The 2023 surge in U.S. property taxes has strained New Jersey’s economy, impacting residents amidst changing immigration policies.
At a Glance
- U.S. property tax revenues reached $363 billion in 2023, a 7% hike from 2022.
- New Jersey has the highest average property taxes, with Essex County paying $13,145 on average.
- Legislative changes since 2020 allow undocumented immigrants professional licenses in New Jersey.
- Inflationary pressures elevate the cost of local government and school operations.
Rise in Property Taxes Across the U.S.
Property taxes for U.S. single-family homes totaled $363 billion in 2023, a nearly seven percent increase from the previous year, as reported by ATTOM. This increase, the largest in five years, represents inflation-driven costs affecting local governments and school expenses. The nation’s average property tax bill has now reached $4,062. This surge has been attributed to inflationary pressures, rising public employee wages, and other major expenses supported by Rob Barber, CEO of ATTOM.
Average property taxes in 21 counties exceeded $10,000, with 12 of these counties lying within the New York City metropolitan area. The disparities in taxation across the country relate significantly to differences in service levels and small-scale municipal economies in metro areas.
New Jersey’s Property Tax Burden
New Jersey, known for having the highest average property taxes in the nation, saw Essex County residents facing an average bill of $13,145, notably contributing to economic discussions within the state. The increase has created challenges for New Jersey homeowners who might not have anticipated these costs in their housing budgets. The state finds it increasingly difficult to manage the financial burden on households.
This financial strain correlates with shifts in economic and welfare policies, influenced by legislation like Senate Bill 2455. This bill, enacted in 2020, permits undocumented immigrants to earn professional licenses, altering state economic dynamics and contributing to New Jersey’s current challenges.
Economic Implications and Public Response
The intersection of rising property taxes and immigration policies has incited public discourse in New Jersey. Governor Phil Murphy has acknowledged the challenges associated with the migrant influx, with state resources often feeling overwhelmed. Despite efforts to address the economic implications, voter dissatisfaction with national immigration policies persists, as reflected in recent polls.
“I don’t see any scenario where we’re going to be able to take in a program in Atlantic City or elsewhere in the state,” said the progressive governor, underlining the need for significant federal support that challenges current capacities.
Voter discontent in New Jersey continues to grow alongside frustration with rising taxes and the strain on welfare systems. As these economic challenges remain at the forefront, the state faces an ongoing conversation around balancing financial management and supporting its communities.
