The recommendation to prohibit consideration of spending was not unanimous, however. Several members dissented, arguing that no meaningful property tax reform can be achieved without addressing the issue of government spending, which drives the need for more property taxes.

NJBIA opposes a constitutional convention because any solution arising from this process would likely increase the tax burden on the business community. Taking the issue of government spending off the table would prevent convention delegates from producing any meaningful property tax reform and force them to decide only how to shift the tax burden away from homeowners. Businesses could wind up paying a higher property tax rate than homeowners. Other State taxes and fees could also be raised to pay for the spending now supported by local property taxes.

The task force was created by the Legislature and former Governor James E. McGreevey to decide if a New Jersey State Constitutional Convention should be convened to enact property tax reform and, if so, how such a convention should be structured. The issue now heads to the Legislature, where legislation detailing the scope and nature of a constitutional convention is expected to be introduced on January 10. If legislators pass the bills, voters would have to approve a constitutional convention in a referendum during a general election in November, and individual delegates would be elected by legislative districts.

NJBIA will be working to defeat legislation implementing the recommendations of the task force. A convention is not necessary. Legislators have the ability and the authority to enact meaningful property tax reform and should do the job they were elected to do. NJBIA believes political leaders could break the deadlock over property tax reform by calling a special session of the Legislature and prohibiting lawmakers from conducting any other business until this critical issue is addressed.

NJBIA also believes that property tax reform should not single out employers for higher taxes. Currently, the State constitution requires residential and commercial property to be taxed at the same rate. A constitutional convention could remove this clause, which would allow local governments to impose even higher taxes on employers. For more information, contact Melanie Willoughby at ext. 205 or mwilloughby@njbia.org.

Repeal of Smart Growth Law Introduced—A group of lawmakers has introduced legislation that would repeal a new law designed to direct building and growth towards urban and older suburban areas that are already built up. The bill, S-2157 (Lance, Turner)/A-3650 (Morgan, Rooney), would eliminate the newly created position of Smart Growth Ombudsman, stop expedited permitting in smart growth areas, and cancel the divisions of smart growth created within the NJ Department of Environmental Protection (DEP), the NJ Department of Transportation (DOT), and the NJ Department of Community Affairs (DCA).

This legislation comes on the heels of an executive order, issued days before former Governor James E. McGreevey left office, delaying implementation of the law by at least seven months. Just a few months after he signed the law, McGreevey ordered DEP, DCA and DOT to give the public 90 days to comment on how the law should be implemented and another 120 days to propose implementation rules.

NJBIA strongly supports the law and opposes legislation that would repeal it. Until now, smart growth initiatives focused almost exclusively on preventing development. The smart growth law is the best State initiative that provides incentives for developers to pursue projects in areas that the State says are suitable for growth, thereby reducing development pressure on open space and other environmentally sensitive areas. For more information, contact Jim Sinclair at ext. 236 or jsinclair@njbia.org.

Meet the Governor’s Top Advisors in Three Briefing Breakfast Meetings in February and March—Join us for briefing breakfasts with six top officials in the Administration of Acting Governor Richard Codey. Find out what the Codey Administration has planned for the year ahead that could affect your business. Don’t miss these meetings with six of the most influential people in our State capital. Seating is limited, so sign up today. Each event will be held at the Sheraton Edison Hotel from 7:45 a.m. until 10:00 a.m. The cost is $59 per person for NJBIA members and $99 for nonmembers. For more information, contact Katie Wittkamp at 609-393-7707, ext. 239. If you would like to become a breakfast sponsor, call Sherry Esteves at ext. 219. The dates and speakers are as follows:

Tuesday, February 1
Governor’s Chief of Staff Peter Cammarano, Governor’s Chief Counsel Paul Fader, and Counselor to the Governor Eric Shuffler.

Tuesday, March 1
Thomas Carver, Commissioner, and A. J. Sabath, Deputy Commissioner, NJ Department of Labor and Workforce Development.

Tuesday, March 15
Bradley Campbell, Commissioner, NJ Department of Environmental Protection.