TRENTON, NJ-- Legislation sponsored by Senator Nellie Pou and Senator Troy Singleton, who represents Bordentown in the State Legislature, which would permit municipalities to authorize property tax reward programs unanimously advanced from the Senate Community and Urban Affairs Committee on Monday.
Under the bill, S3188, municipalities would be permitted to create and operate a property tax reward program. A property tax reward program created under the bill would provide cash rewards to municipal residents, municipal employees, people who are employed in the municipality, and residents of other municipalities who choose to participate in the program when they purchase goods or services from businesses located in the municipality that agree to provide cash rewards under the property tax reward program.
Under the bill, homeowners would be permitted to apply credit from their rewards program towards property tax payments.
The program authorized by the bill is structured as a local merchant loyalty program and marketed as an economic development tool to encourage people who live in and around the municipality to shop at local businesses.
"It is always important to look for new and creative ways to support our local businesses, and right now they need our help more than ever before," said Senator Singleton (D-Burlington). "Through this program, dollars spent locally at a participating business would be dollars credited toward their property taxes. As we come out of this pandemic, and work to revive our economy, we must continue to incentivize people to shop local."
Local businesses would benefit from increased business generated by program participants who patronize their services and goods in order to earn reward dollars.
Marlboro Township is credited with establishing the first property tax reward program in 2012, but other townships have since begun implementing their own respective programs.