Continuing a welcome trend, lawmakers in a number of states are showing interest in dealing with chronic transportation shortfalls. New Hampshire Gov. Maggie Hassan signed a 4-cent gas tax increase into law, South Dakota Governor Dennis Daugaard announced that he is now open to a gas tax increase, and a Michigan Senate committee passed a bill that would increase and reform their state’s gas tax.
Gov. Christie’s administration recently announced two plans for addressing New Jersey’s $875-million budget gap in the current fiscal year as well as next year’s projected shortfall. Rather than increasing income taxes on millionaires, as some Democrats proposed, Christie said he will reduce the amount of two state pension payments scheduled for June of the current year and 2015. The administration will also push back $400 million of property tax relief due this August until May of 2015. The legally questionable pension payment plan faces a potential lawsuit from state labor unions.
The New York Times recently reported that Madison Square Garden (MSG) has enjoyed an indefinite property tax exemption for the past 32 years, a generous arrangement no other property in the city is afforded. The deal with New York City made in 1982, which then-Mayor Edward Koch thought would last only 10 years, is set to save the MSG’s owners about $54 million in the next fiscal year.
On Wednesday, the North Carolina state Senate voted to give preliminary approval to a bill that prohibits municipalities from collecting privilege taxes from businesses. Signed by Gov. Pat McCrory on Friday, the legislation is set to cost local governments $62 million in fiscal year 2016 if leaders don’t find a revenue replacement. Large cities like Raleigh, which may lose $8 million as a result of the bill, would be particularly hard-hit and may have to resort to raising property taxes.