A circuit breaker acts to prevent the flow of electricity from reaching unsafe levels.
Lt. Gov. Kim Guadagno wants to implement a similar mechanism for New Jersey’s highest-in-the-nation property taxes.
Her property tax ‘circuit breaker’ unveiled Wednesday morning would kick in whenever “the school portion of a homeowner’s property tax liability exceeds 5% of their yearly household income,” in which event “[t]he homeowner will receive a direct credit on their tax bill for any amount exceeding the 5% threshold.” You can click here for the position paper.
The Guadagno campaign, competing for this year’s N.J. GOP gubernatorial nomination, estimates that the average savings would come in around $1,000 annually per household. The proposed plan only applies to primary residences and there’s a $3,000 cap, too.
The estimated cost to the state? $1.5 billion which the LG says she’ll make up elsewhere through a combination of cutting waste, tinkering with aid to over-funded school districts, and “additional revenue growth to the state.” Her plan also mentions reforming sick pay abuse, encouraging consolidation of services and tackling troubled school funding formula as necessary parts of a future global solution but avoids specifics for now.
“By ensuring that homeowners aren’t forced to pay school taxes in excess of 5% of their household income,” explained Guadagno in a statement accompanying the plan’s release, “New Jersey families won’t have to leave the state due to untenable property taxes. Families, seniors and the middle class will finally have certainty they’ll be able to afford to live in New Jersey.”
We’ll take a close look at the fresh-off-the-presses plan and give you our take very soon, Save Jerseyans.
What’s undeniable is the need to do something… fast. New Jersey property tax bills cumulatively increased by $700 million in 2016 when the average New Jersey property tax bill hit $8,549.
The national average is only $3,296.