AN ACT concerning the financial burdens high property taxes impose on low income individuals.

  • Posted on: 25 February 2020
  • By: Vishal Kumar
Legislature: 
Primary Chamber: 
Title: 
AN ACT concerning the financial burdens high property taxes impose on low income individuals.
Enactment Clause: 
Be it enacted by the Youth Model Legislature of the state of New Jersey that citizens shall pay less overall in taxes while having the state maintain a similar budget.
Sections: 
Section I: Defines: 1. Property Tax: A tax on property that is determined by the value of the real estate. 2. State Money: Money that is available for the government to spend. 3. Sales Tax: A tax on sales. 4. State Budget: The spending and revenue of the New Jersey government. 5. Corporate Property: Any kind of land, or real estate owned by a corporation.
Section II: 1. New Jersey property taxes will be brought down to 1.08%.
Section III: 1. Exempts all corporate property from the cut in property tax.
Section IV: 1. Acknowledges that the government budget without additional income will be cut. a. The sales tax across the state will be increased to 10.75% in order to maintain a similar state budget.
Section V: 1. Increases taxation on corporations with a net income of over $100,000 to 12%. a. The intent is to further remedy budget constraints that the state may face with the major slash in property tax, especially in public education.
Section VI: 1. Acknowledges that a large portion of school funding is through property tax. a. Increases state money funding from 10% to 30% to compensate for the decrease in spending on schools funded by property tax. i. Such increase in funding will be derived from the increased corporate and property taxes.
Effective Date: 
Effective Date: This bill shall come into effect on December 1st, 2021.
Statement of Intent: 
The purpose of the bill is to reduce the financial strain lower income individuals may face with property taxes. Thousands of citizens are planning on leaving the state just because of the outrageously high property tax; New Jersey as of 2020 has the highest property tax in the United States. What this tax funds isn’t even felt by a large portion of the population. In essence, people are being taxed for something they may not even make use of, making the tax unfair in many regards. A cut in property tax and an increase in corporate tax will both save citizens money while at the same time
Author's Note: 
This bill is not intended to provide the state with any additional revenue.
Lobbyist Consideration: 
Yes
Fund Summary: 
Funds will be remedied through heightened taxes on corporations and through sales tax. There will also be increased state money spending on schools. The state will continue to fund public services.
Speedpass Consideration: 
No
Secondary Sponsor: 
Thinktank Consideration: 
Yes