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LESSON ONE
First Remember that:
THE LOCAL PROPERTY TAX in New Jersey is in fact a LOCAL TAX.
This means that the tax is assessed and collected at the local municipal level for the support of:
LOCAL SCHOOLS
MUNICIPAL GOVERNMENT
COUNTY GOVERNMENT
THE STATE RECEIVES NO PORTION OF THESE PROPERTY TAXES.
As a matter of fact the State pays out 48¢ of every State revenue dollar collected to counties, municipalities and schools in some form of State Aid. In 1961, some 44 years ago, the State paid out 43 cents of every State revenue dollar collected.
In FY 2005 the State budgeted approximately $12,465.6 million in State funding for property tax relief programs for the following purposes:
($Millions)
Schools Aid $8,657.3
Municipal Aid 1,757.0
Other Local Aid 716.0
Direct Taxpayer Relief 1,335.3
TOTAL$12,465.6
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