind among New Jerseyans, particularly as the state has the highest property taxes in the nation. New Jersey’s budget, which was approved in July, raised the state’s income tax deduction for property taxes to $15,000 from $10,000. The 2017 Tax Cuts and Jobs Act limited the annual deduction for state and local property taxes to $10,000 for federal tax purposes.
“Homeowners have many unanswered questions about where their tax dollars actually go and how taxes are broken down in their taxing districts,” said Ralph Albert Thomas, CPA (DC), CGMA, CEO and executive director at NJCPA. “This guide is a great way to find answers to difficult questions and help homeowners plan accordingly.”
“We’re excited to be able to offer this guide to homeowners and potential homeowners. Taxes are a complicated part of the buying process, and we hope this guide will provide clear, simple information and answers,” said Jarrod C. Grasso, RCE, CEO, New Jersey Realtors.