Trenton puts off property tax reform

Governor will address the Legislature July 28

Tuesday, July 11, 2006

BY DEBORAH HOWLETT

Star-Ledger Staff

Just two days after the long battle over the state budget ended, Gov. Jon Corzine and legislative leaders yesterday agreed to wait until the end of the month to start what might turn out to be an even more acrimonious fight: finding ways to reduce property taxes.

The governor plans to address lawmakers in joint session July 28, or soon after, to kick off a special legislative session aimed at cutting New Jersey property taxes, which are the highest in the nation.

"Property tax reform has consistently and repeatedly been at the top of the public agenda. The governor is looking forward to addressing the Legislature on this issue," Corzine spokesman Anthony Coley said.

The start of the special session has been timed to coincide with voting sessions by lawmakers to place a referendum on the November ballot asking voters to dedicate half of the budget's sales tax increase to property tax relief. The sales tax will rise to 7 percent from 6 percent Saturday.

That ballot measure -- part of the deal that ended the budget stalemate -- can't be considered by the full houses of both the Assembly and Senate until July 28, because rules require that at least 20 days must pass after constitutional amendments are approved by committees.

"Although it wasn't intended this way, the timing fits very nicely," said Assembly Speaker Joseph Roberts (D-Camden). "The goal will be to make August very productive."

New Jersey property taxes have soared 29 percent over the past four years, but finding ways to reduce them has eluded lawmakers for decades.

The special session on property taxes will designate four joint legislative committees that will deal separately with some of the more politically charged issues in the debate: school spending; the cost of public employee benefits and pensions; the consolidation of local governments; and plans for a citizens' tax convention.

The committees will hold two months of hearings with a goal of producing a package of bills that the full Legislature can consider before the end of the year, said Senate President Richard Codey (D-Essex).

The timeline isn't quick enough for Republicans.

Senate Minority Leader Leonard Lance (R-Hunterdon) said delaying a recommendation on a citizens' tax convention until after August guarantees it won't get onto the ballot until November 2007. Any citizens' convention wouldn't happen until 2008, he said, and the convention's reforms would not likely be implemented before 2009.

"That's too distant," Lance said. "We should have a public question this year on the constitutional convention."

Lawmakers could move much more rapidly in dealing with long-term solutions to the property tax crisis if they chose to, said William Dressel Jr., executive director of the New Jersey State League of Municipalities.

In a letter yesterday to Codey and Roberts, Dressel pointed out that much of the legislation likely to be introduced through the special session has been in the hopper the past four years, most notably the resolution calling for a citizens' property tax reform convention.

"They have been subject to intense review, scrutiny, debate, dissection and refinement," Dressel wrote. "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."

But legislative leaders did not seem eager, so soon after the budget wars, to resume battle.

Although they said last month they wanted to immediately take up property tax reform after a budget was passed, the fight over the sales tax and the week-long shutdown of state government left many of them drained. They also wanted to give individual members at least some time over the summer for a break.

"This was grueling for all participants," Roberts said of the past two weeks. "It will be good to recharge everyone's energy."

Deborah Howlett covers politics. She may be reached at (609) 989-0273 or dhowlett@starledger.com.

"Property tax reform has consistently and repeatedly been at the top of the public agenda. The governor is looking forward to addressing the Legislature on this issue," Corzine spokesman Anthony Coley said.

The start of the special session has been timed to coincide with voting sessions by lawmakers to place a referendum on the November ballot asking voters to dedicate half of the budget's sales tax increase to property tax relief. The sales tax will rise to 7 percent from 6 percent Saturday.

That ballot measure -- part of the deal that ended the budget stalemate -- can't be considered by the full houses of both the Assembly and Senate until July 28, because rules require that at least 20 days must pass after constitutional amendments are approved by committees.

"Although it wasn't intended this way, the timing fits very nicely," said Assembly Speaker Joseph Roberts (D-Camden). "The goal will be to make August very productive."

New Jersey property taxes have soared 29 percent over the past four years, but finding ways to reduce them has eluded lawmakers for decades.

The special session on property taxes will designate four joint legislative committees that will deal separately with some of the more politically charged issues in the debate: school spending; the cost of public employee benefits and pensions; the consolidation of local governments; and plans for a citizens' tax convention.

The committees will hold two months of hearings with a goal of producing a package of bills that the full Legislature can consider before the end of the year, said Senate President Richard Codey (D-Essex).

The timeline isn't quick enough for Republicans.

Senate Minority Leader Leonard Lance (R-Hunterdon) said delaying a recommendation on a citizens' tax convention until after August guarantees it won't get onto the ballot until November 2007. Any citizens' convention wouldn't happen until 2008, he said, and the convention's reforms would not likely be implemented before 2009.

"That's too distant," Lance said. "We should have a public question this year on the constitutional convention."

Lawmakers could move much more rapidly in dealing with long-term solutions to the property tax crisis if they chose to, said William Dressel Jr., executive director of the New Jersey State League of Municipalities.

In a letter yesterday to Codey and Roberts, Dressel pointed out that much of the legislation likely to be introduced through the special session has been in the hopper the past four years, most notably the resolution calling for a citizens' property tax reform convention.

"They have been subject to intense review, scrutiny, debate, dissection and refinement," Dressel wrote. "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."

But legislative leaders did not seem eager, so soon after the budget wars, to resume battle.

Although they said last month they wanted to immediately take up property tax reform after a budget was passed, the fight over the sales tax and the week-long shutdown of state government left many of them drained. They also wanted to give individual members at least some time over the summer for a break.

"This was grueling for all participants," Roberts said of the past two weeks. "It will be good to recharge everyone's energy."

Deborah Howlett covers politics. She may be reached at (609) 989-0273 or dhowlett@starledger.com.