Guadagno's Plan Cuts Property Taxes Now While Pursuing Long-Term Reforms
By tying school taxes to 5% of household income, New Jersey's middle class families will see lower property taxes now.
Kim Guadagno released a detailed plan to deliver immediate property tax relief for middle class families and outlined long-term reforms to lower property taxes for all New Jerseyans, including fixing the school funding formula and ending sick pay abuse.
Guadagno's plan is the only plan that will cut property taxes immediately for the middle class and those who are being squeezed by high property taxes. (Star Ledger, 4/24/2017)
Guadagno would impose a new property tax "circuit breaker" to limit property taxes New Jersey families pay. Guadagno believes New Jerseyans shouldn't have to pay more than 5% of their household income towards school taxes, the main driver of our state's high property taxes. If school taxes get too high, Guadagno's 'circuit breaker' kicks in and households stop paying. The credit would appear directly on a homeowner's property tax bill and actually lower the amount they pay out of pocket if school taxes exceed 5% of household income. The state would chip in the cost of the credits to the local school districts with additional state aid so schools don't lose funding. (NJ Spotlight, 4/24/2017)
Guadagno has outlined specific proposals to pay for her property tax cut plan, including billions in specific savings like auditing state government and lowering health care costs favored by fiscal experts in both parties. (Star-Ledger, 4/20/2017)
Guadagno's property tax 'circuit breaker' concept is viable and used in other states. Hawaii, Illinois, Maine, Massachusetts, Oklahoma and West Virginia already have a similar circuit breaker program. (Star-Ledger, 4/20/2017)
Guadagno's plan has been endorsed by local and state officials across New Jersey:
- The plan is favored by Fair Lawn Mayor John Cosgrove, a Republican whose residents stand to save an average of $1,200 on their property tax bills under the Guadagno plan: "Lieutenant Governor Guadagno's plan shows she is serious about providing real relief to struggling homeowners," said Fair Lawn Mayor John Cosgrove. "She has outlined specific ways to save billions of dollars to pay for this plan without harming our schools. This is the kind of thinking we need in Trenton to make our state more affordable for everyday working families.”
- "Lowering property taxes is the number one challenge facing New Jersey," said Assemblyman Anthony Bucco. "It is a wet blanket on our economy and drives seniors and families to move to other states, where it is more affordable to live, work and raise a family. I applaud the Lieutenant Governor for releasing a detailed plan that not only will deliver long-term property tax relief for New Jerseyans by reforming the school funding formula, but target immediate relief to the families who need it most now.”
- The plan is also favored by Senator Diane Allen (LD7), Mayor Carlos Rendo of Woodcliff Lake Mayor John Glidden of Closter, Mayor Mike Ghassali of Montvale, Mayor John Krenzel of South River and Mayor Kennedy O’Brien of Sayreville.
- The liberal-leaning think tank New Jersey Policy Perspective told the Observer that "Guadagno’s proposal is on the right track" and that other states have a 'circuit breaker' policy in place.