Steve Sweeney Wants to Close Property Tax Loophole
New Jersey Senate President Steve Sweeney wants to close a loophole that allows local officials to bypass a 2 percent annual cap on property tax increases.
The Democrat on Monday introduced legislation aimed at stopping municipalities from reclassifying certain services, such as trash collection, as user fees. Those fees don't count against the 2 percent cap under current law, which lawmakers approved in 2010.
The previous cap was 4 percent.
Sweeney says that practice is disingenuous and detrimental to property tax payers. The Senate president says his legislation would make it clear that shifted services are still subject to the cap.
Two municipalities, Lawrence and Medford, will hold votes on Tuesday asking taxpayers to approve raising taxes above the cap. It's unclear when the legislation will be debated.
(Copyright 2012 by The Associated Press. All Rights Reserved.)