Newark Will Consider Property Tax Hikes for 2027
The city is evaluating tax changes to address a $2.3 million budget gap for the 2027 fiscal year.
Updated on Oct. 13, 2026 in City Hall
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Should local governments prioritize tax relief for owner-occupied homes over commercial properties and rentals?
Newark officials are weighing a proposed 22% property tax increase coupled with a homestead exemption, or an alternative 16% across-the-board hike for the 2027 fiscal year. These measures aim to bridge a $2.3 million city budget deficit.
Why it matters
The proposed tax adjustments follow rising costs and the necessity of funding water treatment plant upgrades to meet new federal PFAS regulations. Additionally, the city is seeking to address the current status of 590 properties that pay zero property taxes.
The proposed homestead exemption would reduce owner-occupied property assessments by $50,000, while a minimum tax option would establish a base levy of $365 per property. These measures contrast with an across-the-board 16% tax hike.
The players
Newark City Council
The local governing body responsible for legislative decisions and the approval of the annual city budget.
Aetna Hose, Hook and Ladder Company
A local fire protection entity that receives $205,000 in annual funding from the city.
The details
The city manager also proposed an 8% water rate increase to fund necessary plant upgrades, while noting that filling 20 vacant storefronts on Main Street could yield $125,000 annually. Meanwhile, automated speed cameras have generated nearly $400,000 in revenue over the last six months to assist with city finances.
Timeline
2023: The city established a fire protection fee for developers.
Monday: The City Manager presented the proposed budget options to the city council.
Nov. 16: The city council is scheduled to discuss the 2027 budget.
2027: The fiscal year for the proposed tax and budget changes.
Political Context
The city's move to hike water rates follows a trend of municipalities struggling to reconcile local budgets with the costly upgrades required by the federal PFAS regulations. Opposition may arise from residents wary of the compounding effects of property tax increases alongside higher utility costs.
Homeowners may see an average tax increase of $93 under the homestead exemption plan, while rental properties face an estimated $165 increase. These adjustments directly impact the monthly cost of living for residents as the city seeks to cover its budget gap.
The takeaway
Residents should review how the proposed homestead exemption might affect their specific property assessment compared to an across-the-board tax hike. Engaging with the upcoming budget discussion allows the public to provide feedback on the balancing of water rates and property taxes.
What happens next
The City Council will hold a discussion regarding the 2027 budget and proposed tax changes on Nov. 16.
Further reading
Learn more about local fiscal policy on the City Hall page.
Source note: This article includes information reported by Newark Post.
Live Poll
Should local governments prioritize tax relief for owner-occupied homes over commercial properties and rentals?
