Howell Council Hears Property Tax Reward Program Pitch

HOWELL, NJ - Howell residents may be close to potentially earning up to a few hundred dollars off their property taxes just by shopping local, according to the latest meeting of the Howell Township Council.

At the Feb. 9 meeting, the five-member council heard Carmine De Falco, president of Marlboro-based company Fincredit, speak on behalf of the decade-old program that’s already been implemented in several Monmouth County towns.

Although the council has discussed the initiative for years, Deputy Mayor Thomas Russo most recently introduced the idea at a Jan. 26 Howell Township Council meeting. Russo leads the township’s Business Recovery Task Force, which helped bring the current plan to fruition.

At the last meeting, Russo reported that members of the task force have already begun surveying local businesses. “Everybody seemed to be on board,” he said. Read more: Howell Council Talks Potential Shop Local Tax Rebate Program

Fincredit’s services have been used by over 26 municipalities in New Jersey since it started its property tax reward program over 10 years ago. Municipalities like Marlboro, Manalapan and Ocean Township in Monmouth County have already set up programs through Fincredit, as have Brick, Point Pleasant and Point Pleasant Beach in Ocean County.

Through Fincredit’s rebate initiative, a municipality will issue cards to all its residents in the community. When people shop at participating businesses, cards get scanned and percentage of the sale goes back to the resident’s property tax bill.

“The more I shop in my own town, the more property tax credits I earn,” De Falco said, noting that the project is inexpensive to merchants and doesn’t cost anything to a township (even the rebate cards are typically sponsored by a local business). “Our program is arguably the least expensive form of marketing that a merchant can do,” De Falco said.

Every month, Fincredit will also send out coupons for select merchants. Participating businesses will also have access to the email address and names of all those who participate in the incentive program.

In place of a tax credit, those who rent or who work in the township will be eligible for a rebate check through Fincredit. “The idea is to drive traffic in town. Don’t let them go home at night. Go to the local restaurant, the local hair salon, nail salon. That’s the idea,” the company president said.

The specialty rebate card reader requires equipment that uses an Android interface, which is either available on the Google Play store or a $100 card reader. Fincredit is also trying to get on the Apple Store to avoid that up-front cost for small businesses.

The company will keep 25 percent of total reward credits as an administrative fee. Once a year, a payment file is sent to the township tax collector and all residents will receive the credits they earned in the past 12 months. Residents of other participating towns typically receive their benefits on their third-quarter tax bills.

De Falco added that the program will be ideal starting with 15-20 merchants, at least half of which are in high-traffic areas like grocery stores or restaurants. There is no contract for township or area businesses, and either can opt out of the program at any time.

“Once you have those, then you can start the program,” De Falco said. “I would not start a program if you have an interior designer and an architect joining the program.”

Credits can be checked online daily.

Residents can expect a few hundred dollars in cash back by year's end, but it all depends how much locals participate. While $300 - $400 in savings per year is not unexpected according to De Falco, it’s ultimately up to the township to promote and cultivate the program for it to be successful.

The company president reported that the average user can easily save $150 to $200 annually.

“I’ve seen people save $2 who do not utilize it … but I see people save $1,000. The mayor of Marlboro saves about $6,000 to $7,000 … it’s really what you make of it,” De Falco said.