Eliminating the property tax “rebate”

From Newsday:

Democratic lawmakers: End most property tax rebates

Three Democratic lawmakers on Monday proposed axing property tax rebates for most homeowners to help control state spending and avoid Gov. Jon S. Corzine’s proposed toll increases.

Sen. Jeff Van Drew and Assemblymen Nelson Albano and Matt Milam said rebates should continue only for senior citizens and disabled homeowners.

The rebates averaged $1,051 last year _ up about $700 from 2006 _ and are meant to help homeowners suffering from America’s highest property taxes, which are twice the national average at $6,330 per homeowner.

The expanded rebates were the centerpiece of Democratic efforts last year to ease the property tax burden. They were sent to households earning less than $250,000 per year. For most, the rebates equated to 20 percent of their property taxes.

The three Democrats, all from South Jersey’s 1st District, said their plan would save $1.3 billion. It comes with Corzine promising about $2.5 billion in budget cuts and proposing higher highway tolls as he looks to revamp troubled state finances.

The rebates cost the state about $2.3 billion last year, some of which was funded by the 1 percent sales tax increase from 2006. Still, voters in November rejected permanently dedicating half of that increase to property tax relief.

“The state is increasing taxes to provide relief,” Van Drew said. “It doesn’t make any sense. The people of this state spoke loud and clear this past November when they voted no on dedicating the remaining half cent to property tax relief.”

The three Democrats also want to ask voters this fall whether to permanently eliminate the rebates to save money.

“If we are wrong, let the voters tell us,” Albano said.

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6 Responses to Eliminating the property tax “rebate”

  1. Homer says:

    I say raise the Tolls. All these commuters on 80, 78 parkway etc are the reason the roads are so cluttered. I say quadruple tolls. I think we need to deter so many commuters from moving here. I dont have a problem with commuter, just the fact there are so many of them. We need to cut back on transportation to the city. Cut down busses, cut back on trains etc. The government needs to stop worrying about commuter and focus on Jersians, we come first…Commuters come 2nd.

  2. RentininNJ says:

    When the rebate plan was first announced, I think most people here saw it for what it was; a clearly unsustainable doling out of bread & circuses in an election year meant to sedate increasingly agitated voters & keep incumbents in office. It worked.

  3. lisoosh says:

    Renting – Yes. And yet it didn’t stop the majority of the state from willingly allowing their back pockets to be picked all the while holding out their sweaty little paws for rebate paydays.

  4. I left South Jersey some 20 years ago so they were giving tax rebates. Hmmmm….

    I agree that if the people vote on it let that stand as the peoples choice. Glad to see that they didn’t discount the seniors and disabled. Jersey always has stood behind the elderly and disabled that is something I miss.

    I’ll be watching to see how this turns out.

  5. Kristin says:

    I am a single young adult who really wants to own my own home, condo, uh, shoebox, whatever, after living in apartments all my life, I don’t want to pay rent. I want to buy in Bloomfield or surrounding towns. Do you think the market will go up or down in the spring?

  6. Joeycasz says:

    Bloomfield, Nutley, Belleville is very expensive on taxes and for very little in return IMHO. The school systems are so so and the areas other than Brookdale aren’t that nice either. As far as the market going up or down, the general consensus I get around here is that it will either stay the same or go down.

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