First in a series examining commercial and residential growth in Washington Township.
By: Mark Moffa
WASHINGTON Ratables.
It’s a word often thrown around by politicians, particularly in election season. It is said they are an asset to the tax base, and that we need more of them.
Discussion about ratables has increased recently as the Washington Township School District moves ahead with a proposal to construct a high school.
But what are ratables and how do they really impact the township?
"A ratable is a piece of real taxable property with improvements," said Karen Baldino, the township’s chief financial officer.
According to Gregory Busa, the township’s tax assessor, there are about 5,100 properties commercial and residential in the Washington. All of them, except for the 150 tax-exempt properties, are technically ratables, meaning the municipality collects taxes from the owners of those properties.
As the political season heats up, a likely issue will be the attraction of ratables to the township. What politicians are referring to are commercial ratables, or more simply, businesses.
Commercial properties tend to provide more revenue for the township than residential land because residential properties often require more services. Families with children in the school system, for example, often cost the township more than they pay in taxes.
For example, the school district has budgeted approximately $6,500 in per pupil costs for the current school year. The owner of a house assessed at $175,000 pays $3,290 in school taxes.
According to Mr. Busa, there are about 3,900 residential units in the township, including town houses, single family houses, and condominiums.
There are only 140 commercial properties, he added, plus 256 pieces of farmland, and 150 tax-exempt properties. Mr. Busa said 563 parcels of land are vacant.
Properties are taxed on their assessed value, which may differ from the true market value. The last assessment in Washington was done in 1993, so Mr. Busa admitted that assessed values in the township are lower than market values. Assessment are normally conducted every 10 years, he said, so Washington’s properties soon will be due for reassessment.
Only a small portion of the taxes property owners pay actually goes to the township, Ms. Baldino said. The overall tax rate this year for Washington residents was $3.21 per $100 of assessed property value. But only 12 percent of that actually will be seen by the township.
The township is responsible for 40 cents of the tax, while the school district’s tax rate is $1.88. The fire district is responsible for 16 cents of the $3.21, and the municipal open space tax is 5 cents. Mercer County’s tax rate is 63 cents, the county library tax accounts for 7 cents, and the county open space tax is 2 cents.
When the breakdown is applied to average houses and other properties in the township, one can see how little tax money the township actually receives.
The average townhouse in the township is assessed at $140,000, Mr. Busa said, and the average single family house is assessed at $250,000. The average condominium is assessed at $80,000.
The taxes on a $140,000 house would be $4,500, although the township would see only $540. A house assessed at $250,000 would pay $8,000 in taxes with $950 of that going to the township.
Russert’s Deli is assessed at $486,000 and pays $15,600 in taxes, with $1,870 going to the township. One of the township’s farm markets is assessed at $300,000 and pays $9,630 in taxes, with $1,100 going to the township.
The Coastal gas station at the corner of Robbinsville-Allentown Road and Route 130 is assessed at $225,600 and pays $7,240 in taxes, with $870 going to the township.
Mr. Busa and Ms. Baldino said all properties are taxed at the same rate. The only factor that accounts for differences in the amount of taxes paid is the assessed property value. And, Mr. Busa said, some types of commercial property, such as office buildings, tend to be worth more money.
A new office building constructed near Town Center by Sharbell Development, for example, consists of 12 suites assessed at $250,000 each. Therefore, that one building is assessed at $3 million an amount that requires $96,300 in property taxes, with $11,500 going to the township.
And of course, Mr. Busa added, the warehouses in the Northeast Industrial Park are a financial windfall for Washington. Seaman’s warehouse alone is assessed at least at $25 million, a figure that would equate to $802,500 in property taxes, with the township seeing $96,300.
The only properties that receive tax breaks, Mr. Busa and Ms. Baldino said, are farms. According to state guidelines, farms are assessed at much less than actual market value to provide a financial incentive for farmers to continue working.
A 13-acre farm, for example, would be assessed at about $2,000, paying $60 in taxes, with only $7.20 going to the township.
When farmers want to stop farming, however, they are required to pay two years in back-taxes on the true market value of their land.
Next, township officials discuss efforts to attract business.

