TAX NEWS - June 2010

Christie turning up the heat on property tax cap

Gov. Chris Christie seems ready to turn up the heat on mayors who are not going along with his plan to control property taxes by amending the Constitution to put a 2.5 percent cap on annual increases. That could be interesting, given the fact most mayors are not supportive. New Jersey has 568 municipalities, but as of Tuesday, only 201 mayors have pledged in writing to support the idea. So far, 23 of Morris County's 39 mayors are behind the plan.

The governor had the property tax cap in mind when he made a late night, surprise appearance at Tuesday's Republican county committee convention in Hanover.

Addressing mayors who haven't signed, the governor said, "Time is running out." He added that those who refuse to back his plan will have to explain to their residents why they are not trying to hold down property taxes.

"We're going to be coming to town and talking to (them) about it," Christie said. In a brief conversation afterwards, the governor said one problem may be that mayors don't fully understand the cap."Part of it is on us," to explain the cap, Christie said.

We have supported the cap as a way to try to get a handle on rising property taxes. What's difficult for mayors is that many towns are locked into employee contracts that award increases greater than 2.5 percent. That means they must try to reopen contract talks, which is hard to do, or make substantial cuts elsewhere. The governor has proposed collective bargaining reform to help towns hold down employee wage increases, but any relief will not be immediate.

Reluctance by some mayors to back the cap may be understandable, but we urge them to make a long term commitment to property tax control and to sign on to Christie's plan.

Residents are advised to talk to their mayors, whether they are backing the cap or not, and to share their views on how to reduce property taxes.

According to the governor's office, the 16 mayors who have not pledged to back the 2.5 percent cap are Thomas Donadio of Boonton Township; Nicole Hagner of Chatham Township; James Dodd of Dover; Joseph Pannullo of East Hanover; Richard Leary of Mine Hill; Tim Dougherty of Morristown; Frank Druetzler of Morris Plains; Art Ondish of Mount Arlington; Blair Bravo of Mountain Lakes; Joseph Nametko of Netcong; James Barberio of Parsippany; Edward Engelbart of Pequannock; William Budesheim of Riverdale; William Chegwidden of Wharton; Betty Simmons of Victory Gardens; and Russell Greuter of Rockaway Borough.