Thursday, May 3, 2012

Drop in Property Values and Increase in Tax Appeals Impact New Jersey's "Third of a Mil" Library Funding Formula

Third of a mil funding for four local libraries drop. (, 5/3/2012)

Excerpt: Four local libraries are dealing with less mandatory funding than last year, according to state figures, and the problem could get worse if the municipalities they're based in continue to lose value. As property values drop, more tax appeals are won and towns do reassessments, towns' overall values drop. The North Arlington Public Library has seen its third of a mil funding drop in the past few years, and because of additional costs it is now responsible, will have to reduce summer reading programs and book buying for the children's section. 

Library funding is tax-based, and is tied directly to property values in a community. Under state law, local libraries receive funding through the "a third of a mil" formula, which means one third of a dollar for every $1,000 of a municipality's equalized total value goes to the library.

Other south Bergen County libraries mentioned in article:
The William E. Dermody Public Library, Carlstadt.
Lyndhurst Library.
Rutherford Public Library.

PowerPoint from New Jersey State Library Trustee Resources

Once upon a time, libraries could bank on an annual increase in equalized property valuation.

Related posts:
The downward trend in property tax collections.  (3/13/2012)
The property tax domino effect.  (12/27/2010)
Wisconsin Department of Revenue releases equalized values.  (8/13/2010)

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