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ATLANTIC HIGHLANDS HERALD
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PROGRESS BEING MADE ON TAX RELIEF A recent Star-Ledger/Eagleton-Rutgers Poll showed education as the top concern of voters in the upcoming gubernatorial contest. The State's incessantly high auto insurance rates, as well as high property tax rates, were also hot button issues for voters, according to the poll. The results of this poll may not be surprising to many of you, who place the utmost value on education. Many of you realize that a well-educated population is the backbone to a community's success. In addition to education being a top concern for voters, there has also been much talk throughout this campaign season about the need to provide tax relief. What some may not realize is that action is being taken in the New Jersey Legislature to alleviate some of the undue tax burdens as they relate to education, addressing two of the voters strongest concerns. For instance, a bill (A771) sponsored by Assemblywoman Mary Previte (D-6) and Assemblyman David Wolfe (R-10) allows a gross income tax deduction for certain higher education loan payments. Taxpayers would be able to deduct higher education loan payments paid in that year from their gross income for that taxable year. Furthermore, the bill allows the deduction of higher education loan payments for the taxpayer, the taxpayer's spouse and the taxpayer's dependents for amounts borrowed to pay tuition, fees, books, supplies, equipment, and reasonable room and board expenses to accredited higher education institutions. Under current law, there is no deduction for higher education loan payments. This important piece of tax relief has been referred to the Assembly Education Committee and will likely see action before the end of the year. Another bill (A844) sponsored by myself and Assemblyman Sam Thompson (R-13) seeks to provide some equity to Mayors who attract new ratables, while at the same time not being punished by the State. Currently, Mayors that bring new tax ratables to their towns may actually experience a net loss due to school funding reductions by the State. This bill addresses a disincentive in the school funding formula to provide that new ratables within a school district will be phased in over a ten-year period. By phasing in the impact of new ratables over a ten-year period, the bill will encourage communities to seek new ratables without fear of being a "net loser." This bill can be a tool for Mayors to provide property tax relief to homeowners - particularly senior citizens. The bill has been referred to the Assembly Education Committee and will also likely see action before the session ends. An identical bill has been introduced in the State Senate (S879) by Senator Joe Palaia (R-11) and John Bennett (R-12). What is important to realize is that steps are being taken to address some of the issues residents feel most passionate about: education and tax relief. Monmouth County residents can feel confident that their strongest concerns are not only being recognized by the State Legislature but are also being acted upon. Contact Assemblyman Corodemus - AsmCorodemus@njleg.state.nj.us www.corodemus.com www.njleg.state.nj.us/html/corodem.htm District office: Your Comments
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