Florida Governor Ron DeSantis recently stirred national headlines by proposing a plan to eliminate property taxes for homeowners. The idea is to stop ongoing, annual taxation and rethink how primary residences are taxed altogether. It’s bold, controversial, and for many states, probably unrealistic. But it started a serious conversation.
In New Jersey, we should be asking the same thing: Could we ever pull that off here?
New Jersey has the highest property taxes in the country. The average bill tops $9,500, and in many towns it exceeds $15,000. Homeowners are not just burdened. They are being squeezed out of their communities. Year after year, they pay more for the right to live in homes they already own. For retirees, working-class families, and first-time buyers, the current system makes long-term ownership feel more like a financial trap than an achievement.
What if there was another way?
Let’s explore a tax model that offers long-term relief without gutting essential services:
✅ A one-time property tax at the time of purchase for primary residences
💼 Annual taxation continues for investment properties, vacation homes, and commercial real estate
This is not about eliminating taxes. It is about changing how and when homeowners pay them.
How the Plan Would Work ⚙️
🏡 One-Time Tax for Owner-Occupants
Under this model, New Jersey residents buying a primary home would pay a single property tax charge at closing. The rate could be based on the purchase price and adjusted for local needs. This approach would provide:
- Predictability
- No annual reassessments
- No rising tax bills each year
Homeowners could finally enjoy stability in their monthly budgets.
🏢 Annual Tax for Investors, Second Homes, and Businesses
Recurring taxes would stay in place for:
- 🏘 Investment and rental properties
- 🌴 Vacation homes and second residences
- 🏨 Short-term rentals like Airbnb
- 🏭 Commercial and industrial real estate
These properties are often income-generating or speculative assets. It makes sense for them to continue funding local services through annual taxes.
Why Florida Can Entertain This — and New Jersey Can’t 🌴❌
Many people wonder why Florida, with no income tax and now a proposal to eliminate property taxes, seems to manage just fine. Meanwhile, New Jersey relies on both income and property taxes and still struggles.
🎢 Florida Has Tourism and Transplants
Florida pulls in billions each year from:
- Disney World, cruise ports, beach resorts
- Hotel and amusement taxes
- Out-of-state retirees and part-time residents who spend heavily
All of that boosts sales tax revenue and fuels the economy without depending on residents.
🧾 Florida Still Has Property Taxes — Just Lower and Predictable
Florida hasn’t eliminated property taxes. They are still essential. The difference is:
- Strong homestead exemptions
- A 3% cap on annual increases for primary homes
- More stability for homeowners
That predictability keeps people in their homes longer and attracts new residents.
Why New Jersey Is Different ⚠️
🧱 NJ Has Higher Baseline Costs
New Jersey carries:
- Massive pension obligations
- Strong public sector unions
- A high-cost education system, funded mostly by local taxes
And unlike Florida, NJ doesn’t have cruise ships or national theme parks pumping money into its economy year-round.
🏛 NJ Has Too Many Layers of Government
Here’s what NJ residents are paying for:
- 🏘 566 municipalities, each with their own police, council, and DPW
- 🏫 600+ school districts, some serving just one town
- 🧾 Dozens of special-purpose taxing authorities like sewer and fire districts
This kind of duplication means higher operating costs and bigger tax bills. We are still running a 19th-century government structure with 21st-century expenses.
Could a One-Time Tax Actually Work? 🧮✅
With thoughtful planning, it absolutely could. Here’s how it benefits different groups:
👨👩👧👦 Homeowners
- Predictable cost of ownership
- Easier mortgage approvals
- No annual tax hike surprises
🏙 Municipalities
- Stable upfront revenue at point of sale
- Continued income from investor and business properties
- Reduced need for costly reassessments
📊 Political Challenges
A major change like this would likely require a constitutional amendment and widespread voter support. Municipal governments and school boards may resist, since annual tax hikes give them flexibility. But public pressure is growing, and homeowners are ready for a different approach.
A Fairer System for the People Who Live Here 🏠💰
This proposal is not about shrinking budgets. It is about rebalancing who pays, how much they pay, and when they pay it.
Right now:
- A senior on a fixed income can pay $12,000 per year in property taxes
- An investor with five rental homes may write off taxes as a business expense
That is not fair. And it is not sustainable.
A one-time tax model could offer relief to people who actually live in their homes, while still keeping revenue flowing from those who treat real estate as an income stream.
Final Thoughts 📣
New Jersey’s property tax system is outdated and unsustainable. Homeowners are overburdened, and local government inefficiency is driving the problem.
A one-time tax on primary residences is not a silver bullet. It would need to be part of a larger effort to modernize how New Jersey funds its schools, manages its public workforce, and delivers local services.
But it is a serious idea that deserves discussion.
If Florida can propose eliminating property taxes altogether, New Jersey can at least begin the conversation about restructuring them more fairly.
The question is not whether we can afford to reform property taxes. The question is whether we can afford not to.
🗣 Want to Weigh In?
Would you support a one-time property tax model?
What would be a fair rate?
Should non-owner-occupied properties carry more of the burden?
Leave a comment, share your story, or reach out directly. Let’s keep this conversation going.