Property Tax Relief Demanded By Union Co. Mayors

UNION COUNTY, NJ — Several Union County mayors are in support of a Senate and Assembly bill that would provide local property tax relief for many residents.

Senate Bill 330 and Assembly Bill 3804 aim to restore energy tax relief funding to municipalities over a two-year period. The mayors of Westfield, Summit, Cranford, Scotch Plains, Fanwood and Garwood all pledged the support for these bills, which could bring millions of dollars back to municipalities.

According to the New Jersey League of Municipalities (NJLM), for over a decade, state lawmakers have diverted funding intended for local programs, local services and local property tax relief to fund state programs.

The bill explains that taxes on gas and electric utilities were originally collected by municipalities, and when the state made itself the collection agent for these taxes, it promised to return the proceeds to towns for property tax relief.

But it claims that state officials have diverted this funding from energy taxes to "plug holes in the state budget and to fund state programs."

"Instead of being spent on local programs and services or used to offset property taxes, the money has been spent as successive legislatures and administrations have seen fit," NJLM says on its website.

The bill further states the diversion of these energy tax receipts to the state's General Fund has left many municipalities with serious need and burdensome property taxes, which further jeopardizes property tax relief funding for future years.

According to the website, since 2001, municipalities have lost $14 billion in Energy Tax Receipts Funding. It also says the state has reduced the Consolidated Municipal Property Tax Relief Aid, which is comprised of revenues that should be returned to municipalities.

More than 200 mayors across the state have shown their support for these two bills. The Senate Bill passed unanimously in March, and the Assembly companion bill is awaiting a hearing.

The bill could restore approximately $330 million for towns across the state, the website states.

The Scotch Plains Township Council also recently adopted a resolution supporting the state legislation in hopes that it will lower taxes for residents.

“I am proud to join the call for more property tax relief and look forward to sharing our resolution with our State Legislators and the Governor,” said Scotch Plains Mayor Josh Losardo in a statement. “Our residents deserve their fair share of property tax relief especially our seniors living on fixed incomes and families raising children. The restoration of this fund will provide much needed relief."

The primary sponsors of the bill include NJ Senate President Nicholas Scutari, Senator Troy Singleton, Assemblyman David Benson, Assemblywoman Sadaf Jaffer and Assemblyman Paul Moriarty.

To learn more about the bill and how you can support it, check out njenergytax.org.