The Wall St. Journal reports today that “more than a dozen New Jersey towns could lose at least 10% of their tax base due to property damage from superstorm Sandy, a hit that could lead to property tax hikes in towns if federal assistance doesn’t help plug the budgetary holes. An additional 10 municipalities could lose between 5 and 10 % of their tax bases from Sandy damage, according to a notice released by the state Local Government Services Wednesday.”
What does that loss in the value of property have to do with education? NJ public schools are funded through property taxes. If the total assessment goes down due to Sandy damage, then local taxes go up to cover the difference – not possible when tax increases are capped at 2% -- or districts cut programs.
Here’s my earlier coverage at WHYY Newsworks.
The Journal notes,
In the borough of Tuckerton, for example, officials estimate that the Ocean County locality lost $90 million from its tax base, according to information provided by the state. The town lying on the Little Egg Harbor has a population of just 3,300.
Further south, Port Republic lost as much as $2 million in property values, with the city hit by flooding from the Mullica River after Sandy.
Labels: school funding