Roche-Inspired Bill Veto Spurs Assemblyman to Consider New Tax Relief Solution

State Assemblyman Ralph Caputo said he was disappointed Gov. Christie vetoed providing tax relief for municipalities losing major businesses.

Caputo sponsored the bill, which passed in both houses of the legislature with strong support from Democrats. It was inspired in large part by the impact the loss of Roche will have on Nutley’s tax base.

“The main issue is that there is no policy where these industries leave and taxes spike dramatically,” Caputo said, who added that Kenilworth and other New Jersey towns and cities are facing similar situations.

Caputo said he didn’t know the reason for the veto but was surprised that Christie struck the law down, as it seemed a good fit for the governor’s support for tax relief.

“It’s disappointing because this was a smart property tax relief measure,” Caputo said.

The legislation was prepared to provide temporary financial relief arising from the Roche closure for Nutley, Clifton and other municipalities that have a similar experience.

Under the bill, municipalities that face a catastrophic drop in their property tax base due to a major business closure or relocation would be eligible for special short–term property tax relief aid to help compensate for the loss of revenue and keep tax rates stable. The bill would appropriate $13.5 million in aid for this purpose.

Caputo and Nutley Commissioner Thomas Evans appeared in Trenton in support of the bill in June. With the bill vetoed, Caputo said Evans and other Commissioners are seeking other relief measures from the state.

Caputo said he still believes strongly in the bill and wants to introduce it again. The next opportunity to introduce the bill is in January.

“There might be some help the administration can offer between now and then and hopefully we can create some legislation the governor’s office will favor,” Caputo said.

Caputo said the bill as a model for legislation in other states facing similar sudden loss of major businesses and industries.

“I think it has national implications,” Caputo said.