WASHINGTON, D.C. – September 25, 2013 – (RealEstateRama) — Assemblyman Ron Dancer has introduced cutting-edge property tax reduction legislation that will boost local economies while providing much needed tax relief to residents.
The bill permits municipalities to authorize property tax reward programs in which residents who patronize businesses in their towns receive property tax credits on their tax bills. Renters are also eligible and would receive a cash rebate instead of a tax credit.
“This is a ‘shop local’ program which is mutually beneficial for homeowners, renters and businesses who choose to participate,” said Dancer, R-Ocean, Burlington, Middlesex and Monmouth. “It has the potential to measurably reduce a homeowners’ property tax bill while bringing increased business to local shops without cost to the property taxpayer or the municipality. It’s a win-win for everyone and will, I believe, serve as a model for towns throughout the U.S.”
Dancer’s measure codifies current practice. Marlboro was the first town in the nation to implement the program which launched in 2012. During it’s first year, registered residents saved a collective $20,000 on their tax bills. Bayonne followed as the second town to participate.
Under the program, a property tax or “reward” card is issued to all township residents. Those who choose to enroll use the card when patronizing participating stores in their towns. A credit amount (10 percent, 15 percent, etc.), determined by the merchant, is applied to the transaction and a tax credit is applied to the customer’s property tax bill or, for those who rent, a cash rebate.
A qualified third party vendor is issued a license by the town to manage, tabulate and market the program. A participating business pays the amount of the rewards earned by customers to the vendor in addition to a separate administrative fee per transaction.
Dancer said his legislation ensures there is no government interference, which keeps costs down; ensures businesses are not subject to additional regulations, and authorizes the state to print the property tax credit information on a homeowner’s property tax bill. Under current law, only information authorized by the state may appear on local tax bills.
“This bill is specifically designed to keep government out of the process. Under previous administrations property tax relief programs were administered by the state which drove up costs,” explained Dancer. “Under this measure, government will not have its hand in the till. The rewards program will result in direct credits to homeowners or an annual check for renters.”
The 12th Legislative District lawmaker said he is confident of the program’s success, especially in New Jersey, which has among the highest property taxes in the nation.
“It’s time for government to think out of the box. We need to find innovative and responsible ways to reduce the property tax burden on our residents. This legislation will go a long way in achieving that,” said Dancer.
