Program would reduce property taxes for residents who shop
by David Kilby, Special Writer
ALLENTOWN — Borough Hall in Allentown was filled last Tuesday when a presentation was given on a “Shop Local” property tax card program aims to reduce the local property tax bill of participants who shop local.
The program, a division of FinCredit, Inc., began in Marlboro a year ago as an incentive for people to shop in their local town.
By using a card issued by the program at local businesses that are enrolled, shoppers can earn credits that will reduce their property tax bill.
Each time a card is used a local participating businesses, 10 percent of the sale funds the program and goes back toward reducing the card owner’s property tax bill.
Of the 10 percent, 2.5 percent funds the program while the remainder goes back to taxpayers.
During his presentation at the Borough Council meeting on Oct. 29, Carmine DeFalco, president and CEO of FinCredit, said taxpayers in Marlboro have earned a total $20,000 in tax credit through the program. Other municipalities such as West Orange and Highland Park are also participating.
In addition, Plumsted Township also recently began exploring the incentive program.
Local businesses sign up for $10 per month, Mr. DeFalco added. He also noted that the card is not a money card or credit card, and said it can’t be charged with or borrowed against.
”We have an opportunity to encourage shopping locally and provide some tax reduction,” Mayor Stuart Fierstein said after the presentation.
”I think it’s a great program,” Councilman Daniel Wimer said. “I think it’ll help businesses.”
Ericka O’Rourke, owner of the Copper Frog Studio and Gallery in the Old Mill, asked what the cost to businesses would be for processing the card.
Mr. DeFalco responded that local business owners can either buy a $160 machine that can process the card, or process the card online with the account number provided by the program and a USB swiper.
Thomas Fritts, of Greenfield Drive, said there are many other similar programs out there that help local businesses, adding, “I do think other programs should be considered.”
Mr. DeFalco welcomed the idea to explore other options, but added, “You’re not going to find anything less expensive than this.”
Mayor Fierstein said the borough is only exploring Mr. DeFalco’s program, and affirmed that no final decision would be made at the meeting.
”I will welcome any other company that wants to give a proposal as well,” he said.
Bob Dutko, of Allen Drive, asked if local shops will get credit for out-of-towners who shop in Allentown.
Mr. DeFalco responded that business owners can distribute the card to whomever they want, and if a card is used by shoppers from out of town the shoppers will still get a rebate check.
”You have a small town. I would take this program and bring it to surrounding towns, so you can draw people here. That’s the bottom line,” he said.