Governor Christie Signs Tax Cap Compromise

On July 13, 2010, Governor Christie signed a property tax cap into law which states that municipalities cannot increase their property taxes by more than 2.0 percent annually. There would be four limited exceptions to the property tax cap, which include health care and pension costs, as well as debt payments. Towns would also be granted leeway under the proposal in the event of an emergency, and voter approval of 51 percent would be required to exceed the cap. 

The state Legislature will now move forward in considering the 32 other bills included in the Governor's property tax reform package. NJAR^® will continue to urge the Legislature to work with Governor Christie to enact proposals that will not only slow the rate property taxes increases but eventually lower them. For further updates on critical property tax legislation, stay tuned to the NJAR^® Government Affairs Twitter feed at www.twitter.com/NJARGovtAff.

 

President Signs Tax Credit and Flood Insurance Extensions

President Obama signed HR 5623, the Homebuyer Assistance and Improvement Act of 2010, into law on July 2, 2010, extending the closing deadline for buyers who qualified for the federal tax credit. Those home buyers who were under contract by April 30, 2010 now have until September 30, 2010 to close the transaction. The president also signed HR 5569, a bill that retroactively reinstates the National Flood Insurance program until September 30, 2010.

The NATIONAL ASSOCIATION OF REALTORS^® (NAR) worked closely with Congressional leaders on both sides of the aisle to enact this important legislation. Extending the tax credit closing deadline will help provide additional stability to real estate markets across the nation.

For additional information on the extension from NAR, click here. For guidance on how to claim the home buyer tax credit, visit www.REALstoryNJ.com/home-buyer-tax-credit.