Dear Mayor:

Association of Municipal Assessors of New Jersey (AMANJ) President Bernie Haney and John Lloyd, Esq. presented testimony yesterday before the Joint Committee on Constitutional Reform and a Citizens Property Tax Convention. Mr. Lloyd serves as General Counsel for AMANJ and as Associate Counsel for the League of Municipalities. (The complete statement can be found on our website: njslom.org, see Property Tax Session Updates – Resources-Sept. 14.)

These experts in local property taxation were asked to evaluate property tax systems utilized by different states to determine if a change from New Jersey’s local assessment and collection system could provide property tax relief or reform.

In the presentation, Mr. Haney described the State run system used in Maryland counties, the county run system used in Pennsylvania and the local system employed in Connecticut. He  also commented on how these systems compare with current New Jersey practice and how our system will operate with the soon-to-be-implemented PAMS (Property Assessment Management System). Mr. Haney asked the Committee to respect the uniformity and predictability that New Jersey’s current process yields. Finally, Mr. Haney explained how the availability of revenue sources other than the property tax allow municipalities in other States to ameliorate the regressive impact of real property taxation.

The Committee also heard from groups seeking to radically change the way taxes are collected in New Jersey. Speakers said regional taxation would eliminate disparities between communities and help halt suburban development and urban decay, and detailed how the Minneapolis-St. Paul area has used regional property taxation for 25 years.

The League has long opposed this option. The solution to our over-dependence on regressive property taxes is not another form of property taxation – especially one that would, for example, increase the property tax burden on a fixed or low income household in a relatively ‘low property tax’ jurisdiction; while decreasing the property taxes of a two strong income couple who have chosen to reside in a relatively ‘high property tax’ town.

While such ‘sharing’ may appear to spread the current burden more evenly around the State, it would, instead, actually hurt many of those most in need of relief. And, it would do nothing to reduce the total amount of property taxes collected, Statewide. Any questions call Jon Moran at (609) 695-3481 ext. 21.