What is the primary source of local revenue in New Jersey?

The primary source of local revenue in New Jersey is property tax. This form of taxation is levied on real estate and is primarily used to fund local services such as public schools, police and fire departments, road maintenance, and local government operations. Property taxes are assessed based on the value of the property as determined by local tax assessors, which allows municipalities to generate stable and predictable revenue.

Unlike sales tax or income tax, which are primarily collected at the state level, property tax is a crucial revenue source that directly supports community services. This structure is consistent across many localities in New Jersey, where property taxes account for a significant portion of municipal funding, reflecting the reliance on real property values to support essential local functions and infrastructure.