Water, Water Everywhere – And Now They Want to Tax It!
Posted May 8, 2008

Seventy percent of the earth’s surface is covered by it; as much as 60 percent of the human body is composed of it; every day we must replace almost 2.5 liters of it to keep our bodies functioning well.

And now, New Jersey wants to tax it.

The State Senate Environmental Committee, chaired by Senator Bob Smith (D-Middlesex), is considering a resolution – SCR88 – that would place on the November ballot a constitutional amendment that would impose a tax on water consumption and dedicate the revenue to open space preservation.

If the amendment reaches the ballot and is approved by voters, New Jersey households would pay 40 cents per 1,000 gallons of water used, amounting to approximately $32 per household per year or a statewide annual tax collection of $150 million. According to Smith, “This is not the Legislature imposing a tax.” He emphasizes that “the most important thing is it [the tax] happens only if the people of New Jersey say they want it.” He also seems optimistic that voters will be agreeable to tax, and the Star Ledger reports that Smith “said he thinks most taxpayers would accept the tradeoff in exchange for a permanent fund to buy farmland and new parks.”

Some senators, however, find fault with their colleagues’ mad dash to make tax hikes the deus ex machina for the state’s fiscal woes. Senator Tom Kean (R-Union) stated “I don’t see why raising taxes is always the first option for the Democratic Party. Rather than find a way to live within our means, the Democrats are looking at new ways to raise money and outsource their responsibilities.”

And, Senator Andrew Ciesla (R-Ocean), a member of the Environmental Committee, noted, “The last thing we need is to tax the people of the state more for any reason.”

Unfortunately, many in the legislature seem to think “any reason” is reason enough to impose a new tax on the hardworking – and already overtaxed – taxpayers of New Jersey. Indeed, AP Writer Tom Hester, Jr. notes, “A water tax has been discussed for years, but never implemented amid legislative concern over taxing a staple like water in a state that already has the nation’s highest property taxes and lofty income, corporate and sales tax rates.”

Despite the argument that this would be a voter-approved tax, it still demonstrates the legislature’s misguided mindset that the people of New Jersey should somehow foot the bill for Trenton’s monetary mismanagement extending back over many years. We’ve said it countless times, and we will continue to say it until Trenton changes its ways: the problem is not insufficient revenue; it’s irresponsible spending. And the solution isn’t higher taxes; it’s less spending.

Until our legislatures admit and accept this reality, they will continue to work to squeeze every possible penny out of New Jersey taxpayers.  And remember, once a tax, always a tax. Or, as Senator Smith said about the annual water tax revenues that would fund open space preservation, “That’s a pretty good open space program, and it’s forever.”

 

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