HSH,
If all goes well, I will be a neighbor of yours over in Bloomfield. I am a resident of Manhattan currently. I think to really understand the tax situation in NJ; one has to understand that NJ is a unique state in our country. It boasts two highly dense metro areas in the state, in which the actual cities are not within in the state. I will live in NJ, but work on Manhattan. I’m sure there is a significant segment of the population in both northern and southern NJ where that is true. Since the state in which I work gets the income taxes (in my case New York), that probably leaves NJ a bit short on its state budget, and thus where other states can share the wealth of the taxes gathered from their metro areas NJ cannot, leaving the small towns with high property taxes to fill the needs of their citizens.
Thankfully, when I move, I will no longer be liable for the NY City income tax that will offset the high property taxes in NJ. - Sun Nov 22 2009, 09:15