What is the primary source of funding for local government in New Jersey?

The primary source of funding for local government in New Jersey is property taxes. Local municipalities rely on property taxes because they provide a stable and predictable revenue stream, which is critical for funding essential services such as public safety, education, infrastructure maintenance, and municipal services. Property taxes are assessed on real estate properties based on their value, which means that as the property market fluctuates, the tax revenue can also vary, but it remains a fundamental component of local budgets nonetheless.

Income taxes and sales taxes are generally collected at the state level rather than locally, meaning they are not as directly influential in providing the financial means for specific local government functions. Business taxes may contribute to municipal funding but do not provide the same level of consistent revenue as property taxes do. Thus, for local government operations in New Jersey, property tax stands as the cornerstone of financial support.