Poll Released on Income Tax Day Shows Property Taxes A Bigger Problem

MONMOUTH UNIVERSITY — Today (April 15) is Tax Day: never an enjoyable time, but particularly unwelcome during an economic downturn. The latest Monmouth University/Gannett New Jersey Poll finds that most New Jerseyans are still under financial stress from the recession. And although today’s focus is on income taxes, Garden State homeowners say their property tax bills present the bigger burden.
Overall, 71% of New Jerseyans say their finances are basically OK right now, but only 8% are willing to say their family’s financial situation is in “very good” shape. This compares to 28% who say their current economic circumstances are in bad shape. These findings are similar to polls conducted in both 2008 and 2009.
While most New Jerseyans may be staying afloat financially, they are struggling. More than 4-in-10 (43%) self-described middle class residents say they are struggling to remain in the middle class. This compares to half (50%) who feel that their socio-economic status is stable and just 6% who say they are moving up beyond the middle class. These findings are nearly identical to a national ABC News poll released last month.
New Jersey middle-class residents who earn less than $50,000 (57%) are more likely to say they are struggling to remain in the middle class, when compared to those earning between $50,000 and $100,000 (40%) or more than $100,000 (34%).
Fully 6-in-10 state residents report that current economic conditions are causing them personal stress. This includes 31% who are under serious stress and 30% who are under some stress. Another 39% say that the economy is causing no real stress in their own lives. These findings are just slightly improved from a poll conducted last year.
New Jerseyans under serious stress include 38% of families earning less than $50,000 a year, 27% in the $50,000 to $100,000 bracket, and 28% of those earning more than $100,000.
“New Jerseyans are feeling the same economic stresses as families all across the country. The one thing that sets us apart, though, is the burden of property taxes,” said Patrick Murray, director of the Monmouth University Polling Institute.
The poll asked New Jersey homeowners which of their tax bills is actually higher, their property tax or state income tax. Nearly two-thirds (65%) say they pay more in local property taxes, while just 18% say they pay more in state income taxes. These findings are fairly consistent across all income groups.
It’s not surprising, then, that 8-in-10 (80%) homeowners say, if given the choice, they would rather have their property tax bill reduced before their state income tax (17%). Even a majority (54%) of those who currently pay more in state income taxes say that lowering their property tax bill is the bigger priority.
“It makes you wonder if the Tea Party movement could have more success in New Jersey if it concentrated on reducing local property taxes rather than on national issues,” said Murray.
The poll also found that 53% of New Jerseyans say they would like to move out of New Jersey at some point, compared to 43% who would prefer to remain in the state for the rest of their lives. The number who want to move out represents a slight tick up from 50% in 2009 and 49% in 2007. These past polls indicated that the state’s high property tax burden is the main reason people want to flee New Jersey.
Nearly half (47%) of all New Jerseyans in the poll describe themselves as being in the middle class. Another 37% say they are working class or lower and 14% say they are upper middle class or higher. These numbers are similar to the recent ABC News poll. Being middle class is in the eye of the beholder, as this self-designation is made by 42% of those earning less than $50,000 a year, 48% of those in the $50,000 to $100,000 bracket, and 47% of those earning over $100,000.