Officials cite $645,000 decrease in state aid as the major culprit
PETERSBURG — Another tax increase is in the works for Upper Township residents after Township Committee introduced its budget March 10 calling for a 2.9-cent rate hike – a 9.86 percent increase.
The $45.6 million spending plan includes a tax levy of $6.2 million, up $594,384 to offset the loss of $645,000 in state aid as well as increases in costs across the board.
“Nothing is cheap anymore,” auditor Leon Costello said.
Mayor Curtis Corson said there would have been no increase to the tax rate had the township not lost the state aid.
“Some things are out of our control,” he said.
The rate increase boosts the total rate to 32.3 cents per $100 of assessed value, or $323 on each $100,000. The owner of a $300,000 home would see a municipal tax bill of $969.
There also is an 11-cent fire district tax rate that amounts to $11 on each $100,000.
The Cape May County Board of County Commissioners introduced its $224 million budget Feb. 25 with a tax rate reduction of 1.9 cents to 16.9 cents, a decrease of $190 on each $100,000. The rate has fallen steadily since 2021, when it was 23.4 cents.
The Upper Township Board of Education has yet to introduce its budget, but the township estimates its tax rate at $1.56 per $100, or $1,560 on each $100,000.
The estimated total tax rate is $2.296 per $100 or $2,296 per $100,000. The owner of a $300,000 home can expect to pay $6,631 in taxes.
The township’s local revenue is expected to drop $482,991. Deputy Mayor Victor Nappen suggested the township institute a tax on short-term rental properties to generate revenue.
“My thought is to try to tap into the transient tourist market. It’s a common sense way to raise revenue,” he said, adding tourists would bear the cost.
Nappen noted Middle Township charges a 3 percent tax on short-term rentals.
“This could be a substantial revenue grab,” he said.
Corson said one of the primary uses for housing in the Beesley’s Point Development Group’s project on the grounds of the former B.L. England Generating Station would be short-term rentals, suggesting they institute a tax before the project is completed.
Solicitor John Amenhauser said that area is currently exempt from short-term rental regulations and that he would work on an amendment to the ordinance for later consideration.
Meanwhile, the tax rate continues to rise. Last year, Township Committee approved its municipal budget with a $301,980 increase in the tax levy and a 1.4-cent increase in the municipal tax rate.
The tax levy rose 5.7 percent to $5,618,158 for 2024, while the tax rate rose 5.1 percent to 29.4 cents.
The rate rose 2.8 cents in 2023, 3.3 cents in 2022 and 1.8 cents in 2021, for a total increase of 12.2 cents over the past five years, or 60.7 percent. During that period, the ratable base rose from $1.878 billion to $1.923 billion, a 2.4 percent increase.
A public hearing and final vote on the spending plan is scheduled for April 14.
– By CRAIG D. SCHENCK/Sentinel staff
