From the Asbury Park Press:
New Jersey property taxpayers are being promised what Assembly Speaker Joseph J. Roberts Jr. this week called a “double dose of property tax relief and reform.” Don’t expect that double dose to be the cure for what ails you and your bank account.
Gov. Corzine should tell Roberts, D-Camden, and Senate President Richard J. Codey, D-Essex, to get their colleagues back into the Statehouse and try again. The relief and reform efforts fall far short of what New Jersey’s taxpayers need and expect.
A plan that passed the Assembly Monday calls for 20 percent property tax credits for homeowners who earn less than $100,000 per year — 15 percent and 10 percent for higher-income households — and a 4 percent cap on annual tax hikes that’s riddled with exemptions.
Problem is, when you offset the tax credit with the increase in other taxes and fees and the loss of the Homestead Rebate, you will see only a fraction of the 20 percent in relief. And the 4 percent cap is actually higher than the caps now in effect for municipalities (2.5 percent) and school districts (3.5 percent or the rate of inflation, whichever is higher). The exemptions on those caps have made them largely meaningless. Tax bills have continued to rise about 7 percent a year.
Here’s the math on the proposed “tax relief”: A family paying the state average of about $6,000 in property taxes would get a 20 percent credit of $1,200. Last year, the average homeowner received a $285 rebate that it won’t get this year. Subtracting that reduces the tax relief to $915 — about 15 percent of the tax bill. Gov. Corzine said even with a 4 percent cap, homeowners could probably expect a 6 percent to 7 percent local tax increase next year. A 6.5 percent rise would add $390 to the tax bill, further reducing the “relief” to $525, or under 9 percent.
From that figure, subtract the 16 percent increase in the sales tax, which went into effect in October, that will likely fund most of this year’s property tax credit. The state estimates it will cost the average family an additional $275 per year. That brings the so-called relief for the average taxpayer to $250 — whittled down to a mere 4.1 percent.
At this point it’s to late to backtrack on the rebate issue thid is is done deal with each side taking swipes at each other .The only way to put a end to this is if Corzine won’t sign ,or a judge is smart enough to say it’s unconstitonal,or hell freezes over .Me I’ll place my money on hell freezing over .Corzine is in the union’s pocket ,proof of this is he’s trying to get Rutgers to unionize ,and do away with merit pay.He so as showed up at a rally the show his support .Taxpayers will pay for his anticks ,Unions are a BIG block vote he knows this so do all are crooked pols
Well the intent is for Dems to be able to brag about it during next elections.
Who cares for real relief for Middle Class?
At least people are realizing that the 20% property tax relief is just smoke and mirrors. Lawmakers refuse to make tough decisions about cutting spending. Unless spending is reduced, and property tax cut will either be unsustainable or simply shifted to other taxes.
In most states, a regime like this would be voted out of office. In NJ, however, Corzine has bought off the large and growing public sector unions by vowing to protect their generous salary and benefit packages. Nothing will change in NJ.
the numbers are generous ,most people taxes will go up not down..Asbury Park Press should run front page article on 20%TAX cut is a FRAUD ..that’ll catch peoples attention.
Great article. This should be sent to every NJ resident. Then again…is anybody really surprised at this?
20%TAX cut is a FRAUD – mrb is right!