Panel urges state to think ‘SMART’

Bill would shift 90 percent of school taxes to state surcharge.

By:Vanessa S. Holt
   FLORENCE — The Township Council passed a resolution Feb. 19, urging the governor and state Legislature to consider reforming the property tax system used to fund public schools in the state.
   The resolution supports introduction of the "SMART" (Save Money and Reform Taxes) bill proposed by the New Jersey Coalition for Property Tax Reform, a grass-roots organization.
   The bill would shift 90 percent of school taxes paid by property owners to a state school tax surcharge based on income.
   The resolution stated the net effect of that tax shift would reduce the tax budget of 90 percent of middle income homeowners by $1,500 annually.
   Mayor Michael Muchowski said the township is simply adding its voice to the ongoing discussion at local and state levels about possible alternatives for funding schools.
   "It doesn’t hurt to look," he said. "We’re all in the same boat together."
   The resolution states that New Jersey has the highest property taxes in the nation, utilizing more than half of its property tax revenue to fund schools, and cites a December 2002 poll conducted by Quinnipiac University in Connecticut which indicted that 74 percent of New Jersey voters would favor an income tax increase over an increase in property tax.
   Property taxes in many local municipalities are rising because of new school construction needed to house a growing student population.
   Voters in the Bordentown Regional School District approved a $37.4 million bond referendum last year and the Northern Burlington School District approved a $28.7 million referendum for school construction in 2000.
   Bordentown Regional School District Superintendent John Polomano said the Board of Education in his district has passed resolutions supporting the bill, but state legislation will be required before any progress is made with the idea.
   "It’s encouraging to see municipalities are doing this as well," said Mr. Polomano. "There’s a stronger call for a convention to deal with it. I’ll be happy when I finally see a constitutional convention and an amendment to the constitution."