Posted: Monday, 22 March 2010 5:15AM
Assemblyman Proposing 25% Prop Tax Cut Across The Board
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Would sign on for a 25% property tax reduction if asked? Would you vote to change the State Constitution to guarantee it? Would you support the amendment even if it came with a catch? You could be asked that question at the ballot this November if a measure sponsored by Assemblyman Reed Gusciora is approved by the legislature.
Gusciora explains that under his legislation, "Everyone's property taxes in the state would be rolled back by 25%. Obviously that would cause a local budgetary shortfall, but we would give the legislature two years to reimburse towns to make up for that shortfall." There's the catch.
"While we're decreasing property taxes, obviously we have to find the make up for that budget shortfall somewhere else whether it's by increasing other taxes or other fees," says Gusciora. He feels if everyone's property taxes were rolled back 25% the state could start with a clean slate and finally show some fiscal responsibility.
This constitutional amendment does not alter in any way the current constitutional requirement that all real property be assessed according to the same standard of value and does not limit the amount by which assessments may increase over time, unlike California's Proposition 13, which limited to 2% the amount by which real property's assessed value could increase in any given year.
Gusciora hopes to couple his measure with Governor Chris Christie's proposal to implement a 2.5% hard cap on spending increases at the county, local and school board levels. He says, "I think that if we meld the two, my bill and his bill, it would be a real win-win for the state and for taxpayers alike."
Christie is pushing for a constitutional amendment that would limit annual tax levy increases at the county, municipal and school board levels to 2.5%. These entities can "bank" anything below the cap. In other words, if a town were to increase spending by just 2% for three consecutive years, that town would have an additional 1.5% wiggle room above the 2.5% cap in the fourth year.
Before he can get the constitutional amendment, Christie is asking the legislature to pass the cap statutorily. He says, "If they don't pass it, they're the ones responsible for a property tax increase, not me." He warns that if the legisalture doesn't pass it, "Then we're going to have a fight. Aren't we?"
"While I am encouraged that the Governor wants to structurally address property taxes, Governor Christie needs to look no further than my proposal, ACR.102, known as 'Proposition NJ,'" says Gusciora. "Unlike what the Governor has outlined which would only limit tax increases, 'Proposition NJ' would actually decrease property taxes."
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