Assembly Republican Leader Alex DeCroce

DeCROCE: IF DEMOCRATS ARE WILLING, SUBSTANTIAL PROPERTY TAX RELIEF CAN BE ACHIEVED NOW

CUTTING GOVERNMENT WASTE AND CONSTITUTIONALLY DEDICATING PROPERTY TAX FUNDS CAN RESULT IN MASSIVE PROPERTY TAX CUTSNovember 9, 2006
Republican Leader Alex DeCroce/973-984-0922
Assembly Republican Office/609-292-5339

DeCROCE: IF DEMOCRATS ARE WILLING, SUBSTANTIAL PROPERTY TAX RELIEF CAN BE ACHIEVED NOW

CUTTING GOVERNMENT WASTE AND CONSTITUTIONALLY DEDICATING PROPERTY TAX FUNDS CAN RESULT IN MASSIVE PROPERTY TAX CUTS

Assembly Republican Leader Alex DeCroce today said it appears Democrats may be moving toward a property tax relief plan that increasingly sounds like a variation of the Assembly Republican Blueprint for Property Tax Reform, and urged that if they do so, they should not attempt to shortchange New Jersey overburdened property taxpayers.

"From recent newspaper reports it appears the Democrats are looking at a direct tax credit funded by the state picking up a portion of the local property tax bill," said DeCroce, R-Morris and Passaic. "This is essentially the same approach Republicans proposed last year, which was rejected at the time by the Democrat leadership."

Recent accounts in the press indicate that Democrat leaders are focusing on replacing the current property tax rebate program with a direct reduction in property tax bills on primary residences, and then constitutionally mandating that relief.

Last year Republicans unveiled the "Assembly Republican Blueprint for Property Tax Reform" calling for a 30 percent state funded reduction in property tax bills applied to primary residences. The tax cut would have taken the form of a direct reduction on property tax bills and it was to be constitutionally mandated.

Last week Assemblyman John Burzichelli spoke of a 20 percent reduction in property tax bills and in an Associated Press story today Assemblyman Reed Gusciora suggested a 25 percent cut in property tax bills.

"Cutting property taxes by 25 percent for primary residences, as suggested by Assemblyman Gusciora, would cost the state about $2.5 billion," DeCroce noted. "I believe that we can do much better than that if we are willing to eliminate government waste and make property tax relief a top priority."

DeCroce noted the state already spends $1.2 billion on the current Homestead Rebate Program and will have more than $600 million available from the recent sales tax dedication. In June Assembly Republicans proposed $2.2 billion in possible spending cuts, which if implemented, would make nearly $4 billion available for property tax relief. He pointed out that state spending has increased by nearly $10 billion in the past five years -- $3.5 billion last year alone.

DeCroce suggested that the state could also look at the feasibility of constitutionally dedicating a full one percent of the sales tax toward property tax relief, just as Tuesday voters approved dedicating a half-percent for that purpose.

"In the past five years property tax bills in New Jersey have increased by about 35 percent and we should, at the very least, be aiming to roll back that increase," DeCroce said. "If the Democrats are really willing to consider a plan similar to our 'Blueprint for Property Tax Reform,' they are to be commended. But they should not shortchange the taxpayers."

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