PFoPT Summer 2002 Forum Series

Note:
Meeting of an organization at any of the facilities of Mercer County Library System in no way implies endorsement of the program.

Format:
Presentations were followed by audience questions.

Parking:
The parking lot at the Library is shared by library guests. Additional parking is in the West Windsor Township Municipal Building with entry off of Clarksville Road. (There is a short walkway connecting the two parking areas and then to the Library.)

Contact Guest Speakers
Visit Their Web Sites or Send Email

PFoPT Summer 2002 Series Forum Held on June 15th

At the first forum of this series, Mr. John Meyerle of Point Pleasant presented a tax reform proposal developed by the "Citizens for School Tax Reform". The turnout was lower that expected, but the event was considered informative my many that came. Ms. Ann Bergenstock and Mr. Meyerle evolved this proposal in 1999 after considering several of the related issues and alternatives.

The proposal essentially reduces each school tax segment of property tax by 90% and replaces this revenue with an NJ income tax surcharge of 43% which is returned to the local district. The school district budget process is not impacted by this process, with board and voter roles remain identical. They have presented this proposal to numerous groups in seven of the New Jersey counties. Visit the CSTR web site listed in the Summer Series section accessible below. Mr. Meyerle urges a write in campaign, and a draft letter and literature were provided to the attendees.

The PFoPT thanks Mr. Meyerle and Ms. Bergernstock for the trip to West Windsor to brief our residents and the WW Library for the use of their facility.

PFoPT Summer 2002 Series Forum Held on July 20th

At the second forum of this series, Mr. Jon Shure of Ewing Township and president of New Jersey Policy Perspective presented a tax reform proposal titled "Fair Immediate Responsible Simplifed Tax Relief". The turnout was again lower that expected, but the event was considered informative my many that came. NJPP published this tax proposal authored by Charles Lyon and Eric B, Schnurer in 2000. The proposal offers one of many possible methods to address tax reform to the "overall unjust nature of the New Jersey Tax system".

Mr. Shure described the elements of the proposal which essentially comprises two measures:

1. Adopts a new "Financial Assets Tax (FAT)" - personal intangible assets above $2 million" (investment assets excluding 401k, IRA's, and pensions) and
2. An increase in the NJ income tax upper bracket for from 6.37% to 8.87%.

Mr. Shure laid the foundation for the NJ need for property tax reform and indicated that the system had to recognize the limitation of some taxpayers to pay based upon real-estate assets alone. He indicated that the current NJ Saver program is essentially a state program enacted without an designated funding source, essentially it is against the general receipts.

Based upon year 2000 results, only one percent of residents would pay the FAT new tax. The proposed FAT (rate=0.0025 or 1/4%) combined with the additional tax on those taxpayers in the upper tax bracket, would generate about $2 billion in new revenue to offset the need to collect property tax. It was estimated that this alternate source of revenue would reduce the average tax payer assessment by $1000.

The PFoPT thanks Mr. Shure for coming to the community to brief the residents and address their questions on this alternative and possible solution to address Property Tax reform.

PFoPT Summer 2002 Series Forum Held on August 17th

At the third forum of this series, Mr. Eric Wilkinson and Policy Director at NJ Futures presented a tax reform proposal titled "Revolutionizing the Property Tax System in New Jersey to Fight Sprawl" The turnout was again lower that expected, but the event spawned many questions and discussion from those that attended.

Mr. Wilkinson reviewed the macro statistics of New Jersey's regressive Property Tax system:

• Statewide total property tax collected of $13.1 Billion,
• Average property tax paid by each person $1,760 (every man woman and child),
• Forty percent increase in NJ property tax revenues in decades of the 90's,

Mr. Wilkinson noted that a single state wide property tax could be enacted with a uniform tax rate of 2.41%. This would represent a reduction for about 60% of the tax payers and an increase for about 40%.

Noting that many alternative reforms is possible, NJ Futures considers the most likely route to property tax reform is a Constitutional Convention on Property Tax. However, the present climate at in the capitol does not seem to support this process.

NJ Futures suggest local governments, operating in the current framework, contribute to sprawl, while they chase ratables in their region to lower property taxes. Regional planning and state planning should redirect their goals to make urban development more productive to attract residents and reverse urban flight. Through these measures, the goals of open space preservation and environmental benefits will accrue to the state and the urban area communities will not require as much state aid.

The PFoPT thanks Mr. Wilkinson for coming to the community to brief the residents and address their questions on this alternative and possible solution to address Property Tax reform.

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