Corzine, Legislature Reach Agreement on Property Tax Reform

Governor Jon Corzine, Senate President Richard Codey, and Assembly Speaker Joseph Roberts on January 3 agreed to key elements of property tax reform, according to several published reports. Under the agreement, property tax credits for certain households would be linked to legislation capping annual property tax increases. Legislative leaders also agreed to Governor Corzine’s plan for a State comptroller to investigate local and State government spending. The three leaders also agreed on legislation to deny pensions to public employees convicted of corruption.

The Legislature first proposed a 20 percent direct tax credit after four joint legislative committees studying property tax reform issued their recommendations. Corzine asserted that he would support the credit only if future property tax increases were capped at 4 percent and a State comptroller position created. Under the reported agreement, households with incomes of up to $100,000 per year would receive a direct property tax credit of 20 percent of their property tax bill, while those with household incomes between $100,001 and $150,000 would get 15 percent and those with $150,001 to $250,000, 10 percent. Meanwhile, property tax increases would be capped at 4 percent per year, nearly half the 7 percent per year they have been increasing in recent years.

These leaders hope the agreement clears the way for quick passage of comprehensive property tax reform legislation. So far the Assembly has approved legislation creating a commission to recommend consolidation and shared services for municipalities, creating a pilot program for county administrative school districts, making schools more accountable for their spending, and changing State law to make it easier for local governments to consolidate and share services. The Senate is scheduled to take up the school pilot program and school accountability measures on January 8. For more information, contact Christopher Emigholz at ext. 201.

Visit Property Tax Facts for periodic updates on the progress of property tax reform in New Jersey.

New Jersey Business & Industry Association ( www.njbia.com ).  Published 1/5/2007