Senate leader takes aim at property tax relief
Four-point plan would double the New Jersey SAVER rebate program
By nicole c. vaccaro
Staff Writer
SState Senate President Donald T. DiFrancesco has declared his intent to initiate a four-point, $400 million property tax relief proposal.
The plan is called "Property Tax Relief Now" and was introduced to the Legislature on Friday.
"If all goes according to plan, this money will be given back to taxpayers as added relief for the next fiscal year," DiFrancesco said.
The New Jersey SAVER rebate program would be doubled, the homestead rebate program increased by 50 percent with a cost of living component added in, and the Legislative Block Grant program quadrupled, he added.
"This would be the most significant tax relief program in one year in state history without raising taxes," DiFrancesco said. "I want to accelerate the New Jersey SAVER rebate, enhance the homestead rebate program and send more dollars back to municipalities to help mayors and councils keep a lid on tax increases.
"And I’d like to see all of this done sooner, not later."
The four-point plan would double the New Jersey SAVER rebate next year for an average rebate of $500, and fully phase in the current five-year program by the fall of 2002.
The maximum homestead rebate would increase from $500 to $750, the first increase in the program in 10 years. Recipients of the rebate would also receive an annual cost of living increase for the first time.
The municipal aid block grant program would get a $100 million boost phased in over three years.
Many officials were on hand Friday to show their support of DiFrancesco’s proposed tax break, including Sens. Len Connors (R-9th District), John Matheussen (R-4th District) and Littell (R-24th District).
"The state’s economic prosperity has provided us with the financial capability to implement the Senate president’s proposal to increase the amount of money being sent back to New Jersey’s municipalities and citizens," Littell said.
Connors agreed by saying, "This property tax relief initiative provides a bright light of hope to senior citizens and hard-working families of New Jersey that we will reduce our state’s over-reliance on local property taxes."
Connors’ district in Ocean and Atlantic counties would benefit from DiFrancesco’s plan, as it is home to thousands of the state’s senior citizens and first-time home buyers.
Matheussen, sponsor of the New Jersey SAVER rebate law, said he fully supports DiFrancesco’s plan to accelerate the New Jersey SAVER program, with its full implementation taking place in the fall of 2002, one year ahead of schedule.
"Along with the rebate increases for seniors and the boost to the municipal aid block grant program, the acceleration of the New Jersey SAVER program provides the taxpayers of this state with a program that delivers real relief they can bank on," said Matheussen.
While the course is set for 2002, DiFrancesco has not ruled out the possibility of fully phasing in the New Jersey SAVER by next fall.
In fact, he has asked Littell, who chairs the Senate Budget and Appropriations Committee, to determine the feasibility of providing property taxpayers with a $600 rebate next year.
DiFrancesco has also requested that the Legislature review the existing local pension funding law to determine if an overhaul of the program might be able to extract some dollar savings without changing benefits.
As it now stands, the New Jersey SAVER program will return approximately $240 in rebates to nearly 2 million property taxpayers this fall. This number is expected to increase to $360 by 2001, $480 by 2002 and $600 by 2003.

