Measure would cut the current 4 cap in half, eliminate many loopholes that allow municipalities to exceed it
The vote was 36 to 3, with three senators – Ronald Rice (D-Essex), Shirley Turner (D-Mercer) and Bob Smith (D-Middlesex) -- voting against it. One senator, Nia Gill (D-Essex) was absent.
“New Jersey residents will finally have predictability and control when it comes to their property tax bill,” said Senate Minority Leader Tom Kean, Jr. (R-Union).
Democrats who voted against the cap said the Senate should first tackle controlling expenses that make it hard for towns to stay within it. Gov. Chris Christie has proposed a 33-bill “toolkit” aims to do that through allowing towns to opt out of the civil service system and capping sick leave payouts, among other reforms. Democratic leaders say they plan to vote on it by the fall, though not necessarily in its current form.
State Sen. Shirley Turner (D-Mercer) said her district’s towns could not stay within the 2 percent cap and maintain quality schools and a good quality of life.
“I think we’re going to rue the day that we established this so-called 2 percent cap,” she said. “I’m all for 2 percent when it comes to low fat milk, but not when it comes to this bill today.”
The deal is the result of months of wrangling over a constitutional 2.5 percent cap Gov. Chris Christie proposed almost four months ago that would have exempted only debt service payments. An alternative bill authored by Senate President Stephen Sweeney (D-Gloucester) that would lower the tax cap by statute but leave in place most of the 14 current exemptions both houses of the Legislature last week. Democrats wanted it done by statute because it is easier to change than the state constitution.
Under a compromise reached between Sweeney and Christie during in a three day special legislative session, Christie conditionally vetoed Sweeney’s bill to lower the tax cap to 2 percent and leave in place four exemptions for health care costs, pension costs, debt service and states of emergency. Voters could also allow their town to exceed the cap by a simple majority in a referendum.
“I don’t think (Christie) can run around claiming he won. I can’t run around claiming we won. The taxpayers own. and it being a statutory cap, we can always change when we make mistakes,” Sweeney said after the vote.
The conditional veto now moves on to the Democrat-controlled Assembly, where leaders said Wednesday they support the bill and could vote on it as early as next week.
Related coverage:
• N.J. local officials worry about fate of 2 percent property tax cap 'tool kit'
• N.J. mayors tell Assembly panel 2 percent property tax cap will burden towns
• N.J. Assembly Speaker announces official support for 2 percent property tax cap
• Gov. Christie pushes Democratic lawmakers to pass bills coping with property tax cap
• N.J. lawmakers' plan for 2 percent property tax cap inches closer to reality
• Gov. Christie issues conditional veto of property tax bill in deal with N.J. Dems