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Boro forced to send estimated tax bills
(by Tom Boud - June 30, 2008)
For the first time in at least a decade, the borough is sending out estimated tax bills.
The total predicted levy hike on the statements, which are being mailed this week, is 14 points. The average borough home, valued at around $180,000, will see an increase of about $250, according to Ida Renne, borough tax collector.
The 14-point hike comprises town, school, and county taxes. The regional school levy this year actually went down, due to a high school funding formula. The municipal tax increment is expected at four points, whereas the county's is anticipated at seven. The remainder is the local education district.
West Paterson has not yet adopted its spending plan. Both state aid and county tax numbers have not been finalized. The municipality needs to issue estimated tax bills to collect money for borough operations.
Renne, who has been with the borough for 11 years, said 2008 marks the first time she has seen levy forecast statements issued. All finalized figures will be in September's tax bill mailing, she added.
Councilman Keith Kazmark said Trenton has yet to decide on restoring two tax points of cut general state aid. He said West Paterson has lobbied its district state legislators on the issue.
He said the two tax points (totaling about $160,000), if fully reinstated, would halve the four-point town tax rise. Kazmark said even a partial amount would be welcome.
Given the slumping economy, the interim invoices prevent taxpayers from facing close-occurring bills. In previous years, residents had gotten tax statements in September, only to get another one in November, Kazmark said.
"Asking someone to make two payments in one-and-a-half to two months is just not the right thing to do," he said.
Mayor Pat Lepore said he favors going with estimated tax bills. He said tardy notices cause some confusion, resulting in missed due dates and penalties.
Lepore also said not sending estimated bills would force West Paterson to take out a loan, and that such a move would cost $10,000 or more in interest.
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