Wednesday, October 5, 2016

2016 Equalized Valuations Out

The Division of Taxation has come out with new Equalized Valuations for all towns in NJ.  These Equalized Valuations are for use in FY 2017, though are calculated in 2016.

("Equalized Valuation" is the market value of a town. It is computed annually and is used to apportion county taxes. It is supposed to be used to distribute state aid, but NJ's school funding law (SFRA) is non-operating.)

The state's total Equalized Valuation increased by 3.7%, from $1.166 trillion to $1.2 trillion, but, as usual, the increases in Equalized Valuation were very uneven.

Of that $43 billion increase, $11 billion (more than 25%) was in Hudson County alone.

As usual, Jersey City and Hoboken continued their stratospheric appreciations.

Jersey City's Equalized Valuation rose from $21.7 billion to $25.7 billion.  Jersey City's Equalized Valuation is now more than 2% of NJ's total.

Hoboken's Equalized Valuation rose from $13.3 billion to $15.13 billion. Last year Hoboken was in a tie for the fourth highest in NJ with Newark, but now Hoboken is in undisputed fourth place and is within $100 million of Toms River, the current third place occupant.

Hoboken's school tax rate will surely fall even farther below the 0.3% it has now.

Jersey City's school tax rate will fall below 0.5%.  If NJ distributed Equalization Aid under a formula, Jersey City would lose at least $30 million due to its increase in tax base.

Newark, Trenton, Elizabeth, Paterson, and Camden were more or less stable this year.

Atlantic City continues its collapse.  AC's EV was once the highest in NJ, but it is down another $2 billion and is now only $6.4 billion.  When new state aid figures come out in February 2017 Atlantic City will be ranked as even more exceptionally underaided.  Atlantic County as a whole lost over $5 billion in Equalized Valuation, so the whole region is hurting.


If Jersey City's PILOTed property were an independent city, it would be in the top ten for New Jersey.

Here are the top EVs in NJ for tax year 2017.
1. Jersey City (taxable) $25.7 bil
2. Edison $15.8 billion
3. Toms River $15.167 billion
4. Hoboken $15.128 billion
5. Newark $13.8 billion
6. Ocean City $12 bil
7.  Jersey City PILOTed $11.6 billion
8. Middletown $10.6 billion
9. Woodbridge $10.5 billion


See Also:
Divergent Fates of NJ's Big Cities

Two Cheers for County Taxes

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