A comparison of effective property tax rates during the past year with Old Bridge and East Brunswick, our largest bordering communities with similar forms of government, shows Monroe homeowners paying far less. When comparing similar home values, Old Bridge property taxes are 31 percent higher, and East Brunswick is 33 percent higher. While Monroe Township homeowners continue to pay low property taxes for the primary tax issue, still unresolved in the state is whether the property tax or income tax should be the main source of revenue to pay for local government services, especially schools. Up until now, we have relied upon the property tax in New Jersey, while most states have opted for the income tax as a fairer and more progressive funding source. Proponents of the income tax argue that it offers a far less burden for homeowners on a fixed income, those who are temporarily unemployed, and middle class income earners.
New Jersey has one of the highest per capita property tax rates in the United States.
A major cause is the fact that the state pays less than 40 percent of the total cost of education. On the average, other states pay approximately 55 percent. A primary reason for maintaining low property taxes in Monroe Township during the past decade has been the extensive effort set forth by township officials in the area of planning and development. The Township's Master Plan has placed a major emphasis on controlling growth, maintaining low property taxes and open spaces, while continuing to offer quality municipal services and schools. Another main reason for low property taxes in the Township continues to be residential development that includes housing in our retirement communities.