LAWRENCE: Payments sought from tax-exempt organizations

By Lea Kahn, Staff Writer
   True to its word, Township Council has mailed letters to more than 50 nonprofit organizations and educational institutions seeking a voluntary contribution equivalent to 25 percent of their potential municipal property tax bill.
   The letters were mailed to the groups Monday, said Municipal Manager Richard Krawczun. He had suggested seeking voluntary contributions from the organizations — whose properties are tax-exempt — at Township Council’s June 6 meeting, and the council endorsed it.
   At that meeting, Mr. Krawczun told the council that the issue of tax-exempt organizations and the lack of property tax payments from them was mentioned by three township residents who volunteered to review the proposed 2012 municipal budget.
   Mayor Jim Kownacki pointed out this week that Lawrence Township is responsible for providing for public safety and public health, as well as maintaining municipal roads, buildings and parks. Residents, businesses and visitors benefit from those services, “as do the tax-exempt property owners within our community,” he said.
   The 90 parcels owned by the tax-exempt organizations are assessed at $287.6 million for property tax purposes. The properties would generate $2.5 million in municipal property taxes — enough to close the budget gap — but Township Council is seeking a 25 percent voluntary contribution that amounts to $625,000.
   The recipients of Monday’s letter include The Lawrenceville School, Rider University, religious groups, operators of group homes for the developmentally disabled, as well as the owner of the Eggerts Crossing Village affordable housing development.
   The American Legion Post 414, the Veterans of Foreign Wars Post 3022, HomeFront, the Educational Testing Service, the New Jersey State Patrolmen Benevolent Association Local 11, the Babe Ruth League Inc., and Special Olympics New Jersey, as well as the operators of age-restricted housing developments, also will receive a letter from Township Council.
   ”The time has come that we not only seek financial support from Rider University and The Lawrenceville School for voluntary contributions, but as a matter of equity, we request a voluntary contribution from all tax-exempt organizations in Lawrence Township,” said Councilman Greg Puliti.
   The Lawrenceville School and Rider University make contributions to the Lawrence Township Education Foundation and to the annual fireworks display, but they have been frequent targets because of their lack of property tax payments — which they are not required to make, under state law.
   Meanwhile, Mr. Krawczun said, over the past few years Lawrence Township has experienced significant reductions in state aid, a decline in miscellaneous revenue and a shrinking budget surplus fund that it would have used to offset property tax rate increases.
   And since 2010, the township has lost $160.2 million in ratables because of successful property tax appeals, he added. Lawrence Township also is responsible for refunding all of the successful tax appeals — including the full amount of school and county taxes — out of its own funds.
   As a result, Township Council has tightened its belt and residents have taken on the burden of higher property taxes, Mr. Krawczun said. Since 2008, the number of municipal employees has been reduced from 212 to 182 through a combination of retirements, attrition and layoffs. The township also has raised fees and cut down on capital spending.
   Now, tax-exempt organizations are being asked to consider providing a voluntary contribution to support municipal services — and to make those contributions by Oct. 31 so they may be factored into the preparation of the 2013 municipal budget.