New Jersey Is Really a State of 500 Micro-Economies New Jersey has 564 municipalities. That means 564 different budgets, 564 different school systems or school funding obligations, and 564 different sets of priorities. Each town chooses: • How much money it needs • How to balance its budget • How much commercial property tax revenue it has • How much residential burden it will require A town that needs fifty million dollars a year to run its schools and services but only has a small commercial tax base might put the majority of that burden on homeowners. Another town might need the same fifty million dollars but receive half of it from malls, office parks, or industrial zones. This is why two homeowners with similarly priced homes can have tax bills that differ by ten to fifteen thousand dollars per year. The Role of Schools and Community Services Schools represent the largest part of property taxes in most towns. If a district is known for excellent schools, families are willing to pay a premium to live there. But here is where things get interesting: some of New Jersey’s best school districts are located in towns with moderate taxes because they have managed their budgets well or benefit from strong commercial contributions. Meanwhile, some districts with very high taxes are not necessarily outperforming others academically. This is where doing your homework becomes powerful. You might discover a town with great schools, lower taxes, and the same or better home values than where you currently live.
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