Bill Text: NJ SCR56 | 2012-2013 | Regular Session | Introduced

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Bill Title: Amends State Constitution to dedicate annual revenue derived from tax rate of 1% imposed under sales and use tax for property tax reform, with one-half dedicated exclusively for public school property tax relief for seniors.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-01-23 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [SCR56 Detail]

Download: New_Jersey-2012-SCR56-Introduced.html

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SENATE CONCURRENT RESOLUTION No. 56

STATE OF NEW JERSEY

215th LEGISLATURE

 

INTRODUCED JANUARY 23, 2012

 

 

Sponsored by:

Senator  DIANE B. ALLEN

District 7 (Burlington)

 

 

 

 

SYNOPSIS

     Amends State Constitution to dedicate annual revenue derived from tax rate of 1% imposed under sales and use tax for property tax reform, with one-half dedicated exclusively for public school property tax relief for seniors.

 

CURRENT VERSION OF TEXT

     As introduced.

  

A Concurrent Resolution proposing to amend Article VIII, Section I, paragraph 7 of the Constitution of the State of New Jersey.

 

     Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):

 

     1.    The following proposed amendment to the Constitution of the State of New Jersey is hereby agreed to:

 

PROPOSED AMENDMENT

 

     Amend Article VIII, Section I, paragraph 7 as follows:

     7.    a.  No tax shall be levied on personal incomes of individuals, estates and trusts of this State unless the entire net receipts therefrom shall be received into the treasury, placed in a perpetual fund designated the Property Tax Relief Fund and be annually appropriated, pursuant to formulas established from time to time by the Legislature, to the several counties, municipalities and school districts of this State exclusively for the purpose of reducing or offsetting property taxes. In no event, however, shall a tax so levied on personal incomes be levied on payments received under the federal Social Security Act, the federal Railroad Retirement Act, or any federal law which substantially reenacts the provisions of either of those laws.

     b.    There shall be annually credited from the General Fund and placed in a special account in the perpetual Property Tax Relief Fund established pursuant to this paragraph, which account shall be designated the Property Tax Reform Account, an amount equal to the annual revenue derived from a tax rate of [0.5%] 1% imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), as amended and supplemented, or any other subsequent law of similar effect, which amount shall be appropriated annually by the Legislature exclusively for the purpose of property tax reform; provided however, that one-half of that amount shall be appropriated annually by the Legislature exclusively for the purpose of providing public school property tax relief for residents of the State who are 65 years of age or older.

(cf: Art.VIII, Sec.I, par.7 amended effective December 7, 2006)

 

     2.    When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each
county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.

 

     3.    This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

     There shall be printed on each official ballot to be used at the general election, the following:

     a.     In every municipality in which voting machines are not used, a legend which shall immediately precede the question as follows:

     If you favor the proposition printed below make a cross (X), plus (+), or check (a) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the word "No."

     b.    In every municipality the following question:

		INCREASES DEDICATION FOR PROPERTY TAX REFORM TO AN AMOUNT EQUAL TO A TAX RATE OF 1% UNDER THE STATE SALES AND USE TAX AND DEDICATES HALF OF THAT AMOUNT FOR PROPERTY TAX RELIEF FOR SENIORS
	YES	Do you approve the amendment of Article VIII, Section I of the Constitution of the State of New Jersey, to provide for the annual dedication and annual appropriation of an amount equal to the annual revenue derived from a tax rate of 1% imposed under the New Jersey Sales and Use Tax, exclusively for the purpose of property tax reform, with one-half of that amount annually appropriated exclusively for the purpose of providing public school property tax relief for seniors, through a special Property Tax Reform Account established in the constitutionally dedicated Property Tax Relief Fund?
		INTERPRETIVE STATEMENT
	NO	This constitutional amendment doubles the amount of sales and use tax revenue annually dedicated to a special account in the Property Tax Relief Fund and annually appropriated for property tax reform, with one-half of the amount dedicated to be used exclusively for the purpose of providing public school property tax relief for seniors of 65 years of age or older.

STATEMENT

 

     This constitutional amendment raises from 0.5% to 1% the amount of revenue derived from the New Jersey Sales and Use Tax Act to be annually dedicated in a special account in the Property Tax Relief Fund and annually appropriated for property tax reform.  The amendment dedicates one-half of the increased dedication exclusively for the purpose of lowering the property taxes funding public schools that seniors pay. 

     Senior citizens, many of whom are on fixed incomes, bear an unfair burden for public school funding through property taxation, as most have no children in the public education system.  The average annual property tax bill for New Jersey citizens is about $7,000.  Close to 600,000 senior citizens pay property taxes.  Thus, with a dedication of approximately $600 million from the sales tax, this bill could potentially provide a property tax reduction of about $1000 to the average senior.  This bill provides public school property tax relief that will allow seniors to keep their homes and may incentivize them from retiring out of state.