The open space tax that Monmouth County property owners pay in order to acquire and preserve open space properties will increase in 2018.
After Monmouth County voters approved a public question for an increase that will produce more tax revenue that will be used to acquire and preserve open space parcels, the Monmouth County Board of Freeholders passed a resolution on Dec. 13 modifying the annual collection rate.
On Nov. 7, voters in the county approved a referendum that proposed an increase in the open space tax rate from 1.5 cents to 2.75 cents per $100 of equalized valuation. According to results posted by the county clerk, the vote was 57.5 percent in favor to 42.5 percent opposed.
The freeholders have now enacted that change in the county’s open space tax rate.
The open space trust fund is formally known as the Monmouth County Open Space, Recreation, Floodplain Protection and Farmland and Historic Preservation Trust Fund.
Since 2006, the trust fund has been supported by a tax levy authorized by voter approval at a rate of 1.5 cents per $100 of equalized valuation, according to the resolution.
The open space tax rate, when applied to the assessed value of a specific property, determines the amount a property owner pays into the open space trust fund on an annual basis.
County officials use the tax revenue to pursue a policy of preserving public open space, providing public recreation opportunities, conserving natural resources and protecting water quality, according to the freeholders.
In 2017, the open space tax rate (1.5 cents per $100 of equalized valuation) was expected to produce $17.7 million in revenue that county officials use to acquire and preserve land in 53 municipalities, according to Craig R. Marshall, the county’s chief financial officer and county treasurer.
The freeholders said additional revenue was needed to continue to pursue the policy of land acquisition and preservation. They resolved to allow voters to determine the outcome of the proposed increase in the open space tax rate.
Marshall has said that with a tax rate of 2.75 cents per $100 in place, $33 million in revenue will be generated annually for those purposes.
On an assessment of $200,000, a property owner was paying $30 per year into the county’s open space trust fund. With a tax rate of 2.75 cents, that will increase to $55 per year.
On an assessment of $400,000, a property owner was paying $60 per year into the county’s open space trust fund. With a tax rate of 2.75 cents, that will increase to $110 per year.
On an assessment of $600,000, a property owner was paying $90 per year into the county’s open space trust fund. With a tax rate of 2.75 cents, that will increase to $165 per year.
On an assessment of $800,000, a property owner was paying $120 per year into the county’s open space trust fund. With a tax rate to 2.75 cents, that will increase to $220 per year.
