We have all seen the headlines about rising prices and record-setting inflation. Hopewell Township is not immune to the challenges brought by rising fuel prices, medical expenses, and the costs of materials.
Despite these financial headwinds, homeowners in Hopewell Township will see a 2% decline in the total property tax rate in 2022, the first decline since 2007. The dollar amount of the decrease will depend on a home’s assessed value, but for reference, for a home valued at $500,000, total property taxes will go down by $330.
The tax rate is impacted by several factors. The tax levy — i.e., the amount of money that needs to be raised by property taxes to support the budget — is set by each governing body. It is important, and it is often the sole focus of attention when it comes to property taxes.
However, also critical is the number of commercial taxpayers in the township — often referred to as ratables.
The responsibility of attracting and retaining these ratables falls to the municipal governing body. In Hopewell Township, that is the Hopewell Township Committee. Because of rising costs for things like healthcare, materials, and fuel, and the need to give fair raises to employees, it is nearly impossible to implement a tax levy decrease, especially in very responsible, lean budgets.
In fact, this year, the total tax levy went up for the school district, and marginally for the municipality. However, when there are more commercial taxpayers to help absorb an increase, less of it will fall to residential taxpayers.
When commercial entities pay an increasing portion of the total levy, even if the levy increases, the tax rate will go down, and residents pay less in taxes. That is what happened in Hopewell Township in 2022.
The Hopewell Township Committee has been working hard over the last several years to bring more commercial ratables to the Township and to improve the health and value of existing commercial and residential properties. You may have read about the revitalization of the former Bristol Myers-Squibb site, now known as the Princeton West Innovation Campus.
Attracting these new tenants and pharmaceutical companies to Hopewell Township is a key component of our plan to help reduce property taxes in Hopewell Township. It takes careful planning and negotiation to attract new businesses while also protecting our environment and open space. The Township Committee and dedicated township professional staff have been working for years to make this a reality for taxpayers.
While this is great news for 2022, our work certainly is not over. We will continue to look for creative ways to reduce property taxes for Hopewell Township residents, while still meeting the needs of our residents and treating our employees fairly in the face of rising costs.
This long-range planning includes continuing to reduce debt, finding new sources of municipal revenue like PILOT agreements and cannabis receipts, and continuing to attract new commercial ratables to the township to reduce our dependence on residential property taxes.
We are on a positive, responsible fiscal path in Hopewell Township, and we will work hard to stay on this path and keep property taxes moving in this positive direction.
Courtney Peters-Manning is the mayor of Hopewell Township, which provided this content.
Courtney Peters-Manning,
