From the AP via Newsday:
Senate stalemate breaks, bringing tax cut closer to reality
The German statesman Otto von Bismarck once famously observed, “People who enjoy eating sausage and obeying the law should not watch either being made.”
Neither sausage nor law was being made Monday night or early Tuesday afternoon in the historic New Jersey Statehouse as New Jersey senators stalled in their effort to approve a plan to cut the nation’s highest property taxes by 20 percent for most homeowners.
…
The bill had passed the Assembly on Jan. 29 by a 71-8 margin, and Gov. Jon S. Corzine was expected to sign it, so the pressure was on _ especially after three Democrats voted against it, including two who suddenly publicly deemed it illegal and inadequate.
…
Though Republican leaders insisted no one from their party would support the bill, Codey said he sensed GOP senators were itching to vote for it, but were hesitant to go against party leaders. It was a test of wills he guessed would break his way sometime before Wednesday.“I was going to get it done,” Codey said.
First Republican Sen. Bob Martin voted for the bill, giving it 18 votes. Republican Sen. Robert Singer followed. Republican Sen. Martha Bark cast her vote in favor. That gave the bill 20 votes. Within seconds, four more Republicans joined them and the standoff was over. The bill ultimately passed 28-10, with 10 Republicans supporting it.
Meanwhile, Democratic foes were left alone. Sen. Wayne Bryant, D-Camden, sat in his chair waiting to discuss what was needed for his support.
“I’m open to discussion,” he said.
None came.
The relief plan calls for a 20 percent property tax cut to households earning up to $100,000, a 15 percent cut for those earning up to $150,000 and a 10 percent cut to those earning up to $250,000. About 1.9 million of the state’s 2 million households would get help.
Renters would see relief doubled to $150, and the plan would limit annual property tax increases to 4 percent, with schools and local governments given exemptions for certain expenses. They can also ask the state and voters to exceed the cap.
…
Corzine is expected to soon sign the bills, though he said he wants more done, such as banning people from holding more than one elected office and restricting campaign contributions from all government contractors. He also needs to devise a new school funding plan and negotiate new contracts with state workers.“We have more work to do,” he said.
After the vote, Senate Minority Leader Leonard Lance, R-Hunterdon, maintained the plan cannot be funded beyond this year, when Democrats will try to hold their legislative majority.
“I’m deeply concerned that it will be a one-year plan,” Lance said. “Each senator voted his or her conscience. It is my view that the program is not sustainable.”
I’m supposed to get excited about a $50-60/month tax cut? Pffft. Hardly makes a dent in my mortgage+tax bill.
During the latest quarter, borrowers refinanced into higher rate loans to access home equity — pushing the share of refinances higher. But the dollar volume of cashout transactions still managed a decline.
http://www.mortgagedaily.com/
Ouch..
MLS# 2066175 – Clifton, NJ
Original List Price:$519,900
List Price: $499,900
Sold: $488,500
DOM: 42
Closed: 7/08/2005
Now for sale…
MLS# 2309428
Original List Price:$469,900
List Price: $449,900
DOM: 176
Mmm…sausage. Doh!
My savings will be $100 per month for each of my properties, I’m glad! I’m in Jersey City and my tax bills are quite a bit lower than some other cities in the state. It will help me out a lot. I just hope it’s sustainable.
checking in from Denver
looks like there is plenty to discuss
it was 62 degrees a couple of hours ago :)
I’ll be looking for the skinny on the tax legislation
I miss Hunter :(
RE#5
Randy I am sure this savings will only be allowed on your principle residence.
I also have multiple units, and if history repeats itself, that is how it will be done.
You have to be a politician to get special favors like that.
JIM
i’ll take the relief because i know it’ll just delay the inevitable increase down the road. if they give you something back they’ll just take it from somewhere else making it a wash. what is the lost money just going to magically appear?
I was just looking at some places in Mendham on the GSMLS, but it appears there are more serious sellers cutting their prices below the homes assessed value. I didn’t see this last year that much. Obviously still sellers who are well above the assessed values, but those houses will probably sit in inventory for awhile. Selling pressure coming from the outside towns inward towards Manhattan.
Were renters mentioned in the bill? Will the landlord or tenant get a credit?
Why There’s No Such Thing As a Housing Bubble
I believe the renter credit will be doubled from $75 to $150.
jb
http://www.centredaily.com/mld/centredaily/business/16639621.htm?source=rss&channel=centredaily_business
“They went to court, saying they were deceived. A federal judge sided with them and is allowing a class-action suit involving up to 7,000 borrowers against Chevy Chase…
The case worries the lending industry because of the potential for hefty losses if other borrowers are allowed to rescind mortgages they claim were misleading.”
“Senate Banking Committee Scheduled to Hold Hearing on Mortgage Lender Practices..
Wednesday’s hearing is the first of the year and will provide color on the opening positions of key Democratic and Republican members…”
http://biz.yahoo.com/ap/070207/mortgage_ahead_of_the_bell.html?.v=1
#11 Syncmaster: According to the article, Opinions are rarely from inside the real estate industry? oh boy that is rich.
I guess David Lereah is not enough.