On the heels of the tax hike, New Jersey is considering legislation that would impose an additional $30 per year in property tax on businesses that operate on undeveloped land, as well as additional fees on the purchase of residential properties.
The state has been considering the proposal since April.
The proposal is expected to go before the Legislature this session.
“It’s very, very bad policy,” said New Jersey Democratic Assemblyman Bill DeSantis, who represents the area of Newark where the proposed law would be enacted.
“You want to protect the environment, you want to create jobs and you want people to stay home.
So you want the tax to go down.”
New Jersey’s governor is proposing to impose a 1.8 per cent property tax increase on all property owners, up from 1.4 per cent.
The proposed rate increases are set to begin on Jan. 1, 2020, but could be retroactive to Jan. 31, 2021, the governor’s office said.
The proposed new property tax would apply to residential properties in the city and county of Newark, as long as they have been constructed in the past three years, the bill says.
It would apply the tax at the time of the construction of a new residential unit, not at the point of sale, according to the legislation.
The state tax would be based on the current value of the property, including any improvements, but the governor said it would be calculated based on a person’s income.
Property owners with annual income between $150,000 and $300,000 would pay the increased tax.
Those with income between that level and $400,000 could not pay the tax, the legislation states.
DeSantis is also sponsoring legislation to increase the state sales tax from 6.9 per cent to 9.5 per cent on taxable incomes up to $400 a year.
It would be applied to all residential and commercial properties.
The proposal to increase property taxes in the Garden State also has support from New Jersey’s Republican Governor.
“It was a good idea when I first came here in ’92, but I’m tired of it,” Governor Chris Christie said in a statement Tuesday.
“I will veto any property tax hike.”
Christie said he would also veto any new property taxes that are approved in his state.