TASK FORCE WILL PAVE THE WAY FOR PROPERTY TAX REFORM

By: William G. Dressel, Jr.
Executive Director,
New Jersey State League of Municipalities

In all that matters in politics and government, communications come between thoughts and actions, between theory and practice, between the ideal and the actual. Often, communications influence the thoughts that, through further communications, result in decisive actions. And sometimes, in order to make change, you’re going to have to produce smaller bills.

So it is in the case of property tax reform.

The problem had long been recognized. Among others, reform proposals written by the New Jersey Tax Policy Committee of 1972, the State and Local Expenditure and Revenue Policy Commission of 1985-1988, and the Governor's Property Tax Commission of 1997 had all been ignored. The paralysis of analysis prevailed.

A recent report issued by the National Conference of State Legislators revealed decreasing property tax burdens all around the Nation … almost. The National average now has property taxes accounting for 29% of state and local revenues. In New Jersey during the State’s last fiscal year, property taxes equaled 42%.

In 2001, the winds of change began to blow. Then-Senator Bill Schluter decided to break the logjam that has prevented good ideas for property tax reform in New Jersey from becoming good laws. His novel and non-partisan approach called for a special Convention. The people of New Jersey would democratically elect the delegates. And, just as the 1966 Convention was limited to one issue (then, legislative reapportionment), so this Convention would be limited to one issue (now, property taxes).

This Session, as in the last, Senator John Adler and Assembly Majority Leader Joe Roberts were the champions for this effort. Their companion bills, A-1786 and S-263, were the vehicles designed to carry the promise of property tax reform to fulfillment.

But there was one problem. The Governor was an opponent of the special convention approach.

Thankfully, the Governor remained willing to listen to our position on this. In the end, he exhibited the strength and the courage to change his mind. And the change was made manifest in a smaller bill. Another step was interposed between the people and their desire for property tax reform. But that step would move us in the right direction.

In July, League Executive Board Member and Chairman of our Property Tax Reform Review Committee, Mayor Gary Passanante of Somerdale, hosted the Governor’s signing of A-97. The bill creates a task force to consider and develop recommendations regarding a constitutional convention designed to change the existing property tax system. The signing of this bill is the most significant step towards true and lasting property tax reform in over thirty years.

On Thursday, August 26, the Governor named his nine appointees. Speaker Sires, Senate President Codey and Assembly Republican Leader DeCroce announced their selections. Now, we await the appointment of the Senate Republican Leader. When that person is named, the Task Force can begin to advance the process that we all hope will, at long last, lead to tax reform.

We salute Governor McGreevey, Speaker Sires, Assemblyman DeCroce and Senate President Codey. The people that they have appointed to this important Task Force bring to the table a rare combination experience, expertise and energy in proven service to the people of our Garden State. And we especially commend Senator John Adler and Assembly Majority Leader Joe Roberts, whose dogged determination have kept alive the hope for true reform of the property tax system. Without their work, we wouldn’t be here today. And the same can be said about League President Jo-Anne Schubert, League Tax Reform Committee Chairman Gary Passanante and Citizens for Property Tax Reform Chairman Cy Thannikary. With them and their colleagues on the Task Force, we can all look forward to steady and sure progress toward the day when the people of New Jersey can take matters into their own hands and make that hope for reform a reality.

The 15 member Property Tax Convention Task Force will issue its report by December 31, 2004. This report will contain not only its recommendations but, if appropriate, a draft legislative proposal to implement the convening of the constitutional convention. The Legislature will then have time to consider and vote for a bill designed to let the people who pay the taxes take the crisis into their own hands.

The consistent communications of the supporters of the convention approach helped to influence the thoughts that led to decisive action. And change was made with a smaller bill.