What is the primary source of revenue for municipalities and counties in New Jersey?

The primary source of revenue for municipalities and counties in New Jersey is property taxes. This revenue stream is crucial because property taxes provide local governments with the funding necessary to deliver essential services, such as public safety, infrastructure maintenance, education, and community programs.

Property values in a municipality are assessed, and the resulting tax levied is based on the assessed value of real estate, making it a stable and predictable source of income for local governments. Unlike sales taxes, which can fluctuate based on economic conditions and consumer spending, property taxes tend to provide consistent revenue over time, as property ownership remains relatively stable.

In contrast, while sales tax, income tax, and corporate tax contribute to the state's overall revenue, they primarily fund state-level initiatives rather than serving as the main income source for local municipalities and counties. Sales tax relies on consumer activity, income tax depends on the earnings of residents, and corporate tax is tied to business profits, all of which can vary significantly and don’t provide the same reliable support that property taxes do at the municipal level.