Will Highlands result in higher taxes?

A letter to the Star Ledger:

Highlands Act will raise property taxes

A letter writer last week was absolutely correct the Highlands Act will limit population growth. So at first blush, it sounds plausible it should also keep the county tax rate steady. However, the Highlands Act will still cause homeowners’ tax bills to increase.

That is because rates are based on the value of land and improvements.

With real estate experts saying the Highlands Act has reduced the market value of the land, that means its assessed value will eventually drop, too. When that happens, tax bills will drop but homeowners who have improved the land will need to make up the revenue shortfall.

So what if business ratables are increased? Well the Highlands Act places severe controls on that. Some are already considering leaving the Highlands if they can’t expand. If they leave, you know this will also increase our taxes.

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