Morristown Taxes Would Go Up In Proposed 2023 Budget

MORRISTOWN, NJ — Citing rising costs across the nation, Morristown's proposed budget for 2023 will include a tax increase, Mayor Tim Dougherty said on Tuesday night during the budget introduction.

According to town administrator Jillian Barrick, the mayor's proposed budget increase would translate to an additional $105 in annual municipal taxes for someone with a home assessed at the town average of $358,393.

The overall tax increase would end up balancing out at $66 per year due to a decrease in county and school taxes for Morristown residents.

According to Barrick, one of the reasons for the decrease is the continued increase in Morristown property tax values.

"We continue to do all of the right things to keep our finances stable. We’ve reduced salary costs. Our finance department regularly explores our investment strategy to ensure we’re maximizing interest income. But outside forces continue to undermine our efforts at financial balance at every turn," Dougherty said.

This year, salaries went down more than $400,000, Barrick said.

The mayor blamed the tax increase on inflation, as well as other necessary rising costs and a "disproportionate number" of tax-exempt properties within town.

"Did you know that over $350 million in property in town is not taxable? That equates to almost $10 million in taxes that aren’t collected, of which the town would receive $3.7 million. That money would have a sizable impact on our budget and your taxes. But we will never see that revenue," Dougherty said.

Morristown, as the county seat, is home to many state and county offices, as well as non-profit organizations that benefit from municipal services but do not contribute property tax revenue, according to Dougherty.

As a result, properties are routinely removed from tax rolls without the ability of the town to intervene, leaving fewer property owners to bear the burden of supporting local services.

"Don’t get me wrong, I am eternally grateful to the many local organizations that support our residents, especially those in need. However, that comes at a cost that you, as property owners, must carry," Dougherty said.

Dougherty also mentioned some promising future developments. The town anticipates collecting more than $2.0 million in PILOT payments in 2023, saving the average taxpayer nearly $4,000 over the next ten years.

"The development that has happened here in the last dozen years is a remarkable change over the stagnation of the past and it has resulted in investment in every corner of our town," Dougherty said.

M-Station's first phase demonstrated that places like Morristown are exactly what the modern worker is looking for, Dougherty said.

As a result of this success, two more companies have decided to relocate their headquarters to Morristown. Valley National's headquarters on Speedwell Avenue are nearly finished. According to officials, this fully taxable project will bring hundreds of jobs to a previously undervalued area.

While discussing upcoming developments in town, Dougherty hinted that Morristown will be launching a housing rehab grant program for low-income homeowners in need of assistance with home improvement projects.

This program will be geared toward seniors who find it difficult to maintain their properties on a fixed income. Morristown's administrative agent, CGP&H, will provide more information on this program at the next town council meeting.

"Now that the public health emergency has passed and we have a glimpse of what our new normal looks like, it’s clear to me that our new normal is going to be pretty great... I know that our future is bright," Dougherty said.

The council voted unanimously to introduce the municipal budget, which will be revisited for public comment and a final vote on June 13.