Moratorium on Affordable Housing Fee Extended
The extension of a statewide moratorium of a fee assessed on commercial development is another step toward fixing the Democrats’ affordable housing policy enacted in 2008, Senator Steve Oroho and Assembly members Alison Littell McHose and Gary Chiusano, all R-24, said today.
As part of the Democrats’ COAH law, which further stymied economic development without creating affordable housing, Democrats imposed a 2.5 percent fee on commercial development. But just one year later, Democrats admitted their costly mistake by putting a moratorium on those fees.
Acting Gov. Kim Guadagno today signed bipartisan legislation extending that deadline until 2013.
“A 2.5 percent tax on commercial development stymies economic growth and serves as another barrier to job creation, which is unacceptable, especially at a time when 9.5 percent of New Jersey residents are looking for work with a significantly higher unemployment rate being suffered by the skilled trades,” said Oroho. “Projects that bring jobs and investments cannot be saddled with another tax, making New Jersey even more uncompetitive with other states, and making it even harder to reduce our highest-in-the nation property taxes. Enacting a two year moratorium on this tax is a great step, but Alison, Gary and I will continue to work to see it ultimately repealed.”
“This law will help New Jersey’s economy because we need an environment conducive to new job creation, not another tax on construction,” McHose said. “Democrats have twice admitted that their affordable housing tax was wrong and now they should go all the way and eliminate this fee forever.”
Oroho, McHose, and Chiusano applauded the Christie Administration for making sure this fee would not be enacted.
“This administration knows you can’t slap a tax on new construction when New Jersey needs all the economic activity it can get,” Chiusano said. “Admitting that something doesn’t work is always difficult, and now that the Democrats have acknowledged their mistake, advancing from a moratorium to a permanent repeal should be easy.”