California Prop 13 In NJ Now
"Background
On June 6th, 1978, nearly two-thirds of California’s voters passed Proposition 13, reducing property tax rates on homes, businesses and farms by about 57%."
http://www.californiataxdata.com/pdf/Prop13.pdf
Please read the link above, a lot of good information.
A LOT of good features for the property owner. I would love to see this implemented in NJ, anyone else?
iJay High property taxes are a real burden for senior citizens who wish to stay in their home but have a fixed income.
Municipalities have had to raise them whenever the state kicks the can down the road.
I say, go for it.
Andy Loigu They're a burden for everyone. We don't need schools that are like country clubs. They have everything but weekly polo matches, these days.
JerseyWolf I'm all for getting taxes under control anywhere let alone NJ. But did you actually read over what that proposition says? What has happened in California doesn't seem to be so perfect for NJ. We already have the 2% cap so that's nothing new. (and how well has that really worked) But that prop puts the tax rates in the control of the state instead of local government. California may have local governments out of control, but that's not the situation here. In addition, look around and tell me what municipality does revaluation every year like in the prop?
For NJ, that prop would miss the big picture. Warren in general has far less problems with local taxes compared to Morris or Somerset. Hackettstown spending is under half the limit but look at the school taxes. That's where we're really getting hit and that Calif. prop won't do a thing about it. The state has been mandating school spending left and right without funding it. Wealthier areas can afford that, urban areas are subsidized, but the small rural regions are strapped.
GC I agree GC. In addition, use of technology within the public school systems is an area that needs to be explored and developed in an effort to reduce spending, especially at the middle and high school levels. I have recently heard of a private high school program in the area which has cut their costs considerably doing just that while students still attend school for the day. It is the first year of the program and I am sure there will be some areas to work on, but it looks promising.
Spring Fever It will be good to have this debated and to give the voters a say.
Due to my age, I'm looking at it from the senior citizen point of view, but I'm willing to listen to all points of view. Right now, my reaction is that it is good for the public to have their say.
The root cause of NJ tax problems is that we spend too much for our services. I noted the NJ $2M per mile for roads versus the low of $39K per mile from a few states. In education, NJ spends $18K per student, avg is 11K, however we do rank at the top in performance. Only NY spends more at $19K Low spending is $6K And the next state down from us spends $16K and 32 states spend between ((9K - 12K).
Note that CA school performance plummeted post Prop 13. Just a note.
We spend too much for services, plain and simple and the metrics are right in front of our faces. You can just run the litany of services, compare to national averages, not best in class even, and simply gag on the results. Our state leaders are ineffective purchasing managers, business managers, financial managers, etc.
For taxes, NJ is unique in relying on property tax at the major funding source providing 50% of our tax revenue. We are unique in this anachronism. Average is 35% and that includes NJ.... This affects our seniors and is a progressive hit to the wealthy.
So sure I favor a rollback and cap, however, even in CA, they had to make up the lost revenue with other taxes like their 8.25% sales tax so it's not like you will necessarily have extra money in your pocket (since we still spend too much for services). Other issues include the fact that values are reassessed on sale. This has led to a slowdown is CA real estate since people don't want to move up in taxes. Also a weird assessment where the house you lived in for 20 years is valued at x and the same house next door that just sold is 2x.
But this is nits n lice, we could just as easily slash the property tax rate by 50% and leave the home values where they are, and cap the rate increases. Still would have to raise other taxes but a high sales tax is closer to a usage tax, helps seniors, and is more fair IMHO to rich and poor alike than a high property tax, but perhaps a little harder on the poor. Add in some value-added luxury taxes and the poor can be relieved as well. Raise the gas tax, charge $100K for each gun permit (just kidding), increase numerous fees, it's easily workable, 49 other states have done better than NJ at it.
But lower the property tax and maybe slow the migration of retirees. I know I would like to stay but can make thousands on property taxes by leaving. Won't be buying that much so could care less where the sales tax is, won't be doing much needing fees, will have all my luxuries, so the only new tax that will cost me is the $100K gun permits (kidding again).
strangerdanger Yeah, I'm not planning on retiring in NJ either, but I will have to stick around and be a caregiver for my mom, who is Yogi Berra's age --- GOD BLESS HER.
Anybody happy with their tax increases? Check out the percentage increase for the schools, insane!
Commenting is no longer available.