Trenton Discusses Bipartisan Plan to Fund TTF and Avoid Property Tax Explosion

//Trenton Discusses Bipartisan Plan to Fund TTF and Avoid Property Tax Explosion

Trenton Discusses Bipartisan Plan to Fund TTF and Avoid Property Tax Explosion

A recent NJ Spotlight story outlines the components of the Sarlo-Oroho plan to fund NJ TTF:

“The fuel tax-policy changes would generate more than $1.3 billion in annual revenue for the Transportation Trust Fund, which pays for road, bridge, and rail-network improvements throughout the state. And because the trust fund is already facing significant debt, there would be no money available for new projects once the fund’s current five-year finance plan expires on June 30 under the current gas-tax rates.

The sweeping plan released by Sens. Paul Sarlo (D-Bergen) and Steve Oroho (R-Sussex) on Friday calls for annual state transportation spending to increase by roughly $400 million per year over the current $8 billion finance plan, resulting in a 10-year, $20 billion proposal.”

John Reitmeyer, NJ Spotlight

Reitmeyer and NJ Spotlight consistently provide solid reporting on issues most important to New Jerseyans. Click to read a summary of the Sarlo-Oroho TTF funding plan being discussed in Trenton.

Senator Oroho has also noted the relationship between the gas tax and property taxes, namely, failure to raise the gas tax will result in rising property taxes:

In the 1990’s state government in New Jersey off-loaded responsibility for paying for many of the things government does on to the shoulders of local government. It caused a dramatic surge in property taxes…Now some in state government are advising that we do it again. This time it is our state’s transportation infrastructure...Almost $300 million every year is sent from the Transportation Trust Fund to local governments to repair and maintain the transportation infrastructure. This is about to disappear, and when it does, it will need to be replaced by local governments with a $300 million increase in property taxes…One third of the revenue from the gas tax comes from non-residents passing through. To me our choice is simple: Either we pay 100 percent of the cost to maintain our roads and bridges through increased property taxes, or we pay 65 percent of the cost and let those out-of-state who use our roads pay for the rest through a modest gas tax increase.

Senator Steve Oroho

The Sarlo-Oroho plan actually increases county and municipal aid, which is why the NJ State League of Municipalities supports it. And which is why, if you want to control rising property taxes, you should consider it too.

By |2016-06-15T17:42:21+00:00June 15th, 2016|Infrastructure|