Monmouth County has taken a bit of a hit with respect to the revenues it was projecting to receive during 2020. That will have to be made up somewhere, and somewhere is into the pocketbooks of taxpayers. Surprise, surprise?
What exactly happened in 2020?
Well, the shortfall is estimated to be approximately $16.5 million.
Some of the increases will include the addition of $2.1 million for employees’ cost-of-living raises, which were required under employment contracts.
In addition, Monmouth County suffered a decrease of about $2.2 million in its total revenues due to the halt in the sale of foreclosures, which have been stalled due to the pandemic.
The area where the county exercised some self-control was in the freeze on hiring for positions except for those positions that were health emergency related.
The county attempted to act judiciously, anticipating there would be just such a shortfall. But the problem is that New Jersey currently is in the nation’s number one spot for property taxes. This could be problematic moving forward, as residents take into consideration the cost-of-living factor of living in New York City. In addition, New York City’s pandemic paranoia has closed many of those attractions that were once considered to be assets to local New Jersey residents.
According to some sources, Monmouth County property owners face a $6.1 million tax increase due to directly COVID-related troubles.
The problem with the tax increases is that they are based upon property values, most of which throughout the state have climbed 25% from 2019. The problem with the statistic is that the property appreciation values do not translate into hard dollars and cents into the residents’ pockets unless they decide to sell their homes. And that very well may prove to be a trigger or incentive for residents to take the appreciation in their properties and move to areas that have a lower cost-of-living. Time will tell what taxes are due.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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