NJ: Leader asks to raise 4% cap on property tax hikes

[SallyGrowler]

New Jersey's 4 percent cap on property tax bills should be raised to make room for a $57 million jump in the bills local governments face for police and firefighter pensions, the head of New Jersey's League of Municipalities told a state finance board today.

 

"The problem that I'm here looking for an exemption for is bad, it's very bad," William Dressel, executive director of the New Jersey State League of Municipalities, told members of the state Local Finance Board, as he presented his request this afternoon. "Given the economic times, given the policy decisions, this has a direct bearing on the financial conditions of the communities directly related to their pension costs."

 

State lawmakers in 2007 imposed a 4 percent limit on the growth of any municipality's property tax collections, in an attempt to rein in fast-growing local tax bills. Since municipal property taxes bring in about $6 billion annually, the 4 percent limit allows for another $240 million in taxes this year.

 

The cap includes several exceptions, including one that that exempts $112 million in increased public employee pension costs from the levy cap. Adding the police and fire pension exemption Dressel is seeking would raise the total pension exemption to almost $170 million, effectively changing the 4 percent growth limit to almost 7 percent.

 

Local pension costs have skyrocketed, from $53 million in 2004 to about $1.2 billion due in April 2009, as the result of rising benefit costs, soured investments and a state decision to suspend payments into the pension funds for several years.

 

Dressel said it is unfair to force local governments to absorb the increased pension costs at the expense of other services, since they are largely the result of state policy decisions.

 

Board chairwoman Susan Jacobucci said she would attempt to get a board vote on Dressel's proposal within the next month. But she noted the exemption would undermine the purpose of the tax cap.

 

"The property tax levy cap was put in so there was some tax relief to the residents," she said.

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[GeoffT]

What a stupid idea. It's bad enough that NJ is likely to lose 250,000 jobs in the next year. And of course more home foreclosures. And now this!

 

Where the heck do they get the idea that people losing jobs and homes will be able to pay more on property taxes?

[SallyGrowler]

[eddy]

Corzine should just write a check.

 

Fix everything.

 

[HatterasJack]

What a stupid idea. It's bad enough that NJ is likely to lose 250,000 jobs in the next year. And of course more home foreclosures. And now this!

 

Where the heck do they get the idea that people losing jobs and homes will be able to pay more on property taxes?

 

 

the salaries and benefits that are lavished on local yokal municipal cops is an outright disgrace!

 

these municipalities are undermanned and underarmed when these unions send in their big gun lawyers to renegotiate their contracts

 

they have zero fiduciary responsibility to the tax monies they oversee

 

so they give away the ranch contract after contract

 

and on top of it all, the cops retire at app. age 50, collect pensions and get second jobs !!!!!