The property tax referendums replace a system in which municipal officials appealed to the state's Local Finance Board for permission to exceed the current cap Watch video
Ewing Mayor Bert Steinmann appears in a 2005 file photo. His town was given a waiver to exceed the cap on property tax hikesTRENTON — At least 27 towns have notified voters they may be asked to raise their taxes through a referendum next month, the first time New Jersey residents will have a say in their property tax rate.
Under the Christie administration’s new property tax cap that goes into effect July 1, residents will decide if their town or school district can exceed a 2 percent limit on collections, replacing a process in which towns asked the state to exceed the current 4 percent cap.
The 27 towns that may hold referendums are: Asbury Park, Bordentown Township, Brick, Carneys Point, Chesilhurst, Edgewater Park, Gloucester City, Harrison, Hope, Jackson, Lumberton, Mansfield, Maurice River, Medford, Mount Ephraim Borough, Mount Holly, Mount Laurel, North Arlington, Oxford, Penns Grove, Plumsted, Prospect Park, Riverdale, Salem City, Shrewsbury, Sussex Borough and Wildwood City, according to the Department of Community Affairs.
Another three— Hardwick, Lambertville and Northvale — have notified the state League of Municipalities, but not the state, that they plan to hold referendums.
The new cap law does not change the process for school districts. Residents have always been able to vote on tax increases, and have consistently rejected them over the past two years. The Department of Education does not collect data on which school districts will be proposing increases to voters next month.
The property tax referendums replace a system in which municipal officials appealed to the state’s Local Finance Board for permission to exceed the current cap.
Two towns, Lawnside Borough and Ewing, appeared before the board Wednesday, and were granted a waiver to exceed the 4 percent cap.
Tom Neff, director of the Division of Local Government Services, said this year’s referendum process is "much improved."
"Many times applications come to us towards the end of the fiscal year and there really remains very little choice so late in the fiscal year other than to allow tax increases to pay the bills," Neff said. "Thankfully, in the future the process by which levies will be increased beyond the statutory norm will be for the voters to make that decision."
Ewing was given a $4.9 million waiver, with the condition that the township enforce a pay-to-play ordinance.
If the waiver was denied, "we would have to shut down all non-essential services," said Ewing Mayor Bert Steinmann. "It would be a travesty."
Lawnside was granted a waiver of $119,570 despite appeals from residents who said they could not afford to pay any more taxes.
Editor's note: An earlier version of this story mistakenly named Florence as a town that had notified voters it may hold a referendum in April exceeding the 2 percent tax cap. Florence will not hold a referendum in April.
Previous coverage:
• N.J. municipalities scramble to notify voters on property tax referendum
• More N.J. mayors agree to share services in effort to reduce costs
• Mayors press N.J. lawmakers for 'tool kit' reforms to help manage tight budgets
• N.J. school, local officials look for ways to cope with 2 percent tax cap
• Study finds majority of N.J. municipalities raised local tax levies by 5 percent or more