Louis N. Rainone, a partner at DeCotiis, FitzPatrick & Cole, LLP and co-chair of the firm's municipal practice, recently offered public policy analysis on the property tax cap in The Star-Ledger. In April, Rainone noted that it was unlikely many voters would pass waivers that allowed municipalities to exceed their property tax cap.
When asked about the 30 towns that sponsored cap waivers on the ballot last year, Rainone said property tax cap referendum are not a "viable alternative" for towns. "I don't think that it's necessarily an indication that things are better with budgets," he said. "You're starting to see that towns are slowly paring back on services."
Lou's analysis is just another example of the experience and resources available at the full-service DeCotiis law firm. You can read the article in its entirety, below.
Voters in 30 towns won't be asked to raise property taxes beyond a 2 percent cap
The Star-Ledger
September 23, 2011
By Megan DeMarco
Statehouse Bureau The Star-Ledger
TRENTON - Of the 30 towns that could ask voters to raise property taxes beyond a 2 percent cap this November, none will pursue that option.
According to the Department of Community Affairs, none of the towns - those who operate on a fiscal year calendar, rather than a calendar year - will hold referendums to exceed the cap.
The cap law was enacted in January as part of a compromise between Gov. Chris Christie and Senate President Stephen Sweeney (D-Gloucester) in an effort to rein in property taxes and allow residents more control over their tax bills. There are exceptions to the cap, such as pension and health care costs.
In April, 14 towns out of 526 eligible held the referendums. Voters defeated twelve out of the 14, most by double-digit margins.
Experts say fiscal year towns may have taken their cues from their calendar year counterparts, the overwhelming majority of which suffered defeat in April.
"In these dire economic times you have to be looking at the prospect of reducing services because increasing taxes is almost off the table," said Bill Dressel, executive director of the state League of Municipalities. "Trying to ask your taxpayers to increase taxes is a very difficult decision to make."
Louis Rainone, a municipal lawyer for several towns and partner in DeCotiis, FitzPatrick & Cole, said a property tax cap referendum is not a "viable alternative" for towns.
"I don't think that it's necessarily an indication that things are better with budgets," he said. "You're starting to see that towns are slowly paring back on services."