TRENTON, NJ — U.S. Rep. Josh Gottheimer, a Democrat running for governor of New Jersey, unveiled a proposal aimed at slashing property tax burdens for newcomers by allowing them to pay the same rate they paid in their previous state, part of a plan to make the state more attractive for relocation.
That could mean higher taxes for the rest of New Jersey, including those who have lived here their entire lives. Like most blue-state feel-good plans, the ramifications have not been well thought out.
In a campaign document, Gottheimer declared his intent to make New Jersey the first “property-tax neutral” state in the country. The plan would allow new residents to retain the same property tax rate from their previous state for five years.’
Instead of pledging to lower everyone’s taxes, Gottheimer says tax breaks are only for the New Jersey newbies. Somebody is either going to have to make up the differences under this plan, or cops will have to be fired, teachers laid off, and even more schools closed.
“If you move here from New York, for instance, where you may be paying, on average, 1.40% on your home, you’ll be able to keep paying that rate in New Jersey,” Gottheimer stated.
The proposal is designed to counter New Jersey’s status as one of the highest property-tax states in the country and encourage economic migration. According to Gottheimer, residents from lower-tax states such as Delaware or Hawaii would also pay their original home state’s lower rate upon moving to New Jersey.
Gottheimer noted that after a five-year transition period, tax rates would gradually align with New Jersey’s standard property tax rate. The campaign estimates that this temporary cut would save a new resident over $16,000 over five years, and generate nearly $5,500 per year in new revenue from personal income and sales taxes.
Campaign touts economic benefit, long-term gains
Framing it as a pro-growth policy, Gottheimer said the move could recapture millions in lost tax base and GDP by enticing families earning over $100,000 per year to relocate and stay in New Jersey.
Key Points
- Josh Gottheimer proposes allowing new NJ residents to pay the property tax rate from their previous state.
- The five-year “property-tax neutral” plan aims to make NJ competitive with states like Delaware and Hawaii.
- Campaign estimates $16,419 in average tax savings per new resident over five years.
Gottheimer claims the plan would bring in billions in economic activity while reversing the state’s long-standing outmigration trend.
