Sparta Samples Property Tax Rewards Program

Instead of just getting extra cheese  on that pizza, Sparta property owners might soon be able to get a property tax credit at the same time.

That is the heart of  a program presented to the Township Council Tuesday by Carmine DeFalco  and Nicholas Campanella of Fincredit Inc., a Marlboro based company that offers a property tax reward program.

It works in the same way a regular credit card reward program functions: Merchants enrolled in the program offer a percentage  discount on their goods and services. Instead of the credit being applied to the cardholder’s balance, it is placed in an escrow account to be credited against the homeowner’s property tax bill.

For renters, Campanella said, the credits would be paid to them yearly as a check.

The program was launched in Marlboro, and will start up in Bayonne, Pequannock and Highland Park on Friday, Campanella said. It is called "Shop Marllboro."

He said they also made a presentation recently in Newton.

“The goal is to encourage local shopping,” DeFalco said. “The program encourages local businesses to expand, can attract new businesses and helps pay local property taxes. If your tax bill is $10,000, and you gain $1,000 in credits, the tax bill drops to $9,000.”

He said they initially recruited 40 businesses in Marlboro out of about 200 in the municipality. About 1,200 homeowners are registered, and in the first year, they generated a total of $182,000 in tax credits.

Businesses enrolled in the program set their  own discount rates, DeFalco said. A coffee shop could offer an 8 percent discount or a pizza restaurant 12 percent, for example.

A $100 sale at that pizza place would generate a $12 tax credit.

Campanella said the program works best for sales oriented businesses rather than professions, but he said in one town a cemetery enrolled.

DeFalco said the credits are transferred  annually in August, after the new tax rates have been established.  For homeowners who pay their taxes through their mortgage company, the company would be given the total tax due minus the credit, so, as in the example above, with a $1,000 tax credit, the mortgage company would be told the tax bill was $9,000.

Deputy Mayor Molly Ann Whilesmith said the program offers an opportunity to grow business in Sparta and offer property tax relief.

The council referred the program to the economic development committee for further consideration.