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Page 4 THE VILLADOM TIMES I • August 14, 2013
Franklin Lakes
Council speaks out on pending legislation
by Frank J. McMahon
The Franklin Lakes Borough Council has taken posi-
tions on several bills that are currently pending in the New
Jersey Legislature.
Two resolutions passed by the council indicate the gov-
erning body’s support of bills in the Assembly (A3393) and
Senate (S2324) that would protect residential property tax-
payers from the loss of telecommunications tax support.
Those bills would clarify the perceived ambiguity of the
language in the current state law that, according to a trial
court decision, permits a telecommunications company
such as Verizon that is subject to the New Jersey Franchise
and Gross Receipts Tax and the annual Business Personal
Property Tax, to claim an exemption from providing those
revenues to local governments.
Verizon claimed in court that, under the law, it is exempt
from the BPPT in any municipality where the corporation
unilaterally determines that in any given year it no longer
supplies dial tone and access to at least 51 percent of the
local telephone exchanges, and the court agreed.
As a result of that court decision, the council claims
over 100 municipalities will not receive the BPPT revenues
in 2013 and that will cost property taxpayers in excess of
$8 million, and more municipalities will lose millions of
dollars in the future.
The council also supports Assembly bill A1503 and
its companion Senate bill S1896, which would provide for
the sharing of the burden of property assessment appeal
refunds. Those bills would require fire districts, school
districts, and county governments to share the burden of
property assessment appeal refunds to property taxpay-
ers who appeal their tax levies which includes the school,
county, and special district taxes and the municipal tax
levy. The council’s resolution points out that there has been
a spike in tax appeals in recent years caused by the eco-
nomic downturn, and successful tax appeals have a nega-
tive effect on municipalities because, even though a total
tax levy includes the tax levies of a school district and the
county, the municipality must fund the full cost of the legal
defense of an assessment and the full cost of any reim-
bursements resulting from a tax appeal.
All the above bills are currently in New Jersey Assem-
bly or Senate committees.
The council also passed a resolution opposing A2756
and its companion bill, S1469. Those measures aim to
provide workman’s compensation benefits to surviving
spouses. Those bills passed both houses of the legislature
in April and became law on June 13, 2013.
In addition, the council passed a resolution opposing
(continued on page 21)