City Sets Maximum Tax Increase at 3.5 Percent
Wednesday, October 10, 2012 • 7:31am
PATERSON, NJ – The City Council Tuesday night approved an ordinance that would allow Paterson’s tax levy to increase by 3.5 percent for the 2013 fiscal year.
A new state law capped the maximum tax levy increase for municipalities at two-percent. But the law also allowed cities to raise the limit to 3.5 percent by passing an ordinance.
The council approved the ordinance by a 5-1 margin, with Finance Chairman Kenneth Morris casting the only vote against it.
Right now, Paterson’s proposed 2013 budget includes a 9.9 percent tax increase. Officials say they will have to make $8.5 million in budget cuts to comply with the law to get the increase down to 3.5 percent.
The budget was introduced last week and a public hearing has been scheduled for November 8.
