Tax Hike Possible In West Orange Town Budget (See Early Numbers)

WEST ORANGE, NJ — The proposed municipal budget in West Orange currently has a tax levy increase that tops 6 percent, a town council member says.

On Monday, council president Joe Krakoviak released his early evaluation of the town budget, which may see changes before it crosses the finish line.

View the draft budget online here. Krakoviak’s post can be seen online here and here.

“The mayor has proposed a 6.2 percent increase, or $4.55 million, in the three taxes that comprise the total municipal tax levy in her draft 2025 municipal budget,” Krakoviak said, adding that the spending plan was emailed to the council on April 16 after “significant delays.”

The proposed total municipal tax levy is $73.3 million, he said.

According to Krakoviak, the budget projects that the average home value in West Orange jumps from $336,878 last year to $615,472 this year. Combining the municipal and library taxes (no example is provided for the municipal open space tax) projects a 6.24% tax increase to $4,456.14 from $4,194.42 last year.

Krakoviak told Patch that the previous town council approved 3 percent annual pay raises for everyone covered by labor contracts last year, which may explain part of the increase.

Other highlights in his analysis include:

• “The proposed tax levy is likely inflated by the municipal open space tax, which is based on the tax base. Because of the revaluation increase to market values after a decade of growth in prices, the proposed tax is up 82.3%, nearly $451,000 to nearly $999,000.”
• “The library tax is also based on the tax base. The proposed 2025 levy increases 11.6% to $2.83 million, or a little more than $293,000.”
• “The proposed budget has a slight increase in spending, generally called appropriations, in the mayor’s proposed 2025 municipal budget. That proposed increase is up just over $900,000, to $101.6 million.”

Krakoviak offered some background about the budgeting process in West Orange:

“Under our form of government, the mayor proposes the annual budget that the council reviews and, with sufficient votes, can change to reach a final adopted budget. Residents have a chance to provide input at a public hearing once the council proposes its budget. So these numbers in the mayor’s proposed budget are subject to potential change by the council.”

“The mayor’s budget also projects the other elements that make up your property tax bill,” Krakoviak added. “It’s important to keep in mind that these are best guesses, since the related budgets have not been approved and adopted.”

TAX REVALUATION IN WEST ORANGE

The tax rate in the proposed municipal budget is “complicated” by the town’s recent property tax revaluation, Krakoviak said.

West Orange recently carried out a revaluation campaign – the first it has seen in more than a decade. The mandatory program was ordered by the Essex County Board of Taxation and approved by the New Jersey Division of Taxation.

During a revaluation, all local properties are reassessed to find out their current “full and fair value.” The goal? To make sure each home or business owner is paying their fair share toward the town’s overall tax burden.

Although almost all property values rise during a revaluation, it doesn't necessarily mean that all property taxes will increase, experts explain: some may rise and others may fall (learn more here).

>> Read More: 'Scary Numbers' For Some West Orange Homeowners Amid Tax Revaluation

“While the tax rate declines significantly to account for the large increase in the tax base, it is not comparable to last year’s rate,” Krakoviak wrote in his Monday post. “The decline this year reflects the increase in the assessed value of property, which in turn is designed to bring assessments in line with market value.”

Krakoviak isn’t the only municipal official who has recently commented on the revaluation.

In January, the town’s municipal tax assessor, Jacob Nieman, spoke about the revaluation, commenting that “people really want to live here, and they’re willing to pay a very hefty price to do so.”

The town saw “widespread” increases in home values, which were not confined to specific pockets or neighborhoods. Residential homeowners saw their property values increase by an average of $343,513 – about 82 percent (the median average increase was $274,600 or 89 percent).

In total, the value of all property in West Orange increased by 84 percent. However, the breakdown of the town’s value distribution remained largely unchanged, Nieman reported:

• Residential – 72%
• Commercial – 17%
• Exempt – 10%
• Vacant Land – 1%

TAXES IN WEST ORANGE: QUICK GLANCE AT THE NUMBERS

Property taxes in New Jersey are mainly made up of three parts: school, municipal and county. Here’s how that played out in West Orange for 2024, according to state data (percentages rounded up):

• School – 61.8%
• Municipal – 26.8%
• County – 11.4%

This year, the West Orange Public School District is facing a budget gap due to a big drop in state aid, and rising operational costs. Dozens of staff cuts are currently on the table. Read More: West Orange Schools Hack Away At Budget Gap (See Possible Cuts)

In 2024, the average West Orange resident paid $15,778 in property taxes on a home valued at $336,878 (not including credits and deductions).

Here are the previous five years for comparison:

• 2023 – $15,475 in taxes on a home valued at $336,591
• 2022 – $14,920 in taxes on a home valued at $336,282
• 2021 – $14,701 in taxes on a home valued at $337,703
• 2020 – $14,484 in taxes on a home valued at $338,106
• 2019 – $14,086 in taxes on a home valued at $338,561

Statewide, the average tax bill topped $10,000 for the first time in 2024, landing at a record-high $10,095 – which is still well below what West Orange residents are paying. Read More: Here's How Much West Orange Homeowners Pay In Taxes (2025 Update)

Some experts have pointed out that a high tax bill doesn't necessarily mean a homeowner is getting ripped off, however – it depends on what you get for the money.

“While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, it's worth noting that property taxes are largely rooted in the ‘benefit principle’ of government finance – the people paying the bills are most often the ones benefiting from the services,” researchers from The Tax Foundation recently wrote.

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