Lawmakers in the Assembly passed a bill on Monday night approving $2 billion in property tax credits that could lower homeowners’ tax bills up to 20%. But some Republicans are calling the tax reform unconstitutional. The bill is due for a Senate vote on Monday. From The Jersey Journal:
Democrats are on the verge of giving a 20 percent property tax cut to most New Jersey homeowners, but Republicans yesterday questioned whether it violates the state constitution because it would base relief from the nation’s highest property taxes on income.
Assembly Republicans hinted they might file a lawsuit against the plan if it’s signed into law. The plan would give relief ranging from 10 to 20 percent to households who earn up to $250,000.
“The state constitution requires that all homeowners be treated equally under the property tax laws,” said Assemblyman Richard Merkt, R-Morris.
The Republican tax cut plan calls for amending the state constitution to guarantee the cut comes annually and giving a 30 percent cut for all households earning up to $200,000 and a 20 percent cut for all other households.
The Star Ledger reported “Governor Jon Corzine suggested homeowners are likely to see rising tax bills again next year, even with enactment of the reform measures.”
So just what does it all mean? Here’s a look at what you get and what you don’t.