Kim Guadagno: Phil Murphy's Refusal To Embrace 2% Cap "Disqualifying," Will Lead To Higher Property Taxes For New Jersey

West Long Branch, NJ – Kim Guadagno today blasted Phil Murphy for refusing to say if he will extend the interest arbitration cap, which is set to expire at the end of the year. Not extending the cap will return New Jersey to the days of unchecked and out-of-control property tax increases.


Murphy told Politico NJ that "he has not decided whether he supports extending a soon-to-sunset law that effectively caps increases in local police and fire salaries to 2 percent." 

"Now we know why Phil Murphy hasn’t released a plan to reduce property taxes: it’s because he wants to dismantle the property tax cap and return to the days of unchecked property tax increases like under Jon Corzine," said Kim Guadagno. "This is a disqualifying position to take for anyone who wants to be governor of New Jersey, which already has the highest property taxes in the nation." 

Before the cap was instituted in 2010, property taxes in New Jersey increased at an unsustainable rate. Since 2010, property tax increases have slowed as towns and municipalities have been better able to control costs.
 

Property Tax Increases By Year
 

2002 – 7.0%

2010 – 4.0%

2003 – 7.6%

* 2% cap passed

2004 – 6.5%

2011 – 2.5%

2005 – 6.5%

2012 – 1.6%

2006 – 6.9%

2013 – 1.7%

2007 – 5.8%

2014 – 2.3%

2008 – 4.9%

2015 – 2.0%

2009 – 3.6%

2016 – 2.5%


Guadagno added, "Goldman Sachs Millionaire Phil Murphy may be able to afford to pay higher property taxes, but working families in New Jersey cannot. That’s why I firmly stand with mayors across the state who want to see the interest arbitration cap extended as we work to deliver middle class property tax relief."

Despite polls showing property taxes as the top issue for voters in this election, Phil Murphy hasn't released a plan to lower the property tax burden on New Jerseyans. According to the Asbury Park Press, "To date, most of [Murphy's] proposals call for increasing spending... He has said nothing about actually reducing the tax burden... All those proposals will end up costing taxpayers more."

Kim Guadagno has pledged to lower property taxes during her first term as governor or she won't run for a second. Guadagno would extend the 2% cap and also impose a middle class property tax relief program, which will actually lower the property tax burden on New Jersey families. Her plan caps school taxes to 5% of household income, saving middle class families and seniors up to $3,000 a year on their property tax bill.

Murphy's comments come after he pledged to raise taxes by at least $1.3 billion if elected; however, given the $75 billion in promises and proposals he's embraced throughout the campaign, it's clear that is just the start. To date, Murphy has proposed higher income, sales, business and death taxes.