TAX NEWS - 2010

New Jersey Tax: 5 ways the budget affects you

TAX REBATES: Eliminates property tax rebate checks this year. Some residents who received a rebate last year — including seniors and the disabled — may get one-quarter of what they got last year in a credit on their tax bills next year. About 103,700 tenants will be cut from the property tax relief program. A program to freeze property taxes for seniors will not take new applicants.

SCHOOLS, TOWNS, PROPERTY TAXES: With $1.27 billion in state aid cuts to schools and towns, local leaders predict higher property taxes, layoffs, program cuts.

NO NEW TAXES: Avoids major tax increases, leaving rates unchanged for state income and sales taxes. Democrats failed in their bid to raise taxes on residents making more than $1 million a year.

LOTS OF CUTS: Almost everyone loses something; cuts include family planning services, nursing homes and libraries. Motor vehicle agencies will be closed on Mondays. The earned income tax credit for low-income residents will be scaled back. Cuts in aid to NJ Transit mean higher fares.

MORE PAIN NEXT YEAR: Does not solve New Jersey's fiscal problems but pushes some of the biggest issues into the future. Skips a $3.1 billion payment into the investment fund for 780,000 current and retired public worker pensions. More debt has been refinanced instead of paid, and the fund that pays for road improvements is nearly out of money to do anything but pay debt. $300 million surplus leaves little wiggle room if something goes wrong.