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William G. Dressel Jr, Executive Director - Michael J. Darcey, CAE, Asst Executive Director

March 11, 2005

Re: Property Tax Convention Progresses (A-5269 & ACR-25)

Dear Mayor:

Two bills that must pass (one of them, with super-majorities in both Houses), before the Legislature leaves Trenton for its Summer Recess on or about June 30, have cleared their first hurdle. A-5269, which would authorize a special convention for property tax reform, and ACR-25, which would allow the convention to propose statutory changes, were amended and released yesterday by the Assembly State Government Committee and now move on to the Appropriations Committee.

A-5269 needs to pass with simple majorities in both Houses (41 'yes' votes in the Assembly and 21 in the Senate) and be signed by Governor Codey before the recess, in order for the people to be able to vote this November on whether or not they want a special convention for property tax reform. ACR-25 is a proposed temporary Constitutional Amendment that would allow the people to enact statutory changes, proposed by the convention, for property tax reform. Currently, only the Legislature can act on laws. It requires a three-fifths vote in each House (48 votes in the Assembly and 24 in the Senate) to appear on this November's ballot for citizen approval.

Among the amendments adopted by the Committee yesterday were two of special importance to us. The first would preclude the Convention from recommending a statewide equalized property tax for education. As Mayor Jo-Anne Schubert of South Bound Brook said in her testimony, presented on the League's behalf, "The solution to our over-dependence on the property tax is not another property tax, … While some might argue that a statewide equalization would spread the property tax burden more fairly among taxing districts; it would not necessarily be fairer to individual taxpayers. And that is the standard by which any reform needs to be measured."

We want to thank Senator Len Connors and Assemblymen Chris Connors and Brian Rumpf for their continuing efforts to keep such a statewide equalization off the convention's list of potential options. And we want to especially thank Assemblyman Jeff VanDrew, who authored the amendment and who appeared before the Committee to argue for its acceptance.

The second key amendment, from our perspective, would allow the convention to include, in its recommendations, provisions to ensure that the reforms will provide lasting benefits to the property taxpayers of New Jersey. Senate Minority Leader Leonard Lance has been an articulate advocate of such a provision saying, "For the convention to succeed in achieving the goal of proposing significant and enduring property tax reform the delegates must be
entrusted to examine - within prescribed limits - those matters that propel the continued escalation of the property tax burden."

Mayor Gary Passanante of Somerdale also spoke for the League. Mayor Passanante noted, "While we salute the Governor on his effort to address the deficit crisis, we sadly note that the proposed "cure" will only exacerbate New Jersey's chronic property tax crisis. … The by-product will be an increase in New Jersey's already unprecedented over-reliance on regressive property taxes to fund essential public programs and services. … With property tax pressures almost certain to intensify this year, the people of New Jersey must be given a hope for future relief. They expect the Senate and General Assembly, as well as Governor Codey, to act on a property tax convention bill, in time to get the question on this November's ballot. They need nothing more than that. They deserve nothing less."

If you want the latest information on the convention initiative visit our website at www.njslom.com. If you want copies of the bill, call Ms. Suzanne DeLany at 609-695-3481, ext. 14. And if you have any questions call Jon Moran at 609-695-3481, ext. 21.

Very truly yours,


William G. Dressel, Jr.  
Executive Director

News Links

Assembly panel advances tax-cutting convention Star Ledger 3/11/05

 

 

 

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