Wednesday, July 30, 2008

Property Tax Hikes Hit Home

Once again, property taxes are going up in New Jersey. It's an annual ritual, and no one is happy. For those businesses in Paramus, the toll is going to be especially harsh. Many are going to see their property taxes go up 20%.

Expect to see more empty storefronts as businesses find themselves unable to pay the additional charges or lose profitability because the costs passed on to consumers takes a greater bite and fewer sales result.

It's a lose-lose situation for those who come to the shopping mecca along the Route 17 and Route 4 corridor.

And it doesn't have to be this way.

Bergen County continues to resist dropping the blue laws that prohibit sales on Sunday, even though it also means a loss in sales tax revenues. At a time when the municipalities are hurting, the blue law is an anachronism whose time has long passed. Sales that would otherwise occur in Bergen County are lost to neighboring counties and New York State.

Also, a 20% jump is going to hit home just as hard as any talk about mortgage rates and the real estate financing mess. It's curious that this doesn't get nearly the exposure since taxes take a huge bite out of the revenue streams of businesses and hit homeowners quite hard - especially those homeowners on a fixed income.

No comments: