Property Tax, State and Local Taxes and the New Jersey Constitution ******* Supplemental Slides

Transcription

1 Property Tax, State and Local Taxes and the New Jersey Constitution ******* Supplemental Slides Joint Committee on Constitutional Reform and Citizens Property Tax Constitutional Convention August 2006 Office of Legislative Services

2 Contents of Supplemental Slides: Prepared in Response to Committee Question Pages : : Income tax, sales tax and combined tax impacts over 30 years in the same format as property tax display in original presentation. Page 11: : Three major components of property tax over 30 years. Pages : : Taxpayer impact illustrations from the origin presentation, with the effect of the Homestead Rebate removed. Pages : : Income tax data distributed by income grou from TY1998 to TY2003 using Division of Taxation data. (Note chart on page 19 includes OLS estimates for TY2004 and TY2005.) Pages : : Background data detail for each Tax Year between TY1998 and TY2003. TY2004 and TY2005 data are not yet released.

3 Total Property Tax Levy Per Capita (Statewide, ) Tax Levy Per Capita Per Capita Property Tax Levy Adjusted for CPI Inflation $2,500 $2,000 $1,500 $1,000 $500 $ Year

4 Total Property Tax Levy as a Percent of Personal Income (Statewide, ) 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Year

5 Total Income Tax Levy Per Capita (Statewide, FY ) Income Tax Per Capita Per Capita Income Tax Levy Adjusted for CPI Inflation $1,200 $1,000 $800 $600 $400 $200 $ Fiscal Year

6 Total Income Tax Levy as a Percent of Personal Income (Statewide, FY ) 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Fiscal Year

7 Total Sales Tax Levy Per Capita (Statewide, FY ) Sales Tax Per Capita Per Capita Sales Tax Levy Adjusted for CPI Inflation $800 $700 $600 $500 $400 $300 $200 $100 $ Fiscal Year

8 Total Sales Tax Levy as a Percent of Personal Income (Statewide, FY ) 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Fiscal Year

9 Total Property, Income and Sales Tax Levy Per Capita (Statewide, FY ) $4,500 Property, Income, and Sales Taxes Combined Per Capita Property, Income, and Sales Taxes Combined Per Capita Adjusted for CPI Inflation $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $ Fiscal Year

10 Total Property, Income and Sales Tax Levy as a Percent of Personal Income (Statewide, FY ) 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Fiscal Year

11 Property Tax Levy Component Percentages of Total Levy (Statewide, ) County Tax Levy Municipal Tax Levy School Tax Levy 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Year

12 Taxpayer Impact Illustrations Three households in identical homes on the same street. Each worth $7,000 in local property tax. Tax burdens can vary significantly

13 Taxpayer Impact Illustrations (continued) 1. Family of four. Income $90,000. $7,000 property tax (7.8% of income). $1,575 State income tax (1.8% of income). Net taxes of $8,575 = 9.5% of income.

14 Taxpayer Impact Illustrations (continued) 2. Retired couple. Mostly pension and S.S. income $40,000. $7,000 property tax less $85 for 2 years of senior freeze benefit = $6,150 (15.4% of income). Pay $0 State income tax. Net taxes of $6,150 = 15.4% of income.

15 Taxpayer Impact Illustrations (continued) 3. High income individual. Income $400,000. $7,000 property tax (1.8% of income). $22,844 State income tax (5.7% of income). Net taxes of $29,844 = 7.5% of income.

16 Taxpayer Impact Illustrations (Summarized) $90,000 income $8,575 comb. tax 9.5% tax burden $40,000 income $6,150 comb. tax 15.4% tax burden $400,000 income $29,844 comb. t 7.5% tax burden

17 Number of Income Tax Filers by Income Group Tax Years 1998 to 2005 (est.) 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 Above $500,00 $100,000-$500 $50,000-$100,0 Under $50, ,

18 Income Tax Payments by Income Group Tax Years 1998 to 2005 (est.) $7,000,000 $6,000,000 $ 000's $5,000,000 $4,000,000 $3,000,000 $2,000,000 Above $500,00 $100,000-$500 $50,000-$100,0 Under $50,000 $1,000,000 $

19 Percentage Distribution of Income Tax Payments by Income Group Tax Years 1998 to 2005 (est.) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Est Est Above $500,00 $100,000-$500 $50,000-$100,0 Under $50,000

20 TY 1998 Data from SOI Table B: Full Year Taxable Returns Summary NJ Taxable Income Returns Gross Income Net Charged Tax Returns Income Charged $ in Thousands $ in Thousands Percent Percent Per Under $50,000 1,798,883 $48,753,233 $574, % 24.7% 11 $50,000-$100, ,167 $52,695,298 $941, % 26.7% 18 $100,000-$500, ,027 $61,887,355 $1,960, % 31.4% 38 Above $500,000 23,658 $33,939,477 $1,591, % 17.2% 31 Totals 2,886,735 $197,275,363 $5,067, % 100.0% 100

21 TY 1999 Data from SOI Table B: Full Year Taxable Returns Summary NJ Taxable Income Returns Gross Income Net Charged Tax Returns Income Charged $ in Thousands $ in Thousands Percent Percent Per Under $50,000 1,640,675 $46,080,301 $562, % 22.8% 10 $50,000-$100, ,784 $58,178,674 $976, % 28.8% 17 $100,000-$500, ,880 $64,237,564 $2,231, % 31.8% 39 Above $500,000 26,908 $33,211,834 $1,835, % 16.5% 32 Totals 2,786,247 $201,708,373 $5,606, % 100.0% 100

22 TY 2000 Data from SOI Table B: Full Year Taxable Returns Summary NJ Taxable Income Returns Gross Income Net Charged Tax Returns Income Charged $ in Thousands $ in Thousands Percent Percent Per Under $50,000 1,451,642 $43,853,756 $514, % 19.1% 7 $50,000-$100, ,848 $54,325,271 $993, % 23.7% 15 $100,000-$500, ,806 $78,002,555 $2,489, % 34.0% 38 Above $500,000 32,283 $53,248,743 $2,513, % 23.2% 38 Totals 2,647,579 $229,430,325 $6,511, % 100.0% 100

23 TY 2001 Data from SOI Table B: Full Year Taxable Returns Summary NJ Taxable Income Returns Gross Income Net Charged Tax Returns Income Charged $ in Thousands $ in Thousands Percent Percent Per Under $50,000 1,368,800 $43,772,583 $545, % 20.0% 9 $50,000-$100, ,700 $58,052,448 $1,063, % 26.5% 18 $100,000-$500, ,900 $77,603,259 $2,418, % 35.4% 42 Above $500,000 28,000 $39,561,316 $1,683, % 18.1% 29 Totals 2,584,400 $218,989,606 $5,710, % 100.0% 100

24 TY 2002 Data from SOI Table B: Full Year Taxable Returns Summary NJ Taxable Income Returns Gross Income Net Charged Tax Returns Income Charged $ in Thousands $ in Thousands Percent Percent Per Under $50,000 1,407,000 $45,928,547 $583, % 21.6% 10 $50,000-$100, ,700 $57,519,199 $1,064, % 27.0% 19 $100,000-$500, ,900 $77,859,806 $2,426, % 36.6% 44 Above $500,000 25,500 $31,667,765 $1,373, % 14.9% 25 Totals 2,597,100 $212,975,317 $5,447, % 100.0% 100

25 TY 2003 Data from SOI Table B: Full Year Taxable Returns Summary NJ Taxable Income Returns Gross Income Net Charged Tax Returns Income Charged $ in Thousands $ in Thousands Percent Percent Per Under $50,000 1,403,100 $46,080,301 $560, % 21.0% 9 $50,000-$100, ,300 $58,178,674 $1,082, % 26.6% 19 $100,000-$500, ,080 $81,619,513 $2,553, % 37.3% 45 Above $500,000 27,025 $33,211,834 $1,446, % 15.2% 25 Totals 2,618,505 $219,090,322 $5,642, % 100.0% 100