OPINION
Newark sits at the intersection of all major roads and transportation hubs in the metro area, and has long been the economic engine of the region. So, it makes sense that the County of Essex chooses to place its courts, colleges, social service buildings and parks and park offices in Newark.
In all, Essex County owns 55 tax-exempt properties in Newark. These buildings and lots have an assessed value of $717.2 million, making the county one of the largest landowners in the City, but it leaves our 323,000 residents unduly burdened with carrying the cost of housing all of these tax-exempt properties.
If the county paid the same $4.229 tax rate it charges our residents, the county would have to pay the city $30.3 million in property taxes. But under current state law, the counties are guaranteed 100% of property taxes owed to them by municipalities with
no credit for the tax-exempt properties these municipalities house. Therefore, the county enjoys a revenue stream that only flows one way, from residents’ pockets to the county tax offices and in Newark, a full 20 percent of property taxes go to the county.
But this year, a jump in Newark property values caused an enormous increase in tax dollars City residents owe the county. The county tax levy for Newark in 2026 is $103.5 million, a giant $37 million leap up from 2025. Our county tax rate, already the highest in Essex at $3.99, will increase to $4.23, raising the average Newark homeowner’s contribution from $991 to $1,551.
It is imperative that we begin to take a close look at the county tax rate for Newark residents compared to the void of tax revenue it provides to the City. A fair solution would be for the City to receive a credit for tax-exempt properties located in the city to offset the tax burden on our homeowners.
More than 20% of Newark’s land is tax-exempt properties either owned or operated by the county, state, Port Authority and Newark Housing Authority. Add to that tax-exempt church properties, charitable institutions, hospitals and universities and our own municipal land.
The City does draw revenue from some of these properties through lease agreements with the Port Authority at Newark Liberty International Airport and Port Newark, as well as rents from City-owned buildings. Newark serves as the county seat and hosts a large concentration of government facilities, transportation infrastructure, educational institutions, and other public-serving properties. Despite continued private investment and redevelopment, the city’s tax base must support an outsized share of regional assets, resulting in a heavier county tax burden for Newark homeowners.
At a time when Newark, like most American urban centers, struggles with budget challenges, and our residents face higher prices at the grocery store and gas pumps, this inflated county tax levy adds another layer of financial hardship.
The County has an opportunity to demonstrate that fairness works both ways. We are seeking partial relief from this unexpected $37 million levy increase and a broader conversation about how the costs associated with county-owned, tax-exempt properties are distributed. Every municipality benefits from the services, institutions, and infrastructure located in Newark. The responsibility for supporting them should be shared accordingly, not borne disproportionately by Newark homeowners alone.
Ras Baraka is serving his fourth term as mayor of Newark, New Jersey’s largest city
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