Adjustments in tax revenue would generate money for property-tax relief, transportation improvements and maintenance of open spaces and historic sites
By: Courtney Gross
Although New Jersey residents will head to the polls on Nov. 7 to decide on a hotly contested U.S. Senate race as well as other congressional and municipal contests, they will also be asked to vote on three public questions that would redirect state funding, but not raise taxes.
If approved, the questions will allocate funding for property-tax relief, transportation improvements and maintenance of the state’s wildlife areas, parks and historic sites.
The first question asks voters to approve or reject a constitutional amendment that would affect the use of the one-cent increase in the sales tax that was approved earlier this year. As a result of the increase from 6 to 7 percent, and the contentious budget debate and government shutdown in the summer, half of the state’s revenue from the sales-tax hike will be allocated for property-tax relief if the constitutional amendment is approved.
This ballot question was a key component in the deal that broke the legislative stalemate over the budget and sales-tax increase that took effect in July. The sales tax has since been applied to a number of items not formerly taxed, including health club memberships, tattoos, parking and other goods and services. The extension of the tax to these items took effect Oct. 1.
According to estimates from the Office of Legislative Services, voter approval of the first ballot question would set aside about $625 million in sales-tax revenue for property tax relief in 2007.
A second question on the ballot would increase funding for state parks, a move that has been hailed by environmental groups across the state.
Since 1996, 4 percent of revenue raised by the corporate business tax has been earmarked for environmental programs each year. If approved, the constitutional amendment would redirect 15 percent of that revenue to develop lands for recreation and conservation purposes.
Lauded by environmental groups as a move to maintain open space in a state where little is left, the apportionment would boost funding for wildlife areas and parks in New Jersey to $15 million a year until 2015 and $32 million annually thereafter for both maintenance and capital improvement projects.
The emphasis on maintenance and improvement projects would reduce funding for water-quality programs, state-funded hazardous discharge cleanups and the underground storage tank inspection program. But if less than $20 million is available for the inspection program from other sources in any given year, funding would again be redirected to guarantee the inspections.
According to the state Department of Environmental Protection, backlogged repairs to state wildlife areas and parks will cost approximately $250 million. The state has 42 parks, 11 forests, three recreation areas and more than 50 historic sites and districts, according to the DEP.
The vote in the Legislature to place the question on the Nov. 7 ballot was unanimous.
The final ballot question would increase funding from the motor fuels tax toward improvements to the state’s transportation system, including repairs to highways and mass transit.
The tax, currently at 10.5 cents per gallon for gasoline and 13.5 cents per gallon for diesel fuel, dedicates 9 cents per gallon of its total revenue to the state transportation system.
If approved, the constitutional amendment would increase the apportionment to 10.5 cents per gallon. The increase would create an additional $78 million for the state transportation system, according to estimates from the Office of Legislative Services. The fund currently yields $468 million annually.
The question was also approved unanimously by the Legislature.

