Breaking Out the Pitchforks Over Tax Hikes

Things got testy in Hoboken, New Jersey last night when the elected officials came under withering attack from homeowners who were just hit with a massive 47% hike on property taxes.

That's right folks. 47% tax hike.

The story says that the folks didn't break out pitchforks, but they should have.

For someone owning a home worth $250,000, that's a $625 to $650 increase per quarter. President Obama's tax "relief" wont even cover a quarter's worth of additional taxes in Hoboken. So, how did things get to this point in Hoboken?

Organized by taxpayer advocacy group Hoboken Revolt, several members of the public spoke in front of the crowd. They called for deep cuts in Hoboken's expenditures, to reduce Hoboken's budget, and for more transparency in Hoboken politics. Several people also demanded Hoboken stop issuing PILOTs, or payment-in-lieu-of-taxes plans for Hoboken's newest apartment buildings.

"We're upset with the fact that money is being spent but nobody seems to know where it's going. Nobody is held accountable," said Hoboken newcomer Toby Rofsky, as cries of "Show me the money!" filled the air.

Hoboken's municipal tax levy skyrocketed when the city was taken over by the state of New Jersey because it failed to pass a 2008 municipal budget. To fill budget gaps and a deficit, the state doubled Hoboken's tax levy, from $34 million in fiscal year 2008 to $65 for fiscal year 2009. That sent the property taxes skyrocketing up 47 percent.

Hoboken's political disaster became compounded by the state's fiscal mismanagement, which sent taxes skyward. Reductions in spending were never even considered. It was all about hiking taxes. That's also on Democrat Gov. Corzine and the state legislature.

And here's the thing; there are many people who are on fixed income or who have already paid off their homes. These tax hikes are what will drive many into contemplating bankruptcy or foreclosure because they cannot afford to remain in their homes as a result of the tax hikes.