Property tax is no longer a just tax
Your Turn
John C. Hendrickson

Guest Column

Every year many school districts have to work out a new contract with the teachers’ union. Many local taxpayers attend the board meetings so as to closely monitor progress with teacher contract negotiations. Their hope is that by doing so they might help rein in property tax increases.

They are trying to address high property taxes through controlling the terms of teacher contracts. This is misguided.

For the past 15 years, I have monitored teacher contract settlements; they invariably end up well above inflation as well as state-imposed budget increase limitations. The result is annual increases in the property tax.

Boards of education, in the face of tremendous pressure from threatened strikes and PTAs and others, usually cave in and settle for these wage increases, knowing they will automatically shortchange funding for other parts of the budget.

But books and roofs do not have a powerful union there to represent them, and so end up the losers. These contracts are usually for three or four years. As contracts, there is no chance to adjust them when other budget items are underfunded.

This routine inevitably causes a great outcry for property tax relief.

People then begin to blame the schools for the never-ending property tax increases and the consequent pressure on their personal budget. This is misplaced blame.

If property taxes were not used for funding schools, county and local governments, then spending issues would not be addressed in terms of either cutting funding or driving low-income homeowners out of the state.

De-link property taxes and then address these areas. Tie controlling education and other government spending to how much people complain about property taxes and we make a huge mistake.

The top tax rate in N.J. for those making over $500,000 is less than 9 percent. Yet, there are countless homeowners — especially retirees and the unemployed — who are paying double and triple that percent of their income to pay property taxes. These people have less disposable income, if any, than those at the top of the income tax scale.

Where is the fairness in that scheme? And property taxes go up every year. How often do income taxes go up?

We need to eliminate the property tax in New Jersey. It is from another era when one’s income was directly related to the property they owned. This is no longer the case.

This is a matter of fundamental fair play, justice and equity.

Clearly, we also need to address spending in all facets of government. But we ought not be driven to do that merely because property taxes are becoming too high. We need to do it because it is the responsible thing to do.

Let us stop confusing the issues. Government spending is out of control in every area. The property tax is no longer a just way to collect taxes. Separate them.

One problem will totally go away. The other can then be dealt with without distraction. It is the right thing to do.

John C. Hendrickson is a resident of Red Bank