NJ Gov.’s property tax cap plan stalled as Dems offer less rigid alternatives

NJ Gov.’s property tax cap plan stalled

TRENTON, N.J. — Newark’s Democratic mayor may be a fan of Gov. Chris Christie’s plan to cap property tax increases through a constitutional amendment, but to get it on the ballot, the Republican governor will need support from more than Democratic mayors.

He’ll need support from Democratic legislators, as well, something he didn’t have Monday.

Assembly Democrats twice refused to take action on motions offered by Republicans to move the governor’s constitutional cap out of committee.

Democrats, who control both houses of the Legislature, have offered their own versions of bills to enact a lower cap on annual property tax increases.

The difference between the Republican governor’s plan and that of Democratic lawmakers centers around who can override the cap, if needed.

Christie’s proposed constitutional amendment would ban towns from raising property taxes by more than 2.5 percent without voter approval, while plans put forth by Senate President Stephen Sweeney and Assemblyman Paul Moriarty would allow for automatic exclusions to the cap, taking into account the cost of things like inflation and health care premiums.

“A hard cap would just destroy local governments and make it impossible to provide public safety, which then the state will be forced to fund,” Sweeney said. “This is a very attainable goal without going to the constitution, where if we make a mistake, we can never correct the problem.”

Sweeney, D-West Deptford, is proposing a 2.9 percent cap, while Moriarty, D-Turnersville, wants a 2.5 percent cap.

New Jersey already has a property tax cap. In 2007, Democratic Gov. Jon Corzine managed to get a 4 percent cap through the Legislature, but exceptions included increases in pension payments and health care costs and many towns found ways to exceed the cap.

“We put in a cap. It’s working. Now let’s lower it,” said Moriarty, who points to the fact that the average increase in property taxes last year was 3.3 percent, as compared to 7 percent the year before.

But critics say that a more rigid cap is needed and that residents deserve to have more of a say in spending by local officials.

“Our plan to constitutionally cap property taxes and government spending increases at 2.5 percent would give all voters direct control over how their money is spent,” said Assemblyman Declan O’Scanlon, R-Red Bank. “It’s precisely the type of permanent, constitutionally guaranteed property tax relief that everyone in New Jersey has been waiting for us to deliver.

Democratic Newark Mayor Cory Booker came out in favor of the governor’s plan on Monday, saying property taxes in Newark have gone up 76 percent in last decade and 19 percent in the past five years.

Booker said the governor’s hard cap would encourage towns to share services and called it a “historic opportunity.”

“Despite best efforts, we have not slain this beast,” Booker said.

Christie’s proposal must pass through an Assembly committee in less than three weeks to make it in time to get on the November ballot.

Associated Press writers Angela Delli Santi and David Porter in Newark contributed to this report.