Re: New Tax Rate is Insane!
Posted by HeightsNative on 2018/3/13 8:12:33
But that doesn't fit the narrative spread by Yvonne and others that the city loses money with tax abatements. In this case, the city is getting A LOT more than they would if there was no abatement. Not just in total taxes, but since the city doesn't have to split with PILOT payments with Hudson County and the School Board.
What's the breakdown anyway? Most of the property taxes goes to the school board, right?
My understanding is that when it comes to regular property taxes in JC, the breakdown is about 50% city, 25% school, 25% county. Not sure if those numbers are 100% accurate.
As for abatements, 95% city, 5% county.
As yes, the reality of taxation in JC is SOOOOO different from what most people think, partly based on ignorance, and part on the lies and myths spread by people like Yvonne.
The city would lose a TON of money if the abatements were magically done away with overnight. They would have to raise taxes tremendously to make up the shortfall. At about ~128 MM/year, PILOTs account for about 36% of tax revenue. That means those abated properties are collectively paying ~135 MM/year. To collect the same amount of money (128 MM) the city would need to collect almost 260 MM, and that would be spread across all homeowners. Talk about tax hit. People should be wary of wanting to do away with all abatements.
Now imagine JC had to pay for its own schools! That would be a roughly $500mm hit to non abated properties. Heaven forbid that gives JC a property tax rate closer to the rest of the state!
That's the whole crux here; granting of abatements relies entirely on the fact that this state funding never goes away. That's a massive risk the mayor and council are taking (previous and current. And probably future). But, like with the reval, that will be someone elses problem down the road.
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