New Property Tax Cap Closer to Reality, 07/08/2010

            Following Senate approval today (36-3) of a bill containing amendments presented in a conditional veto from Governor Chris Christie, the Governor and Legislature are closer to completing work on a new annual property tax cap.  Under the revised bill, the existing cap of 4 percent would be reduced to 2 percent, and allow for fewer exceptions than the current law provides.

            On Tuesday, July 6th, Governor Chris Christie moved the process toward the smaller, tighter cap by issuing a conditional veto for Senate Bill 29, passed by the Legislature on June 28, which provided a 2.9 percent cap but maintained several statutory cap exceptions.  The conditional veto, calling for the 2 percent cap with only exceptions for capital expenditures, debt service payments, pension and health benefits, and expenses incurred during declared states of emergency, as well as permitting local votes on increased spending above the cap, resulted from negotiations between the Governor and Senate leaders who announced a tentative agreement on Saturday, July 3.  Since then, Assembly Speaker Sheila Oliver has weighed in on the conditional veto and seems to be in agreement with the majority of its provisions.

            With Senate approval complete, the next step in the legislative process is for the General Assembly to consider the revised version of Senate Bill 29; if approved by the Assembly, it returns to the Governor for signing into law.  At this time, no voting session of the General Assembly has been scheduled.  However, with Speaker Oliver’s announcement of general support, occurring July 7th after the conclusion of an Assembly Democratic caucus in the State House, it is anticipated that a vote by the Assembly will be forthcoming shortly.