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FROM THE MAYOR: Efforts needed to stop state skimming of local revenue

by Mayor Kelly A. Yaede
As your mayor, I am always mindful of your tax dollars. For that reason, I have renewed my efforts to end a state government practice of misusing your tax dollars that should be returned to your municipal budgets in order to directly offset property taxes.
   Originally, taxes on gas and electric utilities were collected by host municipalities, yet over the years, state government made itself the “collection agent” for the revenue, which was promised to be returned to municipal budgets to offset property taxes. The process is similar to how the municipal government collects taxpayers’ tax payments for the public school district, county government and fire districts, even though the revenue belongs in those separate entities’ budgets.
   Over the years, state government began to “skim” more of the revenue instead of returning your tax dollars to your municipal budget to offset your property taxes.
   Since 2010, Hamilton Township taxpayers have experienced a nearly $5 million annual reduction in returned revenue (energy receipts and Consolidated Municipal Property Tax Relief Act revenue) amounting to nearly $20 million total loss over that time. However, over that same period of time, if state government followed a 1999 law it enacted, Hamilton taxpayers should have seen over $60 million returned to offset property taxes. Even this does not represent the full amount of money owed to your municipal budget.
   If state government only returned the annual $5 million skim it has taken from Hamilton’s taxpayers since 2010, it would allow for a tax rate reduction. Today, Hamilton Township is spending less than 2011 levels, conducts multiple shared services and has reduced the number of full-time government positions by over 11 percent since 2008.
   I have pledged to work in a bipartisan manner with others, such as local state legislators representing Hamilton, who have enacted various bills to help return energy receipt revenue to local budgets to directly offset property taxes. Unfortunately, their efforts have not been successful in returning your tax dollars.
   Last session of the New Jersey state legislature, a bill intending to increase energy tax receipt distributions to property taxpayer’s municipal budgets over five years to restore prior energy tax and CMPTRA reductions was approved by both houses of the state legislature, before being vetoed by the Governor. Another bill, to require energy tax receipts to be paid directly to municipalities was overwhelmingly approved by the state General Assembly.
   I propose matching Senate and Assembly concurrent resolutions for a state constitutional amendment that would require bringing the measure back to the voters of New Jersey. Since at least two bills have received overwhelming, bipartisan support in the state legislature, it would seem that there is no reason why matching concurrent resolutions to accomplish the same goals would not garner the same level of support. Therefore, a gubernatorial veto could be bypassed, just like it was for increasing the state minimum wage in November.
   In that case, if state government will not end its “skim” of this revenue, which was always intended to directly offset property taxes through taxpayers’ municipal budgets, maybe it is time for the people to end this state government practice. If faced with the decision of either allowing the state government to continue skimming upwards of $404 million a year to plug holes in the state budget for more state spending versus returning their hard-earned money to directly offset their municipal property taxes, I believe that the public’s voice will be resounding.
   In the end, my objective is to return this revenue to benefit the property taxpayers of Hamilton Township that I was elected to serve. I will continue to work in a bipartisan manner to do so.
   As always, it is my honor to serve as your mayor.