Worth Watching: NJ's Special Session on Property Tax Reform

New Jersey, in response to having the highest average property tax levies in the nation, highest per capita property taxation, 2nd highest in terms of reliance on property tax for raising government revenues, and 3rd in terms of a percentage of personal income, is taking the radical step of a special legislative session on Property Tax Reform.

Four joint commitees were formed, and will meet throughout the summer:

1. JointLegislative Committee on Public School Funding Reform


2. Joint Legislative Committee on Government Consolidation and Shared Services


3. Joint Legislative Committee on Public Employee Benefits Reform


4. Joint Legislative Committee on Constitutional Reform and Citizens Property Tax Constitutional Convention

What is particularly interesting is that they are approaching this from two directions - not only are they looking to reduce property taxes, they are also looking at reducing the budget.

One item on the table is shared services between municipalities, to consolidate and reduce overhead. However, in doing so will also increase unemployment, which is something that news reports to date seem to be ignoring.

One PhilliBurbs article entitled "As property tax reform talks begin, possible tax changes emerge" also explores potential ideas that are on the table:

• More sales tax and income tax moneys being directed towards education
• Income tax surcharge for education
• base school taxes on a flat rate across the state
• base school taxes on a statewide development plan, reducing taxes to encourage growth in certain areas
• Consolidate school districts into 21 county-based districts and collect county-based school taxes
• higher property tax for land, less for property tax for buildings
• allow local sales taxes