From Newsday:
Florida property tax deferrals catch Jersey’s attention
Lou Albright has had enough.
Retired after working for Verizon for 35 years, the Gloucester Township man has seen property taxes on his two-bedroom home increase 12 percent in recent years, to $7,400 annually.
Albright, 64, wonders how senior citizens in other states can stay in their homes. Faced with the nation’s highest property taxes, many New Jerseyans are struggling to afford retirement, he said.
“New Jersey has become a work-only state,” Albright said.
Albright is intrigued by an idea that will soon receive attention in New Jersey _ a Florida program that allows senior citizen homeowners to defer annual property taxes.
…
The Florida law was recently amended. As of Jan. 1, it will allow homeowners at least 65 who meet income qualifications to defer property taxes until the home is sold or ownership is transferred, said Kathy Henley, a Florida state property tax administrator. Under the law, deferred taxes can accrue as much as 7 percent interest.Robert F. Williams, a Rutgers University-Camden constitutional professor, told New Jersey lawmakers a law like Florida’s might allow them to bring property tax reform to the Garden State without complicated constitutional revisions that need voter approval.
“You might be able to solve part of the problem without any huge structural changes,” Williams said.
But not everyone is convinced it’s right for New Jersey.
Albright likes the idea, but is worried it could make selling a home more difficult in a sluggish housing market.
Cy Thannikary, chairman of a citizens property tax reform group and an Upper Freehold resident, said deferring property taxes wouldn’t solve the state’s heavy reliance on property taxes to pay for local government and schools.
“It simply postpones the misery of ever-increasing property taxes to a future date or to the next generation,” Thannikary said.
And what if the house is worth less than the taxes owed when the retiree dies? The kids get stuck with the bill, or the taxpayers?
How about some serious reforms? Follow other states with a better model.
Also, where does the money come from to cover the spending that needs to happen today? I guess the state going to have to just keep borrowing.
Sounds like a band aid to me. They’re just prolonging the agony. In the meantime, who sucks it up and pays for this??? I have a revolutionary idea,how about serious structural reform now??? No we would rather continue robbing Peter to pay Paul.
BC Bob
Sounds about right BC Bob. What I got out of reading that was zero tax decreases. Just postponement. What type of reform is that? This reminds me of the very first quotes I memorized:
Change is easy. Improvement is difficult.
Dr. Porsche
Reform definition: make changes for improvement in order to remove abuse and injustices
Grim – OT…have you read the “Toxic Mortgage” article in the new issue of Business Week (also available online, no subscription needed). Wow. I don’t suppose there was any of this leveraged financing taking place in Norther NJ, right?
Anon 2:57.
Grim posted that about 5 posts back.
Is this the best that we can do? Pass the buck to their kids? I’m not surprised by this piece of lunacy. I’d be totally ashamed.
Anon 3:05 – Thanks, I missed it…but I couldn’t miss it in the mail today. This thing is about to implode, 2007 will be a busy year for Mr. Grim.
the next generation has quite a load to carry. faced with no pensions or social security we have to save for our own retirement while paying for the boomers and now we’ll take care of your property taxes too. why dont we sweeten the pot and pay for cars and what the hell auto insurance for every senior in the state.
like anon said how about some serious reform. unlike corzine and his belt tightening where he jacked up the budget 5%
how about cutting some jobs!
Hey Anon 06:08
Nightmare Mortgages by Mara Der Hovanesian
If you want to write a book why not post it on B&N site.
Getting Real About the Real Estate Bubble
Fortune on CNNMoney.com
By Shawn Tully
ok, now me and the mister are disagreeing about whether or not the state or federal government would come after the kids for taxes. If I die and owe $100,000 in taxes and my estate is worth $50,000, would my kids have to pay it?
Seniors who want to do this already have an option in the reverse mortgage. I see no need to involve the government–it diverts attention from the real problem, which is our overreliance on property tax. It also doesn’t address the needs of other homeowners who have fixed or stagnant incomes and are often more affected than today’s relatively well-off seniors.