RHUDY & ZEE ON PROPERTY TAX REFORM:
‘WE HAVE THE SOLUTION. WE HAVE THE MEANS. WE HAVE THE COURAGE TO MAKE IT HAPPEN.’
- Homeowner Tells How Property Taxes Have Risen Dramatically Since Democrats Have Been in Control -
Pittsgrove, NJ - After a corrections officer told how property taxes on his Pittsgrove Township home have risen dramatically over the past four years, Harrison Township Mayor Phil Rhudy and Elmer School Board member Jim Zee, the Republican candidates for the State Assembly in Legislative District 3, said the failure of their Democratic opponents to address the problem is driving people from their homes.
The news conference was held at the home of Charlie Moore on Crow Pond Road who said he and many others need relief from high taxes now.
“The people are desperate for real relief,� said Moore. “Many are on the verge of selling their homes and leaving the state because of high property taxes. We need help now. We can’t afford to wait years for a constitutional convention to come up with a plan and then hope it’s acceptable to the people.�
Rhudy and Zee said the slashed rebate checks middle class homeowners recently received hardly make a dent in the problem.
“Adding a few bucks more to rebate checks, as our opponents have proposed, won’t make much difference either,� Rhudy said. “A permanent 30 percent reduction in property tax bills will.�
In the past few weeks, newspapers across the state and region have reported how unaffordable New Jersey has become as a place to live since the Democrats have been in control,� Zee noted. “An October 4th report in The Philadelphia Inquirer was headlined ‘Taxed Beyond Relief.’ The following day a column entitled ‘Trying to Keep N.J. from becoming the Unaffordable State’ ran in The Star-Ledger. On October 16th, the Asbury Park Press had an article with the headline ‘Leave N.J., or Go Deep into Debt? Taxes, High Costs Squeeze Middle Class.’ This is the legacy left by our opponents.�
Rhudy and Zee said the 30%-in-3 plan to lower property taxes is the answer. It will provide immediate, significant and permanent relief. They noted that the Asbury Park Press has endorsed the plan saying not only is it achievable, its enactment is imperative. “We think it can be done,� the Asbury Park Press said in its editorial endorsement. �And it must be done. The middle class is fleeing the state in droves; that trend will accelerate dramatically in the next few years if the structural spending problems at all levels of government aren't confronted.�
“John Burzichelli and Doug Fisher don’t have a long-term prescription for property tax reform,� Rhudy said of their Democrat opponents. “A 10 percent increase in rebate checks doesn’t even make it as a stop-gap. And banking on a constitutional convention is wishful thinking since the Legislature, now controlled by the Democrats, failed to authorize a convention in 2002, 2003, 2004 and 2005. If Democrats are at the helm, 2006 won’t be any different.�
“The 30%-in-3 plan can be done now,� Zee said. “In fact, the Assembly Republicans have already identified a billion dollars of waste in the State Budget to pay for the first year of the program. By the time the plan is fully implemented in year three, the cost will be less than the increase in spending authorized by Democrats in a single year. Claims by Democrats that there is not enough money to fund the 30%-in-3 Guarantee is untrue and a smokescreen to cover their own lack of a viable alternative.�
The projected average savings the first year of the 30%-in-3 program could be as much as $1,200 for senior citizens. Seniors and non-seniors will not receive anything less than what they received as rebates in 2004.
Tenants would continue to receive the same rebates they do today. Tax exemptions and constitutionally authorized rebate programs for veterans, senior citizens and the disabled would also be continued.
The non-partisan Office of Legislative Services projects the 30%-in-3 plan would cost about $1 billion the first year when homeowners receive a 10 percent property tax cut or a tax reduction that is no less than the size of their 2004 rebate check. The projected cost for the second year, when property taxes would be reduced 20 percent, is $2 billion. In the third year, when the full 30 percent tax cut is instituted, the anticipated cost is $3.2 billion.
Funding for the program would come from the money now used for the rebate program, about $1 billion; natural revenue growth, which averages about $1 billion a year; and $1 billion dollars in budget savings already identified by Assembly Republicans. Additional revenues would be generated by creating an elected, independent state auditor, who would identify and eliminate waste at all levels of government, and ending pay-to-play “corruption tax,� which costs the taxpayers millions of dollars a year.
The plan includes a toolbox of ways local governing bodies can keep property taxes in check. It calls for a sensible cap on local spending. Other components include:
A constitutional cap limiting the growth of state spending which could only be exceeded by a two-thirds super-majority vote of the Legislature;
A constitutional requirement that new taxes could be approved only by a two-thirds super-majority vote of the Legislature, and
A constitutional guarantee that any unanticipated tax revenue realized by the state in the future be used exclusively to expand the 30% property tax reduction.
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