SCHEPISI BILL PROTECTS PROPERTY TAXPAYERS WHEN BUSINESS LEAVE

When Companies Vote With Their Feet, Property Taxpayers Pay Too High A Price

This week, Assemblywoman Holly Schepisi introduced legislation to lessen the impact on property taxpayers when big businesses pack up and leave.

WASHINGTON, D.C. – May 15, 2015 – (RealEstateRama) — “Property taxpayers shouldn’t be socked to make up the difference when big companies leave New Jersey over higher taxes and costs,” said Schepisi. “We have to put the breaks on these built in tax hikes to protect the residents and businesses that are staying to help us rebuild our economy.”

Schepisi’s bill (A-4402) would allow municipalities to apply for short-term transition aid when key businesses that provide significant tax ratables close to lessen the impact on property taxpayers.

In a letter sent to Division of Local Government Services Director Timothy Cunningham, Schepisi called attention to the tax loss in Montvale after the closing of Barr Laboratories. Schepisi requested the division “…grant Montvale transitional aid to assist it as it adjusts to this loss in ratables…Without assistance, Montvale residents will experience a significant property tax increase due to the devaluation of the Barr Labs property.”

Memorial Sloan Kettering Cancer Center is acquiring the Barr Laboratories facility and it is estimated the town will experience a $750,000 loss in property tax revenue, which will only be partially offset by a payment in lieu of taxes, when the transaction is finalized as a result of Sloan’s tax-exempt status.

In addition to Montvale, Schepisi also identified the closing of Pearson Education in Upper Saddle River, and Hertz and Sony in Park Ridge as other examples of towns that face a similar loss in ratables.