Belleville Mayor: NJ Budget Doesn’t Include Key Tax Provision (Op-Ed)

BELLEVILLE, NJ — The following letter to the editor comes courtesy of Belleville Mayor Michael Melham. Find out how to post announcements or events to your local Patch site.

As the state Legislature and governor move to adopt the new state budget by the end of the month, there have been record surpluses in recent years.

And we have seen the benefit in Belleville – with ANCHOR tax rebates and state aid that has allowed us to continually improve municipal and school facilities.

You would think this is finally the year that state leaders would restore more than $330 million that is owed to municipalities across the state, including Belleville, in the form of energy tax receipts.

Yet – to the frustration of mayors statewide – the fiscal ’24 budget does not include the money designed solely to reduce municipal property taxes.

Taxes on gas and electric utilities were originally collected by Belleville and towns statewide, compensating us for the use of public land. Yet, more than a decade ago, the state decided to take over the collection of the funds and – to no one’s great surprise – the money went to the state Treasury, despite promises the money would be directed back to municipalities.

Last year, I joined mayors throughout New Jersey to urge the state to pay us what is due. A bill to partially restore $75 million of our taxpayers’ money for property tax relief passed the state Legislature. Yet this line item is nowhere to be seen in the proposed fiscal ’24 budget.

In May, I was one of more than 400 mayors from across New Jersey to sign a joint letter between the League of Municipalities, the Conference of Mayors and the Urban Mayors Association that was sent to the Governor’s staff and all 120 members of the State Legislature seeking to restore the energy tax receipts.

The state must stop balancing its budget on the backs of local taxpayers. This pot of money is solely meant for direct tax relief, and it’s time the state finally pays up.

– Belleville Mayor Michael Melham

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