Both Houses of the New Jersey Legislature will debate how the state will use a portion of its latest sales tax increase to alleviate the property tax toll on residents during simultaneous committee hearings on July 27. 

The Senate and Assembly committees on state government each will meet at 10 a.m. to discuss an amendment to the state constitution that would dedicate half of the annual revenue generated from the state’s new one-cent sales tax increase directly to property tax reform. 

The committees will debate authorizing the state to set aside 0.5 percent, or half of the sales tax increase that took effect July 15, to be placed in a special Property Tax Reform Account. It would be used exclusively to lighten the property tax burden on Garden State residents. 

If the measures move out of each committee and through the respective Houses, gaining the governor’s blessing, then state voters will be presented with a constitutional amendment proposal at the polls in November 2007. 

Following the committee hearings, Gov. Jon S. Corzine is scheduled to unveil his property tax reform plan to a meeting of the joint Legislature at 11 a.m. on Friday, July 28. The presentation is expected to be broadcast live online through the New Jersey Legislature site.