For many years, the towns in the Meadowlands that were permitted by the state to allow development have had to pay tax money into a state fund to help out the towns that are forbidden from developing for environmental reasons.
Secaucus and North Bergen were among the towns that benefited by tax dollars from local developments and had to pay into the fund. But this year, they decided to protest what they believed to be an unfair formula. North Bergen ultimately gave its contribution, but Secaucus did not.
“It does not work anymore and it’s not fair to the communities.” – James Cassella
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Secaucus also agreed to make its payment “with the understanding that the state would respond expediently to the needs expressed by the Committee,” according to a press release.
This past Monday, the towns in the HMMC held a press conference in Secaucus to discuss their plans.
The districts come together
The press conference came after Secaucus protested this year by withholding its payment of $2.6 million into the tax sharing pool.
As the largest contributor to the pool, Secaucus’ protest garnered the attention of fellow tax-sharing districts such as North Bergen – who in May collectively expressed their intent to withhold the money.
After originally holding out on a due payment of $849,612, North Bergen paid up because they needed to the state’s approval on another matter. Lyndhurst, another sending district, eventually agreed to pay as well.
But North Bergen agrees with Secaucus that the formula needs to change.
“The township continues to believe that the current tax sharing system is unfair to the sending municipalities and should be changed by legislation,” said town spokesman Philip Swibinski last week.
The sending districts are responsible this year for paying a total of $7.4 million in taxes.
The tax sharing program is overseen by the New Jersey Meadowlands Commission, which oversees zoning in the region. The NJMC acts as a planning and zoning agency for 30.4 square miles along the Hackensack River, including 88 percent of Secaucus.
Representatives from both sending and receiving towns attended Monday’s press conference.
“[The tax sharing agreement] does not work anymore and it’s not fair to the communities,” said James Cassella, who serves as both head of the HMMC and mayor of East Rutherford, which actually is one of the towns that receives money. “To emphasize, this is never about municipality against municipality.”
At the meeting, representatives unanimously passed a resolution that proposed changing the funding source of the tax-sharing pool. Their suggestions included using a regional entertainment surcharge, a parking surcharge, regional property taxes, hotel taxes, and a surcharge on Turnpike exits leading into the Meadowlands.
A plea to the governor
For now, the resolution isn’t the only movement gaining momentum.
Sen. Paul Sarlo (D-36th Dist.) recently proposed a bill that would change the nature of the tax sharing formula. Instead of the current municipalities that pay, the financial burden would be shifted to the general state treasury. The bill, recently approved by the state Senate’s Budget and Appropriations Committee, would significantly help relieve the sending towns of their financial duty.
Swibinski said of the bill, “We understand that a bill addressing this has been approved by a Senate committee and we are hopeful that it will pass both houses of the legislature and be signed by the governor soon.”
To further incite a response from the governor, Secaucus and Carlstadt – the towns responsible for the largest payments to the NJMC – agreed to make their first payments.
Stephen LaMarca may be reached ateditorial@hudsonreporter.com.