New Jersey's Economy & Tax System The way in which New Jersey has have chosen to grow is not only costing the state its open spaces; it has also produced stark and inequitable economic consequences that weaken New Jersey's foundations for lasting and genuine prosperity: New Jersey has some of America's poorest cities, despite having the nation's second-highest per capita income. Per capita income in Camden, the state's lowest at $7,824, sits more than 23 times below suburban Saddle River, the highest in the state at $180,887. Average per capita income in the 10 poorest municipalities is $9,889, while the average in the 10 wealthiest is $115,845 - more than 10 times as high. Housing values also demonstrate the results of disinvestment. In the 90s, while newer parts of the state enjoyed unprecedented prosperity, established communities including Piscataway, Maywood, Lawrence Township and Lindenwold saw their housing values decline. There is more than a 15-fold difference in the average housing values of New Jersey's 10 highest communities ($768,071) as compared to the 10 lowest ($50,501). When businesses and families that have the resources flee from the problems of existing communities, they leave behind those who can't flee - and who lack the resources to fix these problems on their own. Worse, these problems are starting to spread. New Jersey's bedrock suburban communities now face the same problems that have dragged down our cities - falling housing values, personal income and employment. There is a rising awareness among government officials and the general public that many traditionally urban problems - population loss, rising taxes, declining incomes and home values - are no longer confined to big cities. New Jerseyans also shoulder an unusually heavy property tax burden. Our per capita property tax is the highest in the nation at nearly $1,500 for every man, woman and child in the state, and double the national average. At the same time, New Jersey relies more heavily than most states on local property taxes to fund key services, from public schools to local roads and sewers. Fully 98 percent of local tax revenues in New Jersey come from property taxes, versus a national average of 75 percent. Such an unbalanced and fragmented tax system is hard enough on the pockets of New Jerseyans, but it's taking a permanent toll on the places where we live. Local municipalities are so dependent upon property taxes to finance local services that they too often chase and compete for new development - even when it doesn't fit the community's character or vision, adds to local traffic woes and eliminates farmland and open land. Read this section to learn about economic problems, why New Jersey suffers from them, and how smart growth can help. New Jersey's Economy & Tax System The Financial Costs of Sprawl and Growth