Property Taxes
Cap 2.0 Real Property Tax Relief Now
Over the past decade, property taxes in New Jersey have grown by 70% and local municipal spending has grown by 69%. Seniors have been struggling to keep their homes, young couples have refrained from buying homes, and middle income families have struggled to make ends meet – all because of property taxes.On July 3, 2010 Governor Christie reached a bipartisan consensus with Legislative leaders to provide long-awaited property tax relief for beleaguered New Jerseyans through a hard cap of 2 %. This 2% cap delivers long overdue relief that cannot be rendered meaningless by politicians. By putting the people first and giving them the ultimate say, New Jersey is finally taming the property tax beast. No longer will Trenton bureaucrats decide property taxes. Any waivers of the 2.0 hard cap will be granted by a vote of the people, not the bureaucrats of the Local Finance Board. A local cap override referendum would be approved by a simple majority vote.
The Consensus Agreement Holds Firm Governor Christie's Principles:
- A Hard Cap. Cap 2.0 is a hard cap that allows for continued, aggressive reform. With this hard cap, in any year, the property tax levy cannot increase more than 2 percent, with very limited exceptions.
- Letting the People Vote. Allowing for the people to decide their own fate and determine when increases in property taxes should exceed the cap is central to achieving meaningful reform. As such, the agreement gives citizens the ability to take back their state and have a much needed voice in their local communities.
- Limited Exceptions Ends "Swiss Cheese" Cap Currently In Place. Currently there are 14 exceptions or waivers, including a catch all that allows for exceptions not covered in the first 13, which has made the current 4 percent cap almone initially proposed by the Governor.ost irrelevant. Today's agreement allows for few exceptions, including
- Capital expenditures and pay required debt service
- Pension benefits
- Health benefits
- Expenses incurred in connection with a state of emergency as determined by regulations to be defined.
