Study On NJ Property Tax Burden Pits Summit Vs. Greenwich
The loss of personal investment potential due to NJ's high property taxes is cited in the RegentAtlantic study.
In the study by wealth management firm RegentAtlantic, referenced this weekend in Your Money column in The New York Times, a hedge fund manager who chooses to buy a $1 million home will pay a property tax rate of 3.8 percent to live in Summit vs. 1.01 percent to live in Greenwich. In dollars, that's a $38,000 tax payment vs. a $10,000 payment.
"If this couple moves to Connecticut, lives there for 30 years, and invests their property tax savings at a net return of 8.5% a year, they will have an additional ~$3.8 million at the end of that 30-year period," states the report.
Click here to access the RegentAtlantic study on how taxation may affect migration to New Jersey called "Exodus on the Parkway: Are Taxes Driving Wealthy Residents out of New Jersey? The Impact that Incentives and Taxes Have on Choice of Domicile."