Assembly Budget Committee Chairman Lou Greenwald says state's taxation structure may be broken
Assemblyman Louis Greenwald (D-Camden) wants towns to be able to set their own sales and income taxes, along with a number of other possible taxes and fees, so they can rely less on property taxesTRENTON — As mayors told of having to cut service “to the bone” to head off raising property taxes, Assembly Budget Committee Chairman Lou Greenwald said the biggest problem is the state’s “addiction” to that form of taxation.
“I think it is why people feel overtaxed in the state. I think it discriminates against seniors, I think it discriminates against young families,” said Greenwald at a property tax roundtable discussion this morning. “And regardless of what your age is and what you are, you overpay in New Jersey on that one spectrum of tax.”
Greenwald (D-Camden) wants towns to be able to decide by voter approval whether to set their own sales and income taxes so they can rely less on property taxes. The revenue from any other taxes would be used to offset property taxes. Last year he introduced several bills to lower several state taxes, including the sales tax from 7 percent to 6 percent, and instead allow towns to set their own taxes. But the bill did not move in either house of the Legislature.
“I think it’s a really interesting time to really question if it’s what we are spending on government that are driving property taxes so much more than other states, or is it really a system that should be looked at and a structure that may be broken?” said Greenwald.
Assemblyman Jay Webber (R-Morris) said Newark gets to set its own taxes in several instances but still faced painful public safety layoffs.
“I just want to point out, when we start talking about local options, it hasn’t cured the problem in Newark,” said Webber, who blamed the problem on school funding, affordable housing quotas and government spending in general.
Greenwald, however, said it’s unfair to judge local options by one city in the state that has many unique problems.
“Local options as an experiment should not be decided by one city in the state that has done it and may have management problems of its own,” he said.
The discussion came as three mayors, a county administrator and lobbyist for the AARP told of the hardships caused by property taxes.
Marilyn Askin, a lobbyist for the AARP, said it’s driving out seniors.
“We are in danger of losing what is called the Greatest Generation. We are in danger of losing them to states where they feel they can live with security and dignity,” she said.