Dear Mayor:
The Assembly Budget Committee today released A-5269 and ACR-25. A-5269 would authorize a special citizens’ convention for property tax reform. ACR-25 is the proposed temporary Constitutional Amendment that would allow the people to enact statutory changes, proposed by the convention.
A-5269 is scheduled for final Assembly action next Monday, May 16. PLEASE CONTACT YOUR ASSEMBLY REPRESENTATIVES AND URGE THEM TO VOTE “YES” ON A-5269 – OUR ONLY CHANCE FOR PROGRESS ON PROPERTY TAX REFORM THIS YEAR.
At today’s Committee hearing, Mayors George Spadoro of Edison and Jo-Anne Schubert of South Bound Brook and Township Committee Member David Huemer of Maplewood spoke on behalf of the League of Municipalities in support of the bills, which represent the last best hope for progress on property tax reform in 2005.
Mayor Spadoro noted, “ If the Legislature passes A-5269 and ACR-25, the people will have the opportunity to decide whether or not they want a convention. The people will have the opportunity to elect the delegates of that convention. And the people will have the opportunity to accept or reject the recommendations of those delegates. … But the Legislature must act now to allow the people the opportunity to solve this problem. Our seniors on fixed incomes cannot wait any longer. We all need you to pass this legislation now so the people will have the chance to consider real property tax reform options.”
Mayor Schubert said, “As a Republican Mayor, I am especially proud to support an approach to property tax reform that was, originally, a Republican idea. The first citizens’ convention bill that was introduced was sponsored by Republican State Senator Bill Schluter. Its companion was co-sponsored by Republican then-Assemblyman Leonard Lance. … And interestingly enough, the bills before you are sponsored by Democratic Assembly Leader Joe Roberts and Democratic Assemblywoman Linda Greenstein. This in itself proves that this is not a Democrat or Republican issue. This is a New Jersey issue. And I am proud to see that in some cases we have been able to work in a bi-partisan manner on this issue.”
Maplewood Committee Member Huemer told the Legislators, “Relying on an 18 th century tax in 2005 leads to profound social consequences---it encourages commercial and low density sprawl, as townships look for revenue, it discourages housing for people with children. It is a regressive tax on the most fundamental of assets—poor people and people on fixed incomes pay as much as their next door neighbor with a higher income. … In communities like Maplewood, … (O) ur average home was assessed in 2000 at $266,500. According to the state’s equalized valuation, its true value is about $355,000. It is on a 50 by 100 or 50 by 150 foot lot, with 3 or 4 bedrooms. The total tax bill for that home this year is over $11000. Meanwhile, Maplewood’s median family income is $92,724—which makes their state income tax burden at most $2348. For a typical Maplewood family living in a typical Maplewood house, the property tax bill is far more than 44% of their total tax bill. This same situation occurs in hundreds of towns in New Jersey.”
The bills were released from the Committee on identical 7-3 votes, with one member abstaining. Cosponsor Assemblywoman Linda Greenstein was joined with affirmative votes from Chairman Lou Greenwald and fellow Committee Members Douglas Fisher, Joseph Cryan, Joan Quigley, Mary Previte and Joseph Vas. Members Francis Blee, Alison Littell McHose and Kevin O’Toole voted against both measures. Assemblyman Joe Malone abstained.
NEXT MONDAY’S VOTE IS CRUCIAL. PLEASE CONTACT YOUR ASSEMBLY REPRESENTATIVES ON THIS AS SOON AS POSSIBLE.