Senate President Richard Codey announced last Thursday that he will form a task force to plan a special legislative session on property tax reform. NJSBA advocates convening of a special legislative session to address changes in the state’s revenue structure.

According to an article in the Star-Ledger, Codey will name the task force members by May 26. The task force will begin its work after enactment of the 2006-07 state budget, which should take place no later than June 30. The special session would consider tax reform proposals from the Corzine Administration and other interested parties, the Senate president said.

Codey did not indicate when the task force would complete its work or when a special session would take place, the Star-Ledger reported.

Convention vs. Session While state leaders agree on the need to address property tax reform, the method used to attack the problem has dominated public debate. Codey’s latest action to advance a special session on tax reform reflects his earlier statements that the Legislature has a responsibility to address the issue. Assembly Speaker Joe Roberts, however, is a long-time advocate of a citizen’s Constitutional Convention—as opposed to a special session—to address tax reform. He has concurred with efforts to restrict the purview of such a convention to the state’s revenue structure. Meanwhile, Republican leaders in the Legislature have criticized any tax reform effort that does not address spending, as well as revenue, policy.

Codey announced formation of the special session task force last week following critical comments made at a state League of Municipalities conference, according to the Star-Ledger. The League is an advocate of a constitutional convention.

Special Session=Fast Action NJSBA believes that the magnitude of the property tax issue warrants immediate action. Therefore, NJSBA advocates the convening of a special legislative session on tax reform. Unlike a constitutional convention, which may not propose a solution  until 2009 or later, a special session could go to work within a short period of time.

NJSBA advocates revenue-neutral property tax reform. That process would provide a statewide decrease in local school property taxes that is matched, dollar for dollar, by a shift to the state income tax.