NJ Tax Reform Moves Slowly

In February, the State Assembly approved property tax relief in the form of a “caps/credit” bill that will issue a 20% state paid credit on most property tax bills. Tied with that bill, was a 4% “cap” on municipal spending. The credits, which will vary by household, will cost the state more than $2.3 billion. This will be paid from half of last summer’s sales tax increase and a reduction of the current property tax rebate program. Governor Corzine approves the bill as part of the state budget overhaul.