Wednesday, April 20, 2016

5 takeaways from a conversation on New Jersey's property taxes

MIDDLETOWN - New Jersey's property tax system is broke, and it's making taxpayers feel the same way.

"We're paying on average $11,000. Our taxes went up by 35 percent within the last five years," said an exasperated Adam Seyhan, a resident of Equestra, a 55 and older community in Howell.

About 60 people like Seyhan came to Brookdale Community College on Thursday to speak their minds about the state's most consistently frustrating issue. The free event was part of the "Community Conversations" series jointly sponsored by Brookdale and the Asbury Park Press.

It was moderated by New Jersey Assemblywoman Amy Handlin, R-Monmouth, who said only a grassroots movement could compel lawmakers to make meaningful changes.

"What we need is people who are willing to work together on some shared priorities that can help address this crisis," Handlin said. "I can tell from my experience in Trenton and my experience in Freehold ... a lot of things change in the world of politics and government, but what never changes is that citizens are who brings about major change."

EXCLUSIVE: Check out the APP's award-winning series on the property tax crisis

Joining Handlin were Press reporter Susanne Cervenka; Marc Pfeiffer, senior policy fellow and assistant director of the Edward J. Bloustein School of Planning & Public Policy at Rutgers; Middletown Mayor Gerry Scharfenberger; and John Donnadio, executive director of New Jersey Association of Counties.

Here's what people were saying at Thursday's meeting:

1. It was an older crowd, and many of the residents talked about the danger that property taxes presented to their ability to stay in their home.

"To say to somebody who is now in retirement age that you cannot live in the home you worked for your entire life," said Jack Baron, a retired accountant from Jackson. "Am I crazy? Isn't there something wrong with that? Shouldn't all taxation come from income?"

New Jersey Assemblywoman Amy Handlin moderates a panelBuy Photo
New Jersey Assemblywoman Amy Handlin moderates a panel discussion on property taxes Thursday night at Brookdale Community College. (Photo: Staff photo/Russ Zimmer)
2. Property taxes are not just pushing people to sell their homes, but to leave the state altogether.

A recent survey by United Van Lines showed that 65 percent of its New Jersey moves are outbound, higher than any other state.

"When they hit 62 they're asking us where can they move?" said Joan Lorwey, a board member on the Monmouth County Association of Realtors.

3. It's on you alone to find your way through the property tax labyrinth.

"Nobody really teaches a homeowner about all these intricacies. The system sort of assumes you know, and 50 years ago that made sense. It was pretty simple," Pfeiffer said, adding that the system has gotten much more complicated today.

4. Property taxes are a symptom of uncontrolled spending.

"No one is being responsible about where the money is coming from. Do we have the money? Can we pay for what we're going to do?," said John Haytaian, of Freehold Township. "When you steal from the transportation fund to pay for something else, the roads go to hell."

Middletown Mayor Gerry Scharfenberger cautioned that not all government spending is out of control. If a typical taxpayer spends $2,100 a year on city services — the proposed budget is actually a little lower than that —  they're getting a lot of value for that, he said.

"That $175 a month pays for police, brush removal, parks and rec, all the services in town ... that's not such a bad deal," he said.

5. Governments like property tax because it's predictable

Unlike income tax, estimates for property tax are "pretty much a certainty."

"That's a really good thing for governments, knowing that when they budget something they're going to get that money," Pfeiffer said, "and that's the reliability of property tax."

Source : http://www.app.com/story/news/investigations/watchdog/taxes/2016/04/15/property-tax-nj-brookdale-handlin/83033602/