Remember the old adage that there are only two things in life you must do: pay taxes and die, urban myth or truth? For the sake of argument, let’s pretend that it’s true. So, if the adage is true is there anything that says we can’t have some influence over the amount of taxes we pay and when we die? I’m going to leave the latter question of life and death as food for scholarly thought and address the former as a more immediate cause for concern.
Governor Corzine is proposing to allow municipalities in the state to delay their portion of the 2009 contribution to the states pension fund. The $584 million payment, due in April, could help to hold off a significant property tax increase for 2009. However, there is no reason to believe that Gov. Corzine and high ranking democrats will be able to gather the needed votes for this to happen. With a projected budget deficit of $5 billion dollars and the fact that local spending is out of control it remains a very real possibility that North Plainfield property tax will increase. Folks, there does not seem to be any real relief on the horizon!
On January 8th 2009, join members and supporters of NPCCR as we welcome Fran Gargano, Esq. to our regular monthly meeting. Fran is a local attorney who will be presenting on Appealing Home Appraisals. Its time to take every opportunity to make sure that as property owners, in North Plainfield , we are paying our fair share and ONLY our fair share of taxes. We can have an influence on our taxes.
The following is from the New Jersey State League of Municipalities website:
Are property taxes a big problem for the people of New Jersey?
Much has been written about New Jersey’s chronic over-reliance on property taxes. When we look at the statistics, the scope of the problem can be intimidating.
According to the Census Bureau, in 2005, property taxes in New Jersey totaled $19 billion, and represented 45% of all State and Local own source revenue. Nationally, property taxes equaled 31% of State and local own source revenue. Sales taxes in our State composed 24% of those revenues; and personal income taxes equaled 19%. Nationally, sales taxes were 35% of the total; while personal income taxes were 22%. New Jersey’s rank among the fifty states, per capita, was #1 in property taxes, #6 in sales taxes and #16 in personal income taxes. In 2006, the average residential property tax bill was $6,331. According to the national Federation of Tax Administrators, we were second in over-all reliance on property taxes-topped only by New Hampshire, a State that does not levy an income or a sales tax. Among States that collect sales, income and property taxes, only in New Jersey do property tax collections exceed sales and income tax collections, combined. In New Jersey, property taxes account for about 98% of all locally collected revenues. The National average is about 73%. And in our State, those with the least shoulder a disproportionate share of the burden.. Households with incomes in the lowest 20 % pay 9.2% of their earnings in property taxes, while the wealthiest 20 % pay 3.6% of their income through this assessment.
1 response so far ↓
Frank N. D'Amore Sr. // January 2, 2009 at 7:21 pm |
Gov. Corzine is trying to convince our legislators to pass another pension holiday law.
Former Gov. Whitman did this and with 4 seperate acts passed by the legislature, P.L.1997, Chapter 115, P.L. 2000, Chapter 8, P.L. 2001, Chapter44, and P.L. 2003, Chapter 108
municipalities were able to either not pay their required portion into the Police and Firemans Retirement System (PFRS)
or to pay just part of their share. The employees covered under PFRS were required to pay their full amount.
The money saved by not paying into the PFRS was supposed to to give property tax relief to the residents of the municipalities involved.
By not paying our required portion into PFRS
between 2000 & 2007, North Plainfield saved over $2,000,000.00 in fact in 2002 & 2003 our contribution into the system was zero dollars. The $2,000,000.00 plus is what gave North Plainfield property owners the property tax relief that we enjoyed for those years. Checking the municipal tax portion on my old tax bills, I find that for some reason I did not enjoy any of that promised tax relief. Makes one wonder what the $2,000,000.00 was used for. Now we tax payers have the responsibility of paying the PFRS the money owed. To have another pension holiday is ludicrous and has the potential to puts the Police and Firemen’s Retirement System in jeopardy. A time and motion study would show us where we can save municipal tax dollars. Our board of education is also overdue for a time and motion study.