Chiaravalloti bill to establish property tax reward programs headed to Murphy’s desk

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A bill introduced by Assemblyman Nick Chiaravalloti (D-31) that would establish local property tax reward programs statewide is headed to Gov. Phil Murphy’s (D) desk.

By John Heinis/Hudson County View

“Municipalities across New Jersey have found a way to do the impossible; encourage residents to support local businesses, while at the same time lowering their property taxes,” Chiaravalloti began in a statement.

“Businesses do more business. Shoppers know every dollar they spend at participating local stores and restaurants will lower their property tax bill. It’s common-sense solutions like this that will boost New Jersey’s economic recovery from the COVID-19 pandemic-induced recession and ease its burden on small businesses and hardworking families.”

Bill A-4806, also sponsored by Assemblyman Ron Dancer (D-12), received final
legislative approval on Thursday, passing the state Assembly 72-0 and Senate 37-0.

The measure would authorize property tax reward programs structured as local merchant loyalty initiatives.

The programs would provide cash rewards to municipal residents and employees, people who work in the municipality, and residents of other municipalities who choose to
participate in the program when they buy goods or services from businesses in the town that agree to provide cash rewards.

The program would be run by a private entity designated by the municipality.

Shoppers would use a rewards card to make purchases at participating businesses and rewards would be calculated as a percentage of the total sale.

The business would pay for the rewards earned by customers, plus a separate administrative fee for the program’s operator.

On June 1st each year, the operator of the program would provide the municipal tax collector with a list of property owners who participate, as well as their rewards earned between May 1st and April 30th.

The total dollar value would be subtracted from the resident’s property tax bill.

Additionally, participants who do not live in the municipality would receive a rebate check.
The bill would also validate existing property tax reward programs.

This measure is part of a legislative package based upon recommendations from the coronavirus recovery Economic Advisory Council established by Assembly Speaker Craig Coughlin (D-19).

The council’s charge was to provide input and ideas to the State Legislature to guide New Jersey’s economic recovery from the COVID-19 pandemic.

Murphy now has the option to either veto the bill or sign it into law.