Tax Hike Approved In Newark; City Council Passes 2023 Budget

NEWARK, NJ — Property taxes are going up in New Jersey’s largest city.

The Newark City Council approved the 2023 municipal budget at their meeting last week, voting unanimously in favor of a resolution that authorizes an $823.91 million spending plan. A homeowner with a property valued at $189,640 – the city’s average – will see a $109 increase to the municipal portion of their taxes, up 3.5 percent from last year.

Watch a video of the budget hearing (video is cued to the hearing; article continues below).

Council member Carlos Gonzalez – who chairs the budget committee – said he feels the spending plan is a “fair representation of the state of the city.”

Gonzalez said the city has had some difficulties balancing previous municipal budgets, but this year’s version comes without a “significant” tax increase. The $109 average tax hike is one of the lowest he’s seen as a councilman, he added.

Business Administrator Eric Pennington previously said the tax hike is due to the “loss of special state and federal funding,” and increased costs the city has had to absorb. See Related: Newark City Council Approves Sewer, Water Rate Hikes

At-large council member Louise Scott-Rountree said the budget crossed the finish line “a little earlier” this year, although she added that “we can probably do a little bit better next year.”

“We have to vote, we have to review … and we're held accountable for what we say yes to and what we vote on,” Scott-Rountree said.

Several community members spoke about the budget during the public comment portion of the hearing. Pennington responded to their comments afterwards. Watch the footage below (video is cued to the discussion).

Property taxes in New Jersey are generally made up of three parts: school, municipal and county. Read More: Average Property Tax Bill In Newark Is Growing, Latest Data Shows

Local voters overwhelmingly approved the 2023-2024 budget for the Newark Public School District in the school election on April 25. The school budget did not have a tax increase for local homeowners. Read More: See Election Results For Newark Board Of Education, Budget

Essex County Executive Joseph DiVincenzo Jr. presented an $885.4 million budget for 2023 earlier this year. Homeowners would see the county portion of their property taxes rise by about 1.5 percent under the proposed spending plan, his office said. Read More: Tax Hike Expected In 2023 Essex County Budget, Official Says

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