MEADOWLANDS – When tax sharing was eliminated earlier this year, the intention was for a new 3 percent surcharge on hotels in the Meadowlands to take up the slack. So far that hasn’t happened, with less than $1 million collected through May.
Six towns were due to receive a total of about $2.5 million on May 15. Instead Jersey City, Rutherford, East Rutherford, North Arlington, Ridgefield, and Kearny were each allocated pro-rated portions of the approximately $990,000 collected from the hotel surcharge.
Spring is traditionally a slower period for hotels in the region, but results are still significantly below expectations. Predictions were for the hotel surcharge to bring in about $7 million to $10 million per year. Total payments to the six towns was scheduled to total $7.4 million, due in installments on May 15, Aug. 15, and Nov. 15. Representatives from the six towns have expressed concern over the shortfall, since that income was included in their annual budgets.
In the past, Secaucus was one of several municipalities paying millions of dollars annually into the tax sharing fund, while other towns received payments from the fund. In February the New Jersey Meadowlands Commission and the New Jersey Sports and Exposition Authority (NJSEA) were consolidated into one entity. As part of that change, the tax sharing program was eliminated, with the new hotel surcharge designed to allow the recipient municipalities to continue receiving funding annually.
According to a representative of the NJSEA, the state will be responsible for covering any shortfall in payments.
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