A New Jersey company has created a program that rewards residents who shop locally with rewards that are credited to their property tax bills.
Here’s how the card works: when taxpayers shop at participating businesses, they swipe their PTC card. Credits accrue based on a percentage of the amount spent; the result is a corresponding reduction on their annual property tax bill. The actual percentage that each participating business agrees to contribute towards the program varies – percentages range from 1% to a whopping 32% (that would be Papa John’s) though most percentages hover around 10%.
Could it work in Newton?
Absolutely, we’d just need some organization like say maybe the Chamber of Commerce to champion the project. Does anybody around here know anyone in the Chamber of Commerce?
From a quick look at their web site it looks like it could be done with no cost to the city, could boost local businesses, and defray our property tax bills – what’s not to like?
It is certainly worth looking into! Mayor Warren … see http://www.marlboro-nj.gov/mayor_main.html to contact Mayor Hornik for insight!
This seems like a win win for all concerned!
Some thoughts…
Participating businesses must pay for a separate, dedicated terminal (one-time plus monthly plus per-swipe). It would be great if this could be incorporated into existing terminals, like other loyalty cards.
How much would this cannibalize existing local business? A participating pizza shop (which is drawing a local clientele anyway, and not really competing with Amazon or other non-local businesses) will give the rebate to all cardholders, whether or not they have showed up solely because of the property-tax card. How much new business could an inherently local shop (pizza, nails, etc.) attract from this population of card-carrying Newton residents? (The card doesn’t draw customers from neighboring towns.) The card’s main benefit to a business would seem to be in dissuading Newton residents from going to neighboring towns. Businesses would need to compare that gain against their existing base of business from Newton residents.
Tax implications? If a local resident has an $8,000 tax bill and gets $3,000 in property tax credits through this program, what amount can be deducted from Federal taxes — $8,000 or $5,000? I guess $5,000 since the credits are lowering the bill, not paying it.