Jan. 31, 2007 - GOP Fears Court Challenge to Tax Relief

Assembly Minority Leader doubts legality of tax credit

It has been reported in today's media that state Republicans are claiming the proposed property tax credit plan nearing final approval next week may be unconstitutional and could be voided by a court challenge.  Assembly Minority Leader Alex DeCroce, R-Morris Plains, said the income thresholds that would determine homeowners' property tax credits violate the state Constitution's "uniformity clause," which says personal characteristics, such as age and income, cannot be taken into account when taxing property.

"They are risking property tax relief that homeowners desperately need and can't afford to lose just because the Democrats refuse to play by the rules or listen to reason," DeCroce said. Republicans said they did not want to block the proposal but worried that someone else may challenge the plan in court.

I reported to you that the credit program would offer tax credits ranging from 20 percent to 10 percent, depending on income. Households earning more than $250,000 would get nothing. The plan was approved in the Assembly late Monday, by a 71-8 vote, with support from 24 of 31 Republicans.

Democrats said their plan is clearly legal.  Stay tuned....