Property Tax Credit Program Makes Pitch To Come To Manchester

What if there was a way to save money on your property taxes and support local businesses at the same time?

That’s the goal of a property tax credit program that made a pitch for consideration to the Manchester Township Council this week.

Fincredit operates its program in nearby Brick Township and in Marlboro Township. Participating residents are issued a card, similar to a rebate card you might receive at a place like CVS or ShopRite. Local businesses are recruited to participate, and they agree to give a percentage of a consumer’s purchase as a credit that is then applied to the resident’s property taxes, usually on the third-quarter bill.

The cards are free to residents who participate; they must register the cards online -- though Carmine DeFalco, the CEO of Fincredit, noted there is a phone number residents can call to get assistance with the registration if they do not have or use a computer.

The program does not cost the town anything except to buy the cards; Brick Township found a business (the River Rock Restaurant and Marina) to sponsor its cards in exchange for appearing on them. The Buy in Brick program kicked off last fall; 35 businesses are participating so far there.

Businesses pay $10 per month, and $160 for a terminal to process the credits, though Fincredit’s brochure says there is no charge to a business if transactions are processed online.

Fincredit earns a 25 percent fee based on the value of the property tax savings to each participating resident. If a business gives 10 percent back, it would pay FinCredit 25 percent of that amount.

There are 11 towns around the state participating in the program. In Marlboro, the first town to participate, 50 merchants were signed up and more than 3,300 residents were enrolled as of April 30, 2014, according to an NJ.com article from September 2014. Marlboro Mayor Jonathan Hornik told NJ.com that more than $1 million in business had been generated by the program.

Several residents asked whether large chains such as ShopRite participate in the program.DeFalco said they do not because of the difficulty of making an arrangement with a large retailer on a local level.

Another resident asked what would happen to the accumulated credits if a cardholder sold their home, and DeFalco said the credits would either be returned in the form of a check or used to reduce any property taxes still due at the time of the sale.

The council took no action on the program Monday night.