In July 2006, New Jersey’s legislative leaders and Governor Corzine resolved the budget stalemate and approved a budget for fiscal year 2007. The issue of property tax relief was central to the budget negotiations. The compromise that broke the stalemate increases the sales tax to 7 percent and puts half of the one percent increase aside for property tax relief. A constitutional amendment to dedicate the annual revenue from .05 percent of the increase to property tax relief was introduced in both houses. Both houses must wait 20 calendar days before voting on the amendment.This will be a busy summer at the statehouse. Governor Corzine will address a joint session of the Legislature on July 28, the same day legislators are able to vote on the constitutional amendment. This special session of the Legislature will be dedicated to property tax reform.NJAR believes New Jersey homeowners need relief from rising property taxes. For an update from NJAR go to www.njar.com.