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Regional property taxation catches lawmaker interest; others wary
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By TOM HESTER Jr.
Associated Press Writer

September 14, 2006, 2:44 PM EDT

TRENTON, N.J. -- In a move that would significantly change how property taxes are collected in New Jersey, state lawmakers on Thursday debated whether the state should move away from having each town collect property taxes.

An interfaith group that seeks to resolve inequality in New Jersey communities and a Minnesota law professor suggested that the state shift to regional property taxation, which they argued could help most homeowners and end competition for commercial development.

"It creates a community of interest," Myron Orfield, an associate law professor at the University of Minnesota, told a special committee considering New Jersey property tax changes as he detailed how the Minneapolis-St. Paul area has used regional property taxation for 25 years.

Assemblyman John Burzichelli, the committee co-chairman, said he found the testimony "very interesting," but didn't know if the idea would work in New Jersey.

"The issue is very engaging," said Burzichelli, D-Gloucester.

Lawmakers have until Nov. 15 to devise ways to cut the state's highest-in-the-nation property taxes.

Rohn Heim, of the interfaith New Jersey Regional Coalition, said regional taxation would eliminate disparities between communities and help halt suburban development and urban decay.

While Orfield said his analysis indicated regional taxation would mean reduced taxes for an "overwhelming majority" of New Jersey communities, Assemblyman Rick Merkt worried about those who might see increased taxes.

"It sounds too good," said Merkt, R-Morris.

In 1972, Gov. William Cahill proposed a statewide property tax, but saw it defeated overwhelmingly by lawmakers. Cahill was then denied renomination by Republicans, becoming the only state governor to lose a primary election.

In 2002, lawmakers pushed _ unsuccessfully _ to give citizens the right to convene a constitutional convention to rework the state's tax system, but shore communities and the state League of Municipalities supported it only after convention advocates agreed to bar delegates from considering a statewide property tax.

"The solution to our overdependence on regressive property taxes is not another form of property taxation," said Bill Dressel, the League's executive director.

He said tax sharing could increase property taxes for people on a fixed and low income and cut taxes for those with lofty incomes.

"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," Dressel said.

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This article originally appeared at:
http://www.newsday.com/news/local/wire/newjersey/ny-bc-nj--propertytaxes-reg0914sep14,0,5950152.story?coll=ny-region-apnewjersey

 

 

 

 

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