TRENTON – This morning, the state Senate approved a compromise plan that would cap future property tax increases at two percent per year by a vote of 36-3.
Democrats favored a cap plan that limited increases to 2.9 percent per year, with a number of exceptions falling outside the cap. Republican Gov. Chris Christie had originally called for a 2.5 percent cap imposed by a constitutional amendment. The two percent statutory cap represents a compromise between the two proposals.
If the state Assembly also approves the governor’s changes, future local budgets could not increase property taxes more than two percent per year unless voters approved the additional spending. Costs related to debt service payments, health care costs, pension costs and states of emergency would be exempt from the cap.
Following the passage of the bill, Senate Republican Leader Tom Kean said, “New Jersey residents will finally have some predictability and control when it comes to their property tax bill. Giving voters a choice will help prevent another family from moving out or another business from closing due to rapidly escalating property taxes.”
“This is a major step toward reining in runaway government spending,” Kean said.
