Legislature Passes Municipal Property Tax Bailout Scheme
Certain bills are a little more emblematic of the road to decay the Democratic-led Legislature has the state speeding forward on. This year’s poster child is the “Corporate Disinvestment Property Tax Relief Act” (A3807/S2595).
Earlier this year Hertz announced that it would be closing the doors of its corporate headquarters in Park Ridge, NJ and heading for sunny Florida where the business climate is better and the quality of life for its employees, a point the company itself emphasized. With a stroke of a pen, 700 high-paying jobs would be lost along with the loss of Park Ridge’s number one taxpayer. (Click here to read AFP’s press release: “It ‘Hertz’ to see ‘em go”)
A logical response from the Democrats in the Legislature would be to admit that New Jersey’s tax climate has become too oppressive for businesses and act to lower them, especially our high 9% corporate tax.
Instead, the Democrats introduced the “Corporate Disinvestment Property Tax Relief Act” to spread the pain to taxpayers across New Jersey, forcing them to subsidize a municipality which has lost a company like Hertz from its community. Only in New Jersey, apparently, is a bill needed to address the economic pain inflicted after a company has left the state. (See here for AFP’s earlier press release on the bill).
The “Corporate Disinvestment Property Tax Relief Act” sets a horrible precedent of bailing out municipalities who have heretofore benefitted by having the a company of Hertz’ worth contributing a great deal to their ratables.
Unfortunately, the “Corporate Disinvestment Property Tax Relief Act” has made its way through the Legislature and is headed for the governor’s desk.
AFP urges activists to call Gov. Christie’s office at 609-292-6000 and press him to veto this inane piece of legislation.