HACKENSACK, N.J. (CBSNewYork/AP) – New Jersey Gov. Phil Murphy says property taxpayers would get a $125 refundable credit on their income taxes under a plan he’s proposing that includes imposing higher tax rates on millionaires.
Murphy in May first proposed using better-than-expected revenue proceeds this fiscal year to fund $250 million in property tax relief. The proposal hinges on lawmakers also increasing income tax rates on those making more than $1 million, reports CBSN New York’s Meg Baker
Murphy offered details of his plan for the first time Monday in Hackensack.
“It is clear tax fairness equals property tax relief, but this direct property tax relief simply cannot happen unless we find the courage to ask the wealthiest among us to pay their fair share,” he said.
Gov. Murphy Announces Tax Fairness and Property Tax Relief
The relief Murphy proposes is just a fraction of the state’s $8,767 average annual property tax bill.
The millionaires’ tax was a campaign promise Murphy didn’t get passed last year, and political experts say he’s got a tough road ahead to get it passed this year. He’s lacking the support of not only Republicans, but of his fellow Democratic leaders in the senate and assembly.
“He’s put the legislature in a real political conundrum,” said political expert Jim McQueeney. “The senate is not up for re-election, The assembly, all 80 members, are up for re-election.
“Essentially what the governor is saying is, ‘Look, assembly members, you who are up for re-election in November, do you want to go back and try to get re-elected and tell people that you voted against a quarter of a billion dollars in property tax relief,” he said. “Is that what you want to go back and tell voters? I don’t think so.’”
It’s not clear the proposal will go anywhere in the Democrat-led Legislature. Senate President Steve Sweeney has already said he’s opposed to raising taxes.
(© Copyright 2019 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)