NJLM - LEAGUE STATEMENT CONCERNING PROPERTY TAX REFORM CONVENTION

LEAGUE STATEMENT CONCERNING

PROPERTY TAX REFORM CONVENTION

In addition to the League of Municipalities, the Property Tax Reform Convention Coalition includes the following:

Citizens for Property Tax Reform
League of Women Voters
Citizens for the Public Good
Black Ministers' Council
AARP-New Jersey
New Jersey Policy Perspective
New Jersey Future
New Jersey Chapter, Sierra Club
New Jersey Conservation Foundation
Association of New Jersey Environmental Commissions

CITIZENS' CONVENTION COALITION

POSITION STATEMENT

We believe that a citizens' property tax reform convention is New Jersey's best, if not only, hope for reforms that would:

reduce property taxes as a share of overall public revenue;
eliminate inequities in the current system of property taxation, especially as those inequities may affect low and moderate income residents of this State;
provide relief from the property tax burden on primary residences, whether rented or owned;
ensure greater uniformity in the application of property taxes;
be revenue neutral in their overall impact, meaning that the aggregate amount of all revenues collected by the State and local governments, as accurately as can be estimated and measured, would be the same after the implementation of the recommendations, as they were before such changes;
provide substantial relief; by which we mean that the State's total reliance on property taxes to fund governmental programs and services would be reduced from the current 44%, as a share of total tax revenue, to near the national average of 30%;
provide alternatives which lessen the dependence of school districts and local government on property taxes, or provide alternative means, including possible increases in other taxes, of funding local government services; and
provide means to ensure that reductions in property taxes, or limits on increases thereof, would be sustained over time.

Based on decades of institutional inattention to the problems imposed on citizens by New Jersey's anachronistic over-reliance on regressive property taxes and inaction on structural property tax reforms; and based on the Legislature's sorrowful performance in previous special tax reform sessions; we are doubtful that a special session of the Legislature would produce reforms that meet the above listed standards.

Accordingly, we will continue to support A-1858/S-756 and ACR-107/SCR-68 (or bills modeled on them). These initiatives must pass before early to mid August, in order for the people to be able to vote on them this coming November.

These bills have been in the public arena for over four years where they have been subject to intense review, scrutiny, debate, dissection, and refinement. Further, they incorporate the basic recommendations of the Property Tax Convention Task Force whose distinguished members engaged in extensive deliberations during the final three months of 2004. Based on this record, we are convinced that this legislation provides the best road map to achieve meaningful property tax reform for New Jersey at the earliest possible date.

We will continue to push for speedy passage of the bills, whether or not the Governor and Legislative Leaders plan to hold a special legislative session for property tax reform.

Position regarding a special session

There is nothing that the Legislature could do in a "Special Session," that it couldn't have done two, or ten or twenty years ago IN A REGULAR SESSION. Still, we do not oppose a special legislative session for property tax reform.

However, we reject the argument that the Legislature has to act on EITHER a special session OR a citizens' convention. Passage of a citizens' convention bill does not preclude the possibility of legislative progress on property tax reform, through either the Legislature's regular course of business or through a special session. Passage of a convention bill would merely set a time limit. The Legislature would have until Election Day 2006 to convince THE PEOPLE OF NEW JERSEY that they do not need a special convention to get true property tax reform. If the Legislature enacts reforms that meet the above listed standards, then there will be no need for a special convention. If it does not, then there must be a convention.

So we reject the argument that it will serve the interests of the people of New Jersey to delay action on the convention proposal until after they have a chance to evaluate the outcome of a special legislative session. Passage of the convention bills prior to a special legislative session would, we believe, increase the likelihood of real reforms coming out of the session. Further, it would allow the people of New Jersey to judge the results of a special session. And finally, it would assure the people of New Jersey of the shortest escape route from the property tax crisis, should the special session fail to produce real reforms.