NJ Senate approves property tax cut

New Jersey lawmakers Tuesday approved a sweeping measure to give homeowners relief from the highest property taxes in America.

The measure gives most homeowners a 20 percent tax break. New Jersey homeowners pay an average of $6,000 a year in property taxes, twice the national average.

The bill, which also limits future property tax increases, now goes to Democratic Gov. Jon S. Corzine.

"Relief is on its way to overburdened property taxpayers in New Jersey, and I think we have reached a turning point with regard to reform," Corzine said.

Homeowners earning up to $100,000 will get a 20 percent tax break, with lesser relief going to households earning up to $250,000. About 1.9 million of the state's 2 million homeowners would get help.

The Democrats are calling it the biggest property tax cut for working families in New Jersey history.

The measure passed the Senate by a final vote of 28-10.

Critics had sought equal relief for all homeowners and questioned whether the plan can be funded in future years.

"I do not want a one-year program that cannot be sustained beyond the close of polls on Election Day 2007," said Senate Minority Leader Leonard Lance, a Republican.

The measure puts a 4 percent annual limit on future property tax increases, though schools and local governments can ask the state and voters to exceed the cap. New Jersey property taxes have been increasing about 7 percent a year.