NJEA-led Coalition unveils property tax-cut planSpecial legislative session sought |
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Published in the Asbury Park Press 1/20/05 By JONATHAN TAMARI, GANNETT STATE BUREAU TRENTON -- Saying the Legislature must deliver property tax relief now, a coalition led by the New Jersey Education Association unveiled a plan Wednesday it said would cut property taxes for most homeowners by ending tax rebates and raising income taxes on incomes of $70,000 or more. The plan, according to the NJEA, would reduce the combined income and property tax burden on some 80 percent of New Jerseyans. Homeowners earning less than $200,000 would pay no more than 6 percent of their income in property taxes. Property tax savings would be limited to $2,000 a year for anyone under the age of 65.
The groups called for a special legislative session to consider the plan and will launch a $300,000 television advertising campaign today that promotes their solution and opposes a proposal to hold a constitutional convention on property taxes. It will be the first media blitz on the convention, which few New Jerseyans understand, according to a recent poll. "We think we will make an impact," said NJEA executive director Robert Bonazzi. Their campaign will include a Web site, , and a toll-free number that is not yet up and running. The teachers union plan is also backed by the NAACP, the New Jersey Coalition for Property Tax Reform and the Education Law Center, which supports funding for poor school districts. They all said the Legislature must deal with the property tax question instead of turning to a convention, in which elected delegates would seek to make new laws. The fastest a convention could deliver relief would be 2007. "It is tough work," said Keith M. Jones, president of the NAACP's New Jersey state conference, "but that is what they (legislators) are elected to do." But convention supporters said the Legislature's track record provides no reason for hope, with or without a special session. "There's nothing the Legislature would do in a special session now that it couldn't have done 10 or 20 years ago," said William Dressel, executive director of the State League of Municipalities. "Why would anyone think it's going to happen now?" The NJEA is seeking legislative sponsors for its plan, but the income tax increases would face opposition from acting Gov. Codey, according to a spokeswoman. "(Codey) would not be enthusiastic about any proposal that's going to hike the income tax for middle-income families," spokeswoman Kelley Heck said. Under the plan being advocated by the NJEA, anyone earning less than $200,000 would see their property taxes capped at 5 or 6 percent. Those earning more than $200,000 would pay normal property taxes. Income taxes would rise for anyone making more than $70,000. Union officials said their proposal would raise taxes by 0.2 percent for those earning $80,000 and by 1.4 percent for anyone making $500,000 or more. In 2002, more than 2.3 million income tax returns were filed with taxable incomes below $200,000 and would, therefore, have property taxes capped. Some 810,000 returns reported more than $70,000 in taxable income and would then face income tax hikes. The point at which taxpayers would lose under the plan would vary case to case, depending on local property tax rates, the taxpayer's age, home values and household incomes. Some taxpayers' income-tax hikes would eclipse the benefits of their property-tax cap. Local entities such as municipalities and school boards would still levy taxes as normal, with the same increases that are allowed today. Any amounts not raised through local property taxes would be covered by the state. The plan would cost the state $3 billion initially, according to the NJEA. About half of that amount would come from the income tax increase. The rest would come from ending tax rebates mailed to renters and homeowners late in the year. The plan would have widely varying impacts, according to NJEA figures. For example, a person 65 or older who had a $35,000 income and lived in a home assessed at $100,000 would save $50. If that same person made $40,000 and lived in a home assessed at $160,000, they would save $1,800, according to the NJEA. |
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"This
plan is fair to everyone," said NJEA President Edithe
Fulton. "It will help residents stay in their homes."