Massive Tax Cut for Wealthy Seniors
To be clear, I would be fine with this if the cap was much lower. Also, I would love to see more aid for renters.
$250 annual rebate for renters? That's lame.
The tax cut would have helped me stay in NJ, but I agree that the cap should be lower.
It’s seems like a convenient way to make a powerful voting block less interested in property tax reform.
What I want to know is how they plan on making up the shortfall.
GoSlugs said:
Property taxes were one of the things that led us to leave NJ but this "reform" seems insane. Will taxes for people under 65 go up to pay for this? As someone in the article observes, seniors who make a half a million dollars a year really should be able to pay their fair share.
NYT: Property Taxes Could Be Cut in Half for Most Older N.J. Homeowners
The article mentions that there will be no dedicated funding for this program which would not take effect until 2026. Lack of dedicated funding could derail the proposal before the program becomes effective. I hope this does not happen but the delay in start date could make the discussion on this thread moot.
I hope this legislation is enacted because it will help so many of the older adults in our community who are struggling to pay their ever increasing real property taxes. High real property taxes is the number one reason older adults give for leaving our community for a part of the country with a lower cost of living. Should this exodus continue to happen all of us will lose the future valuable contributions so many of our older adults could continue to make to our community.
joan_crystal said:
The article mentions that there will be no dedicated funding for this program which would not take effect until 2026. Lack of dedicated funding could derail the proposal before the program becomes effective. I hope this does not happen but the delay in start date could make the discussion on this thread moot.
I hope this legislation is enacted because it will help so many of the older adults in our community who are struggling to pay their ever increasing real property taxes. High real property taxes is the number one reason older adults give for leaving our community for a part of the country with a lower cost of living. Should this exodus continue to happen all of us will lose the future valuable contributions so many of our older adults could continue to make to our community.
I'm all for property tax reform but why does it have to be bundled with what is, essentially, a massive giveaway for the wealthy? The rich should be paying more taxes, not less. People who make half a million dollars a year should be making valuable contributions to the public coffers.
The majority of older adults earn far less than $500,000 a year. The original proposal had no income restriction whatsoever and had a reduction of 50% of real property taxes up to $10,000. By the time the budget passes, the income ceiling could be less that what is presently proposed.
This proposal would be the sixth piece of legislation designed to ease the property tax burden in NJ. By far the most generous is the Senior Freeze program which freezes an eligible senior’s real property tax at what that Senior was paying in their base year. Depending on how long the Senior was continuously enrolled in the program, that tax reduction could be worth more that $6,500. Senior Freeze does have an income ceiling which is a lot less than $500,000.
Then there is the even more generous program for Veterans who have a 100% disability resulting from a qualifying service related injury. Eligibles pay no real property tax at all. There is no age or income restriction for this program.
What we should be doing is taking a look at all of the State programs that look to ease real property tax burden in NJ and come up with a coordinated program that helps those who need it.
We need to raise the income tax and undo the stupid Whitman cuts that led to (or at least exacerbated) the explosion in property taxes.
As usual, the powers that be in Trenton have proposed a plan that is just a band aid. No one seems willing to address the fundamental issues that drive high property tax rates in NJ.
yahooyahoo said:
As usual, the powers that be in Trenton have proposed a plan that is just a band aid. No one seems willing to address the fundamental issues that drive high property tax rates in NJ.
I think it’s a sort of divide and conquer sort of thing. Harder to get general reform when you buy off one, particularly politically active, segment of the electorate.
yahooyahoo said:
As usual, the powers that be in Trenton have proposed a plan that is just a band aid. No one seems willing to address the fundamental issues that drive high property tax rates in NJ.
Please explain the fundamental issues.
tjohn said:
yahooyahoo said:
As usual, the powers that be in Trenton have proposed a plan that is just a band aid. No one seems willing to address the fundamental issues that drive high property tax rates in NJ.
Please explain the fundamental issues.
Redundancy of government and government services at the local, county, and state levels.
565 municipalities and 600 school districts.
Healthcare costs for public employees.
Pension costs for public employees.
County and local governments aren't allowed to impose local income tax or sales tax.
The state imposes on local governments to deliver certain services, which must be covered by local property taxes rather than state funds.
No property taxes on vehicles.
Abuse of the PILOT Program by developers.
"The property tax accounts for over 40% of total State and local tax revenue in our State. The National average is just slightly above 30%. In 2002, the New Jersey per capita property tax burden amounted to $1,887 - almost doubling the National average of $979. New Jersey property taxes equaled 5%, as a percentage of personal income - almost 2 points above the National average of 3.2%. And in our State, those with the least shoulder a disproportionate share of the burden. Households with incomes in the lowest 20 % pay 9.2% of their earnings in property taxes, while the wealthiest 20 % pay 3.6% of their income through this assessment." (Source: https://www.njlm.org/FAQ.aspx?TID=19)
yahooyahoo said:
Redundancy of government and government services at the local, county, and state levels.
565 municipalities and 600 school districts.
Healthcare costs for public employees.
Pension costs for public employees.
County and local governments aren't allowed to impose local income tax or sales tax.
The state imposes on local governments to deliver certain services, which must be covered by local property taxes rather than state funds.
No property taxes on vehicles.
Abuse of the PILOT Program by developers.
"The property tax accounts for over 40% of total State and local tax revenue in our State. The National average is just slightly above 30%. In 2002, the New Jersey per capita property tax burden amounted to $1,887 - almost doubling the National average of $979. New Jersey property taxes equaled 5%, as a percentage of personal income - almost 2 points above the National average of 3.2%. And in our State, those with the least shoulder a disproportionate share of the burden. Households with incomes in the lowest 20 % pay 9.2% of their earnings in property taxes, while the wealthiest 20 % pay 3.6% of their income through this assessment." (Source: https://www.njlm.org/FAQ.aspx?TID=19)
this
Let's be clear, the pension problem is one of the state's (and its voters) own making, not the employees' actions. The state elected to not fund its obligations for a number of years in favor of cutting taxes (thanks a lot Christie (Whitman)). The healthcare costs are a universal cost problem not just for public employees. The system needs to be reformed for everyone and trying to place blame on public employees is simply wrong.
if we are going to be honest with ourselves, we need to face up to the role that racism plays in the reason we have 565 municipalities and 600 school districts. We are still living with the effects of redlining, with the result being that our state remains very segregated.
how many white suburbanites would raise their hands for county-level school districts if it meant their kids would be going to school with students from Irvington, Newark, Trenton or Passaic (among many other predominantly Black and Hispanic municipalities)?
we pay high taxes in large part to keep the status quo in place by retaining long-standing municipal and school district boundaries.
Steve said:
Let's be clear, the pension problem is one of the state's (and its voters) own making, not the employees' actions. The state elected to not fund its obligations for a number of years in favor of cutting taxes (thanks a lot Christie (Whitman)). The healthcare costs are a universal cost problem not just for public employees. The system needs to be reformed for everyone and trying to place blame on public employees is simply wrong.
I didn't blame public employees for the pension fund or healthcare costs. But these two things still need to be dealt with by the state government. They are two signficant drivers of property taxes, regardless of who's at fault.
Well, for the pensions, it's easy. Raise taxes and make the payments that are due and owing.
Property taxes were one of the things that led us to leave NJ but this "reform" seems insane. Will taxes for people under 65 go up to pay for this? As someone in the article observes, seniors who make a half a million dollars a year really should be able to pay their fair share.
NYT: Property Taxes Could Be Cut in Half for Most Older N.J. Homeowners