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WEST MILFORD - State bill would keep some income tax in Highland
(by David M. Zimmer - Staff Writer - October 15, 2008)
WEST MILFORD - The Township Council this past Wednesday threw its support behind assembly bill A2768, which would give all taxpayers in areas with 95 percent or more land in the Highlands preservation zone the option of dedicating 10 percent of their annual New Jersey gross income tax to their town.
The bill, sponsored by Jay Webber (R-District 26) and co-sponsored by Marcia Karrow (R-District 23), would create the “NJ Highlands Tax Fairness Fund” to hold the dedicated tax money before it is redistributed to the municipalities to offset loss of development revenue. Instead of going to Trenton, the money dedicated by the taxpayers would be redirected to the municipalities.
Assembly bill A2768 was introduced in May and referred to the Assembly Environment and Solid Waste Committee, where it is being reviewed.
According to the bill, the restrictions of the Highlands Act fall hard on the municipalities where almost no development is permitted because they are prevented from introducing new ratables to control property taxes. Outside of this township, Kinnelon, Ringwood, Byram, Bloomsbury, Califon, Glen Gardner and Lebanon would also benefit from the proposed legislation.
“I feel every avenue that we can search to try and help the taxpayers in the township is worth it,” Councilwoman Marilyn Lichtenberg said during the Oct. 1 council workshop meeting. “I can’t see any harm in supporting this.”
Conversely, Councilman Robert Nolan said he was wary of supporting this bill. Diminishing the amount of taxes going to Trenton would probably decrease the amount coming back in aid for the school district as well as the municipality, he said.
However, the bill states, “This refunded amount could be used to offset property taxes or for general municipal purposes. Further, aid received by an eligible municipality from the ‘NJ Highlands Tax Fairness Fund’ would be in addition to any other state aid received by the municipality and could not be used to offset aid from another state program.”
Nolan added that supporting this bill could send mixed signals to Trenton as the council also plans to support legislation establishing water user fees to offset revenue lost due to Highlands restrictions.
Council President Joseph Smolinski said that a good government would look at all the options and that Nolan’s reservations on the bill were only providing a disservice to taxpayers.
“We have a commodity in this town that is vital to every other town in New Jersey,” Smolinski said. “This is just another avenue that we need to address to the taxpayers in the township.”
Smolinski said redirecting tax money back to the municipality could really help West Milford and some of its neighbors lower taxes and increase services.
“I am 100 percent for this and I hope it works out, though it’s probably going to get killed when it gets down to Trenton because of the majority,” he said.
Mayor Bettina Bieri agreed with Councilman Nolan, saying that asking for this funding would weaken the town’s support for a water tax. She said lawmakers in Trenton might construe supporting this bill as well as watershed aid and a water tax as greedy.
Even if the township receives the 10 percent from the state’s income tax revenue, the state would likely reduce funding in other areas to get that money back, Bieri said. She added that since the bill has little chance of making it, the township should simply support a water user fee, which has a much better chance of passing in Trenton.
“We probably will get a water tax, but it’s going to be a water tax that will benefit the rest of New Jersey,” Smolinski said. “But you know not one of them is asking for relief for West Milford.”
Nolan said West Milford’s representatives in Trenton are not supporting a water user fee to the detriment of the Highlands. However, Councilman Philip Weisbecker Jr. said the only reason they are not supporting water fee legislation is that it would not directly benefit West Milford or the Highlands.
In the Water Resource Lands Protection Act, bill A3215, sponsored by Assemblyman John McKeon (D-District 27), funds collected from Highlands’ water use would be used to purchase open space in watershed areas across the state for recreation and conservation.
Additionally, State Senator Bob Smith (D-District 17) is proposing SCR88, a constitutional amendment similar to McKeon’s bill, with the funding instead going to the state Green Acres fund for farmland preservation.
Other amendments proposed at the same time included ACR83, sponsored by Assemblyman John Rooney (R-District 39), and ACR51, sponsored by Assemblywoman Valerie Vaineiri Huttle (D-District 37). ACR83 would dedicate the approximately $15 million estimated to be generated by a water tax to purchase property in the Highlands and Pinelands, while ACR51 would use the funding for water quality and supply projects.
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