To the Editor of the Star-Ledger,

 

The Responsible Citizens for Orange committee strongly supports Governor Corzine’s proposal to allow municipalities the flexibility to raise local taxes to offset property taxes. A 1% sales tax whose proceeds are for local property tax relief would have an immediate positive impact on our homeowners while having a negligible  impact on local business. Orange Township has been designated an Urban Enterprise Zone and the 1% increase in sales tax would bring the total sales tax even with the rest of the State.

 

Our 27th  legislative representative (and State Senate President) Richard Codey, is against new taxing powers for municipalities having stated it is “the last thing we need to be doing in terms of sending a message”  (Star-Ledger Oct 22, 2006).  Mr. Codey and some other NJ legislators seem to have missed the message sent to them from the citizens they work for. The time for playing politics as usual is over. There is a crisis of major proportions in this State.

 

The Township of Orange is the “perfect storm” of that crisis and the “poster child” of the  realities of the property tax  issues now being debated by the NJ Legislature’s Special Session on Property Tax Reform.  The recently completed property revaluation has resulted in individual homeowner tax bills going up 40-100% on top of the previous year’s 12% general tax increase. Unlike other municipal tax upheavals (like the recent Newark revaluation), there is no phase in of the tax increases or tax relief programs to soften the economic impact of these increases. Payments are due this quarter. Homeowners are faced with yearly tax bills sometimes exceeding $5000 over what they had previously been paying. $500/month increases in mortgage tax escrow payments and escrow payments that exceed principle and interest payments are not uncommon.

 

Orange is not a wealthy municipality. Many of the homeowners, who have lived years in the older homes that are bearing the brunt of the tax increases, are living on fixed income.  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!

 

The Uniformity Rule in the New Jersey Constitution was put in place in 1875 to protect the 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.

 

Our members do not object to paying taxes as long as the money is raised fairly and spent wisely. We are pro business and support reforms that will encourage economic development in Orange and in the State of New Jersey– but not at the expense of losing our homes, retirement savings and our future.

 

Responsible Citizens For Orange

 

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