May 14, 2012
Action Needed Now
RE: Property Tax Funding Restoration Committee Action Scheduled
Last week, we told you that on May 17, the Senate Budget and Appropriations Committee would likely vote on S-1900, a bill to phase-in the restoration of $449 million, for municipal property tax relief.
The bill that the Committee will consider is a bit different from the draft we previously reviewed.
1. The distribution language will ensure that each municipality will be restored to the 2007 (SFY 2008) ETR/CMPTRA level, over 5 years. (The original draft only dealt with statewide appropriation, not individual municipal losses.)
2. The poison pill (newly applied to SFY 2012 CMPTRA funding) will protect that level of funding for each municipality, while continuing to require aggregate ETR inflation adjustments. (The original draft would have protected the aggregate level of funding.)
3. Due to State budget constraints, the five-year restoration is down to $331 million. 20% of that equals $66.2 million per year. (Down from $449 million, phased in five annual $87.8 million increments.)
Companion legislation (A-2921) has been introduced in the Assembly by Assemblyman Troy Singleton.
This bill needs to pass both Houses by the end of June, so that it can affect this year’s State Budget. Quick action is, therefore, essential. We have posted a REVISED SAMPLE RESOLUTION IN SUPPORT OF PHASED-IN RESTORATION at our internet Energy Receipts Restoration Resource Center (http://www.njslom.org/energy-tax-resource-center.html).
The links to the Sample Resolution are: PDF - http://www.njslom.org/resolutions/DRAFT-RESOLUTION-SUPPORT-PHASED-IN-RESTORATION.pdf
WORD - http://www.njslom.org/resolutions/DRAFT-RESOLUTION-SUPPORT-PHASED-IN-RESTORATION.doc
IF AT ALL POSSIBLE, we urge you to pass a resolution. IF TIME DOES NOT ALLOW FOR THAT, we urge you to send a letter of support to the Committee’s Chair (and the bill’s sponsor) Senator Paul Sarlo at:
Hon. Paul A Sarlo,
Chairman, Senate Budget and Appropriations Committee
496 Columbia Blvd.
Wood-Ridge, NJ 07075
Please also send us a copy of either your resolution or your letter.
We also ask that you contact your own State Senator and Assembly representatives and urge them to co-sponsor this legislation. With this legislation, this can be the year that the State of New Jersey begins to restore to municipalities some of the property tax relief funding promised them by the laws of the State of New Jersey.
Please contact your legislators. Urge them to support increased municipal property tax relief funding. Urge them to co-sponsor S-1900/A-2921.
Visit our Energy Tax Restoration Center at http://www.njslom.org/energy-tax-resource-center.html for more information. If you have any questions, contact Jon Moran at 609-695-3481, ext. 121 or email@example.com.
Very truly yours,
William G. Dressel, Jr.