State Legislator Urges Preservation of Interest Arbitration Reform in New Jersey
Thursday, March, 13, 2014
New Jersey politician Jon Bramnick has urged the State Assembly to renew a 2010 law that prevents property taxes from “skyrocketing.” The 2010 Interest Arbitration Law is set to “sunset” automatically on March 31st, 2014 if the Assembly does not vote to extend the law for another period of years.
Binding arbitration was seen as a primary cause of steadily rising property taxes in New Jersey, as the arbitration mechanisms that municipalities had to maintain were costly and unnecessary, according to Republican politicians. The 2010 law removed the requirement to maintain these mechanisms, and has been seen as instrumental in keeping property taxes flat in the state over the last four years. New Jersey currently has some of the highest property tax rates of any state in the country.
There is only one more scheduled voting session before the expiration of the current law. Bramnick warns that allowing the law to sunset would force some municipalities “to reduce services, layoff employees or raise taxes.”