Jersey City residents are bracing for what could be the largest property tax increase in the city’s recent history—and Mayor James Solomon says there’s no easy way around it.
Solomon is proposing a 20% property tax increase to help close a $255 million budget deficit—a gap he says represents roughly 28% of the city’s total annual operating budget and was left behind by the previous administration. We first reported on the brewing fiscal crisis earlier this year.
“When I took office in January, my team uncovered a $255 million deficit—roughly 28% of the entire city budget left behind by the prior administration,” Solomon said. “The last mayor paid for our bills on the city’s credit card and we are stuck with the bill.”
The Plan
The administration’s strategy rests on three pillars: cutting costs, generating new non-tax revenue, and securing state aid.
Since taking office, Solomon says his administration has already closed roughly $55 million of the gap through administrative action. Key moves include switching the city’s health benefits administrator from Horizon to Aetna—saving approximately $25.8 million—canceling the Centre Pompidou museum project, which saved $40 million about to be spent, and implementing tighter staffing controls to reduce unnecessary overtime.
To generate new revenue without raising taxes further, the city is modernizing code enforcement, updating permit fees, launching camera-assisted parking enforcement, and auditing existing tax incentive deals with developers.
The administration is also seeking approximately $120 million in state financial assistance—a combination of aid and low- or zero-interest loans—modeled on precedents established for Atlantic City and Newark. Jersey City generates an estimated $1.3 billion annually in state income, sales, and business taxes, making the case that a state investment is in Trenton’s interest.
The Delay
The proposal has drawn immediate public opposition. Solomon pulled the measure from the City Council agenda on June 24—hours before a scheduled vote—after mounting resident backlash. A new meeting has been set for July 1.
“We postponed the vote today based on what I heard from residents,” Solomon told reporters. “They said, ‘You’re moving a little too fast, too quick.'”
City Council President Denise Ridley welcomed the delay. “I’ve heard from residents across every ward that this increase, as proposed, moves too fast for too many household budgets,” she said, according to Gothamist.
Former Mayor and failed Gubernatorial candidate Steven Fulop, whom Solomon has blamed for the deficit, rejected the characterization. “Had I chosen to run for re-election, we would have introduced another budget with no tax increase for Jersey City residents as we did nearly every year,” Fulop said in a statement to NBC New York. “This is James playing politics.”
What Comes Next
Solomon has warned residents that even with the delay, some form of tax increase and service cuts are inevitable. “We will feel these cuts,” he said. “The size and scope of the City’s fiscal emergency means we are facing very real tradeoffs.”
The mayor has pledged the hike will not exceed 20% and could come in lower depending on how much state aid Jersey City receives. State leaders are currently finalizing New Jersey’s budget ahead of the July 1 deadline—and how much relief Jersey City gets from Trenton will go a long way in determining what residents ultimately pay.
Solomon has scheduled four town halls around the city in the coming weeks and plans to introduce a detailed budget to the City Council on July 15.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.