Corzine Signs Property Tax Credits and Property Tax Cap Legislation

Governor Jon Corzine on April 3 signed into law the final two pieces of property tax reform legislation. The new laws provide property tax credits, cap property tax increases and make it easier for local governments to share services.

Corzine signed A-1 (Roberts, McKeon)/S-20 (Codey, Kenny), which will provide property tax credits of 20 percent to homeowners with annual household incomes under $100,000; 15 percent for those with incomes between $100,000 and $150,000; and 10 percent for those with incomes between $150,000 and $250,000. The measure also caps the amount by which local governments can increase property taxes at 4 percent per year. However, the cap includes numerous exemptions, such as reductions in State aid, certain debt and interest payments, and health insurance increases above 4 percent.

An important provision of the law will allow local governments to negotiate health insurance premium cost-sharing arrangements with employees enrolled in the State Health Benefits Plan.

The Governor also signed A-4 (Roberts, Wisniewski)/S-10 (Smith), which makes it easier for municipalities and school districts to voluntarily share services. The measure provides for greater local government budget transparency, simpler rules to facilitate local government regionalization and cooperation, and a greater oversight role for county school superintendents to push local school districts towards more cost-cutting, efficiency and cooperation.

New Jersey Business & Industry Association ( www.njbia.com ).   Poster: 4/06/2007