TRENTON – Senate Budget and Appropriations Committee Chair Wayne Bryant today announced his proposal to require all revenues collected from the Millionaire’s Tax go into a trust fund dedicated solely for property tax relief.
“When we passed the Millionaire’s Tax last year, its intent was to reduce the property tax burden on New Jersey homeowners,” said Senator Bryant, D-Camden. “By requiring the revenues from this tax go into a trust fund dedicated to property tax relief, we are keeping the promise we made to the people of New Jersey.”
The Millionaire’s Tax increased the marginal income tax from 6.37% to 8.97% on all income over $500,000. In Fiscal Year 2005, the increase brought in an additional $845 million for property tax relief. Another $991 million is expected for Fiscal Year 2006.
“In this year and in the future, we will avoid any further confusion over whether property tax relief constitutes spending,” added Senator Bryant. “This trust fund will guarantee that all sources of money meant to decrease the tax burden on homeowners won’t find their way into new state spending programs in the future.”
Senator Bryant noted that he intends to introduce legislation creating the trust fund soon and will schedule a vote on the bill in the Senate Budget and Appropriations Committee when the Senate reconvenes after the Budget Recess.