Legislative Leaders Propose Massive Senior Property Tax Break
Last week, Senate President Nick Scutari (D-22) joined Assembly Speaker Craig Coughlin (D-19) introducing legislation to create a huge property tax relief program specifically designed for New Jersey seniors.
Under the provisions of the program, which is nicknamed StayNJ, New Jerseyans over 65 would be eligible for a tax credit worth 50% of their annual property tax bill, with a cap of $10,000.
Immediately after Scutari’s announcement, three Democratic senators running for re-election this year in competitive legislative districts – State Sens. Vin Gopal (D-11), Andrew Zwicker (D-16), and Joe Lagana (D-38) – said they would support the bill.
“This is a game changer for New Jersey’s seniors,” Scutari. “We are now in the business of reducing taxes and making the state a more affordable place for people to live, work and retire. Eliminating 50 percent of their property tax bills will provide seniors more financial security so they can stay in New Jersey.”
While some Republicans indicated support for the tax break, Governor Murphy does not support the plan, calling it “irresponsible,” citing concerns over the proposal’s cost and broad eligibility. Administration officials indicated they are preparing for a state government shutdown if a budget standoff arises.
Proposed Changes to NJ’s Corporate Business Tax
New Jersey lawmakers are considering vast reforms to the state’s corporate business tax.
S3737/A5323 was introduced recently by budget committee chairs in both chambers – Senator Paul Sarlo (D-36) and Assemblywoman Eliana Pintor Marin (D-29). This legislation would drastically cut taxation of some international income while reducing other deductions, among a host of technical and other changes.
The bill would cut by 90% a tax deduction for businesses meant to ease firms through tax code changes, subject income from certain pass-through entities to higher tax rates under the state’s corporate business tax, and require multi-state corporations to include domestic out-of-state revenue on their tax returns.
The sponsors said the changes made by the bill would be revenue neutral, a stance echoed by a Treasury spokesperson Friday. Supporters say it would help keep New Jersey competitive for businesses.
But some detractors say the proposal is a boon to businesses already preparing for a 2.5% surcharge on earnings above $1 million to expire at the end of 2023.
Pintor Marin said she expects the Legislature to advance the bill before lawmakers finalize the next fiscal year’s budget in June.
Overwhelming Public Support for Liquor License Reform
A new Rutgers Eagleton Poll shows New Jersey residents overwhelmingly support reforming the state’s decades-old liquor license laws. 92% of New Jersey residents polled favor allowing breweries more ability to serve food, and another 63% said restrictions should be lifted on the number of events those breweries can hold each year.
The poll also shows 71% support giving small towns extra liquor licenses so more restaurants can serve alcohol. Right now towns are capped at one license per 3,000 residents. And 57% back allowing towns with inactive licenses to transfer them to another town within the county that wants them.
One policy, however, was more closely divided. A proposal to give them a $30,000 to $50,000 tax credit to offset the loss of value for current license holders was met with 45% approval, 42% disapproval.
Legislative Hearing on Psilocybin Planned
Senate President Nick Scutari recently indicated that the legislature is preparing for a hearing to assess the medical efficacy of psilocybin before lawmakers depart for their summer break. Scutari, the primary sponsor of S2934 (22R), legislation that would establish a legal framework for the regulated use of psilocybin, the active compound found in magic mushrooms, in mental health treatments as a remedy for disorders.
Scutari’s bill, the “Psilocybin Behavioral Health Access and Services Act,” was introduced last year but has not advanced in either chamber. In the Assembly it has the backing of Assembly Health Committee Herb Conaway (D-Burlington), who has signed on as a prime sponsor; the bill has been referred to the Assembly Health Committee.
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