Administrators in the Cranbury school district have said the school tax rate will decrease by almost eight cents per $100 of assessed valuation for the 2019-20 school year. With that decrease in the tax rate, property owners will pay less in school taxes.
“The Board of Education was able to accomplish this reduction in the tax rate due to fiscal responsibility and an increase in Cranbury’s overall assessed value of property,” Business Administrator Nicole Petrone said.
The overall assessed value in the township increased from $1.6 billion in 2018 to $1.76 billion in 2019, an increase of about $160 million.
During the 2018-19 school year, Cranbury’s school tax rate was $1.069 per $100 of assessed valuation. The owner of a home assessed at $606,000 paid $6,478 in school taxes.
Administrators said that for the 2019-20 school year, the tax rate is expected to decrease to 99 cents per $100 of assessed valuation. The owner of a home that is still assessed at $606,000 will pay $5,999 in school taxes – a decrease of $479.
School taxes are one item on a property owner’s tax bill, which also includes municipal taxes and county taxes.
Petrone said the 2019-20 budget is not using surplus funds. Revenue to support the $20.3 million budget includes a $17.28 million tax levy to be paid by Cranbury’s residential and commercial property owners, $1.16 million in capital reserves and $633,272 in state aid.
Administrators said there would be no reductions to school programs with the decrease in the school tax rate.