New Jersey is going to mortgage your house to pay for Coronavirus. From Law360:
A New Jersey bill advancing in the Assembly would allow the state to issue $5 billion in bonds to cover shortfalls caused by the COVID-19 pandemic and would trigger property tax increases if the borrowing can’t be paid back.
The bill, A.B. 4175, would allow the state to issue up to $5 billion in general obligation bonds and authorize an unrestricted amount of short-term borrowing from sources that include the federal government. Sponsored by Assembly Member Eliana Pintor Marin, D-Newark, the bill was passed on Monday by the Assembly Budget Committee on a 9-4 vote. The bill would create the New Jersey COVID-19 Emergency Bond Act, and it is scheduled for a vote in the Assembly on Thursday.
If the state didn’t have the funds to meet interest, premium or other payments on the bonds, a tax on real and personal property would be assessed and levied annually in every municipality to pay the bonds, the bill said.
The tax would be assessed, levied and collected in the same way and at the same time other real and personal property taxes were made, the bill said. The tax would be paid to county treasurers by Dec. 15 annually and sent to the state treasurer by Dec. 20.