RESOLUTION #2007-013

 

OPPOSING LEGISLATION TO CAP PROPERTY TAX LEVY INCREASES TO

4 PERCENT

 

            WHEREAS the Joint Committee on Constitutional Change and Citizens Property Tax Reform Convention is proposing legislation that would cap property tax levy increase to four percent; and

 

WHEREAS property tax in New Jersey is determined by a number of variables, including the value of the property; the cost of municipal and county programs and services and the costs of local public schools; the availability of other revenues to cover those costs; the extent of the presence of tax exempt properties in the municipality; and total value of all the taxable properties in the municipality and county; and

 

WHEREAS a cap is added to the equation to determine property tax and does not change any variables; and

 

WHEREAS the variables need to be taken into account before any limits are placed on local budgets; and

 

WHEREAS the Division of Local Government Services in the State’s Department of Community Affairs uses a nationally recognized standard to gauge the increasing costs of local government programs and services; and

 

WHEREAS this implicit Price Deflator measures the impact of inflation on local budgets with annual increases for the last five years at 1%, 2.5%, 3.5%, 4.5% and 5.5%; and

 

WHEREAS over the last five years, the State of New Jersey has provided municipalities with level funding of major property tax relief programs and the municipalities have had to rely almost exclusively on the property tax to adjust to those increases; and

 

WHEREAS the concept of CAPS itself is not opposed, but implementing restrictions without a balanced plan for real and sustainable property tax reform will not work; and

 

WHEREAS the Board of Commissioners of the Borough of Harvey Cedars believes that such legislation would be detriment of the residents of the Borough of Harvey Cedars as well as the residents of the State of New Jersey.

 

NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Borough of Harvey Cedars, State of New Jersey, as follows:

 

1.                            Legislation that would cap property tax levy increases to four percent should not be enacted.

2.                            The Borough Clerk shall forward certified copies of this resolution to the following:

Governor Jon Corzine

New Jersey State Legislature

9th, 10th and 30th Legislative Districts

Ocean County Municipalities

 

PASSED ON:  January 23, 2007