What the Library Tax Line Means

Did you notice the public library tax line on your municipal tax bill?

On March 21, Governor Chris Christie signed the Municipal Library Tax Levy Law. The purpose of the new measure, which took effect immediately, is to promote a better understanding of the costs of library services.

Tax bills already have a breakdown for the various entities of Essex County, Livingston School District, Open Space and the Livingston Municipal Services. 

The new law creates an additional line item on the property tax bill to fund the municipal public library. The new tax line item does not increase property taxes, but removes the statutory minimum library appropriation and shows it separately from the municipal rate.

State statutes provide for a minimum library appropriation equal to one-third of a mill, or one-third of one thousandth, of the Township’s total equalized property valuation. Equalized property valuation is the estimated market value of all taxable property within the Township. Until now, the minimum appropriation for the free public library has been funded through the municipal purpose tax rate.

Beginning in 2011, the minimum library appropriation will be funded through a “Public Library Tax” that will appear separately on the local tax bill. The municipal purpose tax rate will be reduced by the amount of the library tax. In municipalities such as Livingston, where library services are budgeted at a level higher than the statutory minimum, any additional appropriations above the minimum amount will continue to be funded through the municipal tax rate.