Sandy may take a toll on N.J. tax collections, tourism

Hurricane Sandy could have an effect on property taxes and the tourism industry in New Jersey.

 

Damage caused by the storm will have a significant negative impact on property tax collections, especially in coastal communities, according to Rutgers University economist Joe Seneca.

“For municipalities that have a lot of structures damaged, there’s likely to be a short-term property tax loss either through people not being able to pay or that they don’t want to pay on damaged structures and will appeal,” he said.

Seneca says that might mean bigger tax bills for owners of property that escaped storm damage.

Seneca says winter weather and a high demand for labor and supplies could impede the rebuilding of rental properties at the shore.

“You’re rebuilding in New Jersey in winter and whether you can have decent building time then, it’s probably not as likely, certainly, and then you get shortages,” he said Tuesday. “You get demand for labor in a short period of time, a huge demand for materials, drywall, plumbing supplies.”

Seneca said that could result in a great demand for rental units than available properties next summer.

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