Property tax convention gets bogged down

Legislative resistance to Corzine's plan for citizens' gathering puts his proposal on a 2008 timetable
Thursday, April 20, 2006By TOM HESTERThe Star-Ledger Staff

The "citizens' convention" on property tax reform that Gov. Jon Corzine called for during his campaign is unlikely to happen before 2008, if at all, according to legislative leaders.

On that timetable, any tax reforms that a constitutional convention might propose would not take effect until 2009, the last year of Corzine's current term in office.

State Senate President Richard Codey (D-Essex), who has long been lukewarm to the idea of a convention, has told other lawmakers he is open to the idea but only after the 2007 legislative elections.

Assembly Speaker Joseph J. Roberts (D-Camden), who favors a convention, said he "would prefer a more expedited timetable, but it is better than nothing at all."

During his campaign last fall, Corzine spoke of holding a special session of the Legislature within the first 100 days of his administration to develop ideas about restructuring the state tax system for a convention to consider. After his inauguration, however, he said getting the state budget balanced by the June 30 deadline would have to come first.

Asked this week about how quickly a special session and convention could be held, Corzine indicated he knows there are hurdles in the Legislature. "Fast track, slow track, in regards to property taxes it is something that has to be worked out with leadership," he said.

Corzine's spokesman, Anthony Coley, later said the governor wants to move ahead with a convention as soon as possible. "The governor continues to have discussions with the legislative leadership about the timing of a convention," Coley said.

In an interview, Codey would not discuss a specific timetable for a convention and suggested it might not be necessary if the Legislature addresses tax reform this year.

"I am open to things, but I think I would prefer to do something in special session," Codey said. "This is all for discussion involving myself, Speaker Roberts, other legislators and the governor. I think we all recognize that something has to be done in the next two years or so. We have got to look at a special session first. Down the road, maybe there will be a need (for a convention)."

Codey also indicated he is in no hurry to seek a special session this summer. After wrestling over the budget, he said, "I think we will need a breather for a month or two, for sure."

A special session could enact tax law changes, or develop proposals for a convention to consider, or both. If a convention were planned for 2008, a referendum on whether to hold it would appear on the 2007 ballot.

"Senator Codey and I spoke with Governor Corzine about this (the convention) and we are trying to find a middle ground that deals with everyone's timetables," Roberts said. "I prefer a convention sooner than later. Senator Codey is warming to a convention but with a bit of a different timetable. The governor wants a special session and a convention. Different approaches remain but we are getting closer."

Former Sen. William Schluter, who has shepherded the convention proposal since the 1990s, said, "I am still optimistic, I hope Governor Corzine has the convention proposal on the'06 ballot, but I am facing reality. It might be 2008 before a convention is held."

The convention idea has the backing of a coalition that includes, among others, the League of Municipalities, the League of Women Voters, and the AARP.

Corzine and Roberts are expected to touch on the status of tax reform when they appear at the New Jersey Conference of Mayors convention today in Atlantic City. They will face the issue again when they speak at the League of Municipalities' property tax summit on May 10 in Lawrence.

League director William G. Dressel conceded that 2008 now looks like the earliest date for a convention. But he said yesterday that the results of Tuesday's school budget elections -- in which almost half were defeated -- showed that taxpayers are impatient for reform.

"They will demand more than a promise of a special session, sometime in the future. There is nothing that the Legislature could do in a special session, that it could not have done two, or 10 or 20 years ago in a regular session," Dressel said, adding, "coalition members are doubtful that a special session would produce meaningful and lasting property tax reforms. "

Somerdale Mayor Gary Passanante, a Democrat and tax reform advocate, put it more bluntly.

"The property tax crisis is a burning fire. The Legislature is the fire department. It has repeatedly been notified of the situation, but it hasn't shown up yet. Finally, we can wait no longer," Passanante said. "If the Legislature is not going to put the fire out, then it should at least let the people of New Jersey borrow the truck."


Tom Hester covers state government. He may be reached at thester@starledger.com or (609) 292-0557.
© 2006 The Star-Ledger. Used by NJ.com with permission.

Return to Articles page