How does borrowing and debt effect your property taxes?

Gloucester Township, Camden County, NJ

الوليد When a New Jersey municipality wants to raise your property taxes, the state holds them to a 2% tax increase CAP. The municipality must stay within that 2% if they want to raise property tax on it's residents EXCEPT.......Debt service. The tax increase can go well over 2% if the municipality has debt. Again, the debt service is not included in the state 2% CAP.
صورك الشامل

Theoretically, the more debt your town has, the more they can increase taxes above the CAP. Other reasons are described in a story by the Asbury Park Press, called
"Why the 2% CAP is not always 2%.