Hillsborough residents facing municipal tax increase. Here's how much
HILLSBOROUGH – The Township Committee has introduced a $39.7 million budget that would raise the municipal use tax rate by less than 2%.
The municipal use tax rate, which funds police, public works, recreation and other township services, will go up from 29.2 cents per $100 of assessed value to 29.77 cents.
That means the gross municipal tax bill on a house assessed at $400,000, which does not include school district or Somerset County taxes, will be an estimated $1,190.75.
In 2023, the municipal tax on a home assessed at $400,000 was $1,168.
However, because assessments are revised, a house assessed at $400,000 in 2023 does not necessarily have the same assessment in 2024.
More: Hillsborough schools in 'financial shackles', facing 'draconian cuts'
The overall property tax bill, which includes school and county taxes, on a house assessed at $400,000 is estimated at $8,346, down from $8,590 in 2023. However, that is not a final calculation, pending the final adoption of the school budget.
The overall budget is rising 5.1%, an increase of $1.9 million from the 2023 budget.
The gross amount of property taxes to be collected for municipal purposes will be going up 11.91% from $22.2 million to $24.9 million.
The major increases in the budget are a 9.24% increase in salaries, an 80% rise in capital expenses and a 14.4% hike in debt service.
The budget is anticipating a 33.5% decrease in federal grants and a 22.22% decrease, $1 million, in the amount of surplus funds used in the budget.
The overall value of property in the township increased by 9.78% to $8.37 billion.
The budget was introduced by a 4-1 vote.
Committeewoman Samantha Hand said at Tuesday's meeting that she had received the budget on the previous Friday, which she said did not give her enough time "to dig into this."
Hand said she plans to spend more time with the township's chief financial officer to understand why certain decisions were made in the budget.
No other Township Committee member spoke on the budget.
A public hearing on the budget is scheduled for June 11.
Email: mdeak@mycentraljersey.com
Mike Deak is a reporter for mycentraljersey.com. To get unlimited access to his articles on Somerset and Hunterdon counties, please subscribe or activate your digital account today.
This article originally appeared on MyCentralJersey.com: Hillsborough NJ municipal taxes rising in 2024
