Law to Aid Nutley in Roche Tax Loss Moves Forward

State officials are moving to bring tax relief to Nutley to offset the loss of more than $9 million in a year tax revenue shortfall caused by the departure of Roche Pharmaceuticals.

State Assemblyman Ralph Caputo said Wednesday that he is meeting with members of the state Finance Committee to try and secure funding for the "Corporate Disinvestment Property Tax Relief Act" bill.

"We have moved it through committee, but getting the funding will be a heavy lift," Caputo said.

He said the bill would apply to neighboring Clifton, after Bergen County officials asked for the city to be named, but the bill would also apply to any town that meets the criteria.

"With all of the major corporations and businesses that are leaving New Jersey, many municipalities in the state have been hurt," Caputo said. "The help will only be temporary, until new corporate clients are found to fill the tax void."

The Nutley Board of Commissioners passed a resolution in January that asked Caputo and state Sen. Ronald Rice to push for the change. 

Earlier this month, county Board of Chosen Freeholders approved Freeholder Brendan Gill's accompanying resolution.

The Nutley resolution states that the commissioners "are committed to protecting the taxpayers of the township from any undue financial burden arising from the Roche departure." 

Commissioner Thomas Evans said the bill would provide Nutley with a short-term, increase in state aid arising from the closure of Roche, and is meant to be temporary, in the event of a shortfall, so the township can cover the cap in its tax revenues.

"This is needed so that the taxpayers of Nutley don't have to take on the extra taxes," Evans said at a recent meeting.

Evans said the bill makes clear that any changes would not be permanent, that municipalities have to stand on their own eventually, and the help would be very limited to fill the shortfall while the municipality pursues another avenue to fill the revenue shortfall.

Roche Pharmaceuticals is leaving Nutley and Clifton because of problems with the costs of drug trials and the need to consolidate research and development, according to town officials.

Darien Wilson, Director, Public Affairs at Roche said that Roche plans to cease business operations onsite at the end of 2013, then carry out any necessary remediation and sell the site by the end of 2015. During that time, Roche will still be the site owner and pay its share of taxes, Wilson said.