Towns Losing Millions in Property Tax Relief From Utility Taxes
NJ Spotlight recently reported how the New Jersey State budget will continue to divert funds from a pool of taxes collected from utilities. As noted in the article, available here, various statutes provide that the majority of the energy taxes be distributed to local governments for property tax relief. However, since 2008 more than $270 million has been used to balance the State budget.
Originally, local governments assessed and collected the taxes from the utilities to compensate towns for the benefits that utilities derived from their use of public rights of way. In the 1980s, the State began collecting the taxes formerly done by local governments, and the diversion of funds away from targeted programs such as this one has increased as the State seeks to balance its budget every year.
For more blog posts on the effect of property taxes in New Jersey, please see the following:
- Denver Mayor Hancock wants to ask voters to “De-Bruce” property taxes (denverpost.com)
- Assembly Dems say millionaires tax would generate $789 million for aid property tax relief (nj.com)
- North Dakota Considers Eliminating Property Tax (nytimes.com)
- Santa Clara County officials can’t withhold property tax money from San Jose (mercurynews.com)
- Majority Leader Greenwald on Middle Class & Seniors Property Tax Relief (gloucestercitynews.net)