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STATEMENT BY THE HONORABLE GARY PASSANANTE,
MAYOR OF SOMERDALE,
MEMBER, NJ LEAGUE OF MUNICIPALITIES EXECUTIVE BOARD,
CO-CHAIR, NJLM PROPERTY TAX REFORM COMMITTEE
REGARDING A CITIZENS CONVENTION FOR PROPERTY TAX REFORM
BEFORE THE JOINT LEGISLATIVE COMMITTEE ON CONSTITUTIONAL REFORM AND
A CITIZENS PROPERTY TAX REFORM CONVENTION
THURSDAY, OCTOBER 19, 2006
TRENTON, NJ
We judge real property tax reform to be that which 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 46%, 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.
Accordingly, we continue to support A-1858/S-756 and ACR-107/SCR-68 (or bills modeled on them).
The ideas embodied in 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. Further, in addition to this special session, Governor Corzine’s Property Tax Reform Transition Team explicitly endorsed a Citizens Convention. 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 have never opposed 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. If the Legislature enacts reforms that meet with the public’s approval, then there will be no need for a special convention. If it does not, then there must be a convention.
Passage of the convention bills would, we believe, allow the people of New Jersey to judge the results of this 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 r
STATEMENT BY THE HONORABLE GARY PASSANANTE
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STATEMENT BY THE HONORABLE GARY PASSANANTE,
MAYOR OF SOMERDALE,
MEMBER, NJ LEAGUE OF MUNICIPALITIES EXECUTIVE BOARD,
CO-CHAIR, NJLM PROPERTY TAX REFORM COMMITTEE
REGARDING A CITIZENS CONVENTION FOR PROPERTY TAX REFORM
BEFORE THE JOINT LEGISLATIVE COMMITTEE ON CONSTITUTIONAL REFORM AND
A CITIZENS PROPERTY TAX REFORM CONVENTION
THURSDAY, OCTOBER 19, 2006
TRENTON, NJ
We judge real property tax reform to be that which 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 46%, 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.
Accordingly, we continue to support A-1858/S-756 and ACR-107/SCR-68 (or bills modeled on them).
The ideas embodied in 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. Further, in addition to this special session, Governor Corzine’s Property Tax Reform Transition Team explicitly endorsed a Citizens Convention. 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 have never opposed 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. If the Legislature enacts reforms that meet with the public’s approval, then there will be no need for a special convention. If it does not, then there must be a convention.
Passage of the convention bills would, we believe, allow the people of New Jersey to judge the results of this 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.
We sincerely hope that it will not be needed. But we urge this Committee to recommend action on the Convention bills during this Special Legislative Session. That, along with all else you will propose, needs to happen before the First of the Year. |
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