A New Old Way To Tax New Jersey Property

From the Star Ledger:

A 2-tiered solution to the property tax plight

A regional planning group looking at ways to overhaul the state's property tax system says the best idea is one that dates back more than a century: a two-tiered system that would impose higher taxes on land than buildings.

The Regional Plan Association said the system would discourage sprawl, encourage affordable housing and protect the autonomy of municipalities.

Alexis Perrotta, co-author of the 23-page report, claims it would stop sprawl in it tracks because it would put a premium on taxing land.

"It doesn't cost you any more to build up. But it costs to build out," Perrotta said.
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With New Jersey officials contemplating a major property tax overhaul, perhaps as early as this fall, the commission evaluated several broad reforms mostly aimed at school tax burdens, which make up the lion's share of property tax bills.

Other ideas include varying the school property tax by state planning area, adopting a single school tax rate for the entire state, consolidating all school districts at the county level and charging one county rate, and replacing half the school tax bill with an income tax surcharge.
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Assemblyman Louis Greenwald (D-Camden), chairman of the Assembly Budget Committee, said the idea of a two-tiered tax system, first suggested in 1879 by economist Henry George, is "interesting on its face" but needs more review. "We are at a crisis point and we have to start to address alternatives," he said.