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For Immediate Release: NJAR® Government Research Foundation Report Examines New Jersey Property Taxes and Options for Property Tax Reform(Edison, NJ) New Jersey property taxes are nearly 60 percent higher than the U.S. average as a share of gross state product, according to a new study released by the New Jersey Association of REALTORS® Government Research Foundation (NJARGRF). The New Jersey Property Tax: Issues and Options examines New Jersey's relationship to the United States as a whole and to several other high cost states in terms of both property taxes and other taxes. Prepared by independent researchers Donald J. Boyd and William F. Fox, the report also explores alternatives for financing property tax relief. A comparison of the effective tax rates on residential and business property in New Jersey and the comparison states (California, Massachusetts, Michigan, New York, Ohio, Pennsylvania and Virginia) shows "residential property taxes are far higher in New Jersey than in the U.S. on average, and usually considerably greater than in the comparison states." Taxes on business property are more in line with other states. While both property taxes and overall taxes in New Jersey are high, the income and sales tax are much lower than in other states, as a percentage of gross state product. (The study, dated June 7, 2006, does not take into account the recent increase in and expansion of New Jersey's sales tax.) "Working with sellers and buyers of residential and commercial property, REALTORS® are well aware of how property taxes impact the transaction. Property taxes can make it difficult for some buyers to afford a home and for some homeowners to remain in their homes," said NJARGRF President Allan Dechert. "The NJAR® Government Research Foundation commissioned this study to assist the public, state legislators and other interested parties in any discussions of property tax reform. This is an issue that is important to every property owner in the state." The report identifies three general options for financing a reduction in New Jersey's property tax: reduce the size of government, raise other taxes and finance more government services with user fees. The alternatives examined by the authors include cutting property taxes by reducing spending or cutting government employment; by raising sales or income taxes, taxing additional services, or raising selective sales taxes, adding taxes at the local level; or by charging user fees for select government services. The New Jersey Property Tax: Issues and Options was prepared by Donald J. Boyd and William F. Fox. Donald J. Boyd is the director of the Fiscal Studies Program at the Rockefeller Institute of Government, the public policy research arm of the State University of New York. The Fiscal Studies Program provides practical independent research about state and local government finances in the 50 states. Boyd also is deputy director of the Center for Policy Research at the University at Albany, where he focuses on research relating to education issues and teacher labor markets. William Fox is the William B. Stokely Distinguished Professor of Business and the Director of the Center for Business and Economic Research at the University of Tennessee. Fox has served as a consultant in approximately 25 countries and more than 10 U.S. states on a wide range of public policy issues. He has published extensively in academic and nonacademic journals and is a frequent speaker to business, government, and academic audiences around the world. An executive summary is available on the NJARGRF website at http://www.njar.com/njargrf.shtml. The full report may be accessed directly at http://www.njar.com/NJARpropcomplete.pdf. The NJARGRF was formed in 1999 to research issues; to promote knowledge of, conducted research, and assist in issue research in the field of real estate and related fields; and to inform and educate the public on subjects of the public interest and general concern pertaining to real estate, land use and related topics. The New Jersey Association of REALTORS® is a non-profit organization serving the professional needs of approximately 55,000 REALTOR® and REALTOR-ASSOCIATE® members in the state. REALTOR® is a registered collective membership mark which may be used only by real estate professionals who subscribe to the REALTOR® organization's strict Code of Ethics and are members of the National, State and Local REALTOR® organizations. # # #
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