Editor of the Star-Ledger,

Homeowners of New Jersey have lost again. The Joint Legislative Committee on Constitutional Reform and Citizen Property Tax Constitutional Convention has succumbed to the same old politics and inaction that has plagued this state for decades. Of the eleven recommendations just released by the Joint Legislative Committee, six recommend no change, three recommend further study, and two recommend cooperation with the Governor, with conditions: a property tax cap – developed so as to have no “unintended adverse consequences”; and a recommendation to “consider” an independent state auditor – but only if it can be shown that the position would not “undermine existing oversight agencies and functions.” The show piece “tax reform” recommendation is a repackaged property tax rebate of 20% for selective taxpayers “as long as resources allow.”

Property taxes in Orange have gone up 20% and 12% in the last two years alone. This year, with a revaluation, many homeowner tax bills have gone up 50% to 100%. Another 6% increase is built into next year’s budget. Nothing the Committee on Property Tax Reform has recommended will have any meaningful affect on the magnitude of our city’s residential property tax problem. Meaningful reform was killed by legislators when they took the “Uniformity Clause” and “local options taxes” off the table for discussion.

The Uniformity Clause in the New Jersey Constitution was put in place in 1875 to protect residential homeowner and make sure that businesses and special interest entities paid their fair share. Times have changed. It is not “uniform,” nor is it fair, that a business cost (that is passed on to consumers anyway) of an income producing property be compared to a non income producing property that provides primary shelter to a citizen. Loss of profits can not be fairly compared to loss of one’s home. It is one thing to debate the merits of the NJ Constitution’s Uniformity Rule and its impact on business taxes, it is quite another to see the tax bill of the White Castle burger restaurant down the street decrease by $30,000 while a homeowner’s personal property tax increases by $5000 in one tax year!

Governor Corzine’s local options taxes proposal to allow municipalities the flexibility to raise local taxes to offset property taxes would allow the City of Orange to institute a 1% sales tax. The proceeds, used for local property tax relief, would have immediate positive impact on homeowners tax bills while having a negligible impact on local business. The City of Orange has been designated an Urban Enterprise Zone and the 1% increase in sales tax would only bring the total sales tax even with the rest of the State.

The promise of bold, real solutions to the New Jersey property tax crisis seems to have again fallen to the status quo and the politically palatable.

Responsible Citizens For Orange

(Letter was not responded to or published by the Star-Ledger)