ASSEMBLY REPUBLICAN LEADER ALEX DeCROCE

DeCROCE WRITES GOVERNOR SEEKING LEGAL OPINION
FROM ATTORNEY GENERAL ON PROPERTY TAX PLAN

Assures Corzine Assembly Republicans
Have No Intention of Bringing Legal Challenge

Assembly Republican Leader Alex DeCroce today sent the following letter to Governor Jon S. Corzine:

January 30, 2007

The Honorable Jon Corzine
Governor
PO Box 001
Trenton, NJ 08625

Dear Governor Corzine:

I know your desire to provide meaningful property tax relief as soon as possible is sincere. Accordingly, your personal intervention is now required to ensure relief efforts are not derailed because of enabling legislation that is constitutionally deficient.

Today, I have received a legal analysis that the property tax relief bill (A-1) approved by the General Assembly on January 29, 2006 with bipartisan support is subject to challenge by taxpayers because it runs afoul of the State Constitution's "uniformity clause" (Article VIII, Section I, Paragraph 1).

A-1 proposes a multi-tiered system of property tax credits for homeowners based on their personal income. Middle income families earning more than $100,000 would be ineligible for maximum credits because they are deemed too wealthy and not deserving of maximum credits. A family earning more than $250,000 a year would not be eligible for any property tax credit at all.

The "uniformity clause," as interpreted by two state Attorneys General in written legal opinions, requires that all homeowners be treated equally under the property tax laws. Since A-1 would treat homeowners falling within different income classifications differently - and provide reduced credits to middle class families and exclude many homeowners entirely - I believe the bill is constitutionally defective.

Fortunately, there is time to correct the problem. I believe those members of the majority party who are pushing A-1 have two alternatives:

1. They can submit to the voters this year an amendment to the State Constitution that permits a multi-tiered system of property tax credits for homeowners that is based on income levels - despite the restrictions imposed by the "uniformity clause," or

2. If Democrats absolutely refuse to consider a constitutional amendment - even though an amendment would prevent future Legislatures from tampering with the property tax credits year to year and force the relief effort to be fully fund on an annual basis - then they must amend A-1 to provide the same tax credit to every homeowner regardless of income.

Speaking on behalf of the Assembly Republican caucus, we hope you and legislative leaders see the wisdom of taking the best of both alternatives. We urge you to seriously consider our proposal to provide a 30 percent property tax credit for all households making $200,000 or less a year, 20 percent tax credit for everyone else and guarantee this relief will be permanent by submitting a constitutional amendment to the voters for approval. The constitutional amendment would address the issues raised by the "uniformity clause."

We estimate a 30% - 20% program would cost about $3 billion a year. At the outset, the program will be funded by the $1.2 billion now earmarked for rebates and $2.2 billion in recurring savings identified by Republican members of the Assembly Budget Committee in 2006. It will be sustained by tighter controls on state spending, local efficiency options contained in the Assembly Republican Blueprint for Property Tax Reform in 2005, and cost-cutting measures recommended by Republican members of the joint legislative committees that examined property tax reform in 2006.

I wish to emphasize in the strongest possible terms that Assembly Republicans are not raising this legal issue to block property tax relief. We have no inclination or desire to commence legal action and will not do so. We only wish to alert you that a problem exists and we should work together to solve it so taxpayers get the property tax relief they deserve and desperately need.

I am enclosing for your information a copy of the news release and legal analysis we made available to the press today. I urge you to request that the Attorney General review this matter and render a formal legal opinion so constitutional issues can be addressed and infirmities can be avoided. I look forward to working with you so that taxpayers will be guaranteed the relief we all support.

Sincerely,

Alex DeCroce

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For more information, contact:
Assembly Republican Leader Alex DeCroce / 973-984-0922
Assembly Republican Press Office / 609-292-5339