RAHWAY – The average Rahway taxpayer will pay $66 extra this year because of a tax appeal settlement with Merck & Co.
In a letter posted on the city website, Mayor Rick Proctor broke down the $212 increase in the average Rahway tax bill for fiscal year 2011. The loss of state aid cost $75, an increase in pension costs added $52 and an increase in general operating expenses added $19.
In total, the average Rahway taxpayer will spend $2,738 this year, up from $2,526 for fiscal year 2010.
In the letter, Proctor said that he would continue to work with the City Council, Board of Education and County Freeholders to “ensure that property taxes remain stable well into the future.”
However, the letter also cautioned that future tax bills may exceed Gov. Chris Christie’s much-publicized two percent increase cap because pension and health insurance increases, as well as debt service, are exempt from the cap.
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