NJ Senate Approves 2% Annual Property Tax Cap

by KYW's David Madden

As expected, the New Jersey state senate has overwhelmingly approved the compromise annual two-percent cap on future property tax increases.

The measure now goes to the Assembly, where action is scheduled for Monday.

It's not the constitutional amendment the Christie administration had sought, nor does it provide all the loopholes that Democrats in the legislature had wanted.

But the 35-3 vote paves the way for what many believe is the first serious step in reining in government spending.

State senator Jeff Van Drew (D-Cape May):

"It may not be perfect, but if we need to change it in the future statutorily, we have room to do that and present other ideas to the governor. If the voters themselves want to make change at the micro level locally, they have the ability to do that."

...because exceeding this new cap will require not state but voter approval.

A few opponents suggested they should first approve the so-called "toolkit" of regulatory reforms sought by the governor so municipalities can work within the cap.  Action on that front is expected over the summer.