ASSEMBLY, No. 1838

STATE OF NEW JERSEY

INTRODUCED MAY 2, 1996

By Assemblymen GREGG, GARRETT, Felice, Malone, Bateman, Assemblywoman Bark, Assemblyman Cottrell, Assemblywoman Crecco, Assemblymen Augustine, Bucco, Assemblywoman J. Smith, Assemblymen Bodine, Roma, Geist, Kelly, Holzapfel and DeCroce

An Act concerning property tax relief for local government residents and supplementing chapter 4 of Title 54 of the Revised Statutes.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. This act shall be known and may be cited as the "Property Tax Reduction Work Act."

    2. The Legislature finds and declares that:

    Property taxes remain one of the highest single expenses for State residents and are especially burdensome for seniors on fixed incomes, single-income families, and families with children in college.

    Retired residents, homemakers and students possess many of the necessary clerical and professional skills needed for efficient running of school districts and municipal and county governments.

    It is in the public interest to utilize the part-time talent and skills of State residents to help in the functioning of local government because it gets more people involved with their government and can lower property taxes by reducing the need for full-time employees.

    Many State residents would be motivated to perform services for their municipality, county or school district if, in return, their property tax liability could be reduced.

    3. A municipality, county or school district may, by ordinance or resolution, as appropriate, adopt a program permitting certain residents of the county or taxing district to perform services for the county, municipality or school district in lieu of services which would normally be performed by municipal, county or school district employees. The municipality, county or school district shall designate such residents performing services as "resident associates."

    4. A resident associate may be any bona fide resident of the county, municipality or school district, as appropriate. The resident associate shall be qualified by education or prior work experience to perform a particular service for the county, municipality or school district.

    5. A resident associate may be recruited to fill any vacant position formerly held by a part-time or full-time employee which does not require certification from the State and was funded through the property tax.

    6. A resident associate who performs services for the municipality, county or school district shall be awarded a voucher which may be used to offset the property taxes due on the residence of the resident associate within the county or taxing district, as applicable. The property tax voucher shall not be transferrable and may not be used to offset the property taxes due and payable for any year other than the year for which it was issued.

    7. Resident associates may be recruited to perform services only when a part-time or full-time position has been vacated in the county, municipality or school district. Vouchers may not be issued to resident associates in amounts that annually exceed the property tax due for that year on the property in which the resident associate resides.

    8. A resident associate shall not be entitled to any benefits or compensation other than a voucher to be used to offset the property tax liability of the property in the county or taxing district providing the voucher wherein the resident associate resides.

    9. A resident associate shall be paid with a property tax voucher at the rate of no more than half the annual salary of a prior part-time or full-time municipal, county or school district employee. Such amount shall be pro-rated on the basis of an hourly wage so as to ensure that the resident associate service does not exceed the amount of the property tax owed for that year.

    10. This program may be used to help those residents whose property taxes are delinquent and against whose property foreclosure of a tax sale certificate has been initiated.

    11. No resident associate shall be related to a municipal, county or school district elected official or employee.

    12. This act shall take effect immediately.

STATEMENT

    This bill is intended to permit residents of a municipality, county or school district to enroll as resident associates. A resident associate would perform clerical or professional services previously performed by a part-time or full-time local unit employee who vacated such a position. In return for the service provided, a resident associate would receive a voucher to be used to offset the resident associate's property tax liability. This program would apply to seniors, homemakers and students or any other resident who can contribute to the performance of local services. This program would have the effect of reducing local government expenditures since a resident associate who is qualified would perform the same services of a prior local government employee at no more than half the rate of pay of the prior employee and with no pension, health or other fringe benefits.

"Property Tax Reduction Work Act"; permits local units to recruit residents to perform services in return for property tax vouchers.