Hoboken Tax Increase

As many residents are aware, there have been huge budget problems in Hoboken recently. Apparently, gross mismanagement and poor record keeping have resulted in a huge budget deficit. The increase in the tax rate just came out with the recently mailed tax bills. The rates has gone from 34.90 to 42.93 per $1,000 of assessed value. In order to arrive at the taxes for the coming fiscal year, you multiple the current assessed value of the property (which is a fraction of what the property is actually worth if you were to sell it) by the tax rate. So, for example, if you own a property that is assessed at $220,000, you would have paid $7,678 for last year. This year, your property taxes would be $9,444.60.

This is something to be aware of when purchasing a property now. The taxes in most listings are from the tax records, which is 2007, so prior to purchasing, the assessed value should be determined (which is usually easily done by accessing the NJ tax records) and multiply by the new rate so that you have a better idea what your taxes will really be upon purchase. If you are a seller, it may be advisable that your attorney discuss the increase with the buyers' attorney during attorney review.