Northern New Jersey Real Estate » hoboken real estate http://www.newjerseyrealestateguys.com New Jersey Real Estate Tue, 31 Jan 2012 14:42:36 +0000 en hourly 1 http://wordpress.org/?v=3.3 The 411 on Hoboken Tax Increase http://www.newjerseyrealestateguys.com/blog/the-411-on-hoboken-tax-increase/ http://www.newjerseyrealestateguys.com/blog/the-411-on-hoboken-tax-increase/#comments Mon, 12 Jan 2009 23:11:30 +0000 admin http://www.newjerseyrealestateguys.com/?p=230 property-tax-billHoboken, New Jersey residents are up in arms lately since just a couple of months ago, the city announced a nice 47% increase to property taxes.  Many residents assumed that if they had an annual property tax bill of $10,000, their new tax bill would be $14,700.  Fortunately this is not the case so we are going to sugarcoat it as much as possible.  What we know is that your Hoboken property tax bill is divided into 3 parts.  The tax increase only applies to the City of Hoboken portion.  After taking that into consideration, your tax bill overall may go up about 20%.  It is 47% ONLY on your City of Hoboken portion.  Due to tax bills being quite confusing, many residents have panicked over what the facts were.

Many believe that the mayor is giving wishy washy answers on the increase saying that the taxes will only be applied for the first and second fiscal quarters of 2009. 

Obviously this tax increase could not have come at a worse time with the financial market meltdown, loss of jobs, bonuses, etc.  Some real estate agents call this the “perfect storm.”  However, it’s not that people are saying NO to real estate, they are just offering much lower prices.  Due to this real estate tax increase, sellers are going to have to accept lower offers if they want to sell their property. 

Purchase prospects may find that this is the time to buy.  Sellers, already in distress, now have to deal with a higher tax base which will apply additional pressure on them to settle.  Property taxes are part of your monthly expenses typically.  An increase of $4,000 annually is roughly $333 per month.  There are some that are trying to off-set the property tax increase with lower offers.  One buyer we were speaking with this week mentioned that over 30 years, $333 per month is equivelent to over $60,000.  So the buyer wanted to lower the offer by $60,000 after learning of the tax increase.  It really depends on what the city of Hoboken has planned but the mentality of buyers and sellers has certainly been altered.

Several rallies have been formed to speak out against this tax increase.  Mayor Roberts is not a popular man today, however in order to correct this city and get out of a deficit, this is necessary or Hoboken will have a never-ending black eye over its community.  Believe it or not, we are quite popular for only being one square mile.

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