State Budget Hearings Underway

State Budget Hearings Underway
In preparation for the Fiscal Year 2010 budget process, the New Jersey Senate and Assembly budget committees continue to meet while the remainder of the Legislature is on recess. The New Jersey Constitution mandates that a balanced budget be in place by July 1.
During this week's budget hearings, the nonpartisan Office of Legislative Services (OLS) revealed that state revenue will be $605 million less than what Governor Corzine projected last month in his budget address. OLS also released estimates that indicate the realty transfer fee will produce less revenue in fiscal years 2009 and 2010 combined than it yielded in 2006; the last year the fee was increased.
Reacting to the new revenue projections, NJAR® issued a press release explaining how the downturn in realty transfer fee collections shows that high taxes on real estate have a detrimental impact on the state economy.

Call for Full Restoration of the Property Tax Deduction

In his budget address on March 10, 2009, Governor Jon Corzine called for a one-year suspension for all non-senior households, regardless of income, to deduct property taxes from their state tax filings. Reacting to overwhelming public angst, Governor Corzine recently adjusted his budget plan to include the restoration of the property tax deduction for senior citizens and households earning up to $150,000.
Although the partial restoration of this critical deduction is a step in the right direction, NJAR® still needs your help! Governor Corzine still has plans to eliminate property tax rebates for everyone except senior citizens and households who make less than $75,000. Given current economic conditions, this is the worst possible time to propose any legislation that undermines the basic foundation of homeownership.
Take action by participating in NJAR®'s new letter-writing campaign calling for the full restoration of the property tax deduction. Additionally, encourage your clients, friends and family to send a public letter to lawmakers.