Business Owners Meet to Discuss Property Tax Reward Program

COURT HOUSE – Dozens of local business owners gathered at the Samuel Devico Senior Center March 26 for a presentation of an innovative, proposed property tax reward program. The presentation, sponsored by the Middle Township Economic Development Committee, was conducted by Carmine DeFalco, owner of Fincredit Inc., the program administrator. The idea is to incentivize local shopping by offering residents rebates on purchases made at participating merchants. The rebates would then be credited to the residents’ tax bill each year.
The township, with the help of business sponsorship, purchases the actual cards at $1 each. Cards would be distributed to residents, linked to their tax bill by block and lot numbers. Every time a resident conducts a transaction with a participating merchant, the rebate is credited to their property tax reward card. The amount of the rebates are determined by each merchant, and varies widely based on the type of business. Fincredit Inc. keeps 25 percent of the rebate for administration, with the other 75 percent being credited to the resident’s property tax bill. The cost for participating businesses is $10 per month, plus the cost of the rebate the merchant chooses to offer. There is no cost to residents who wish to participate.
Residents and those who work in the township but do not own property, can also participate. Instead of crediting the rebates to a property tax bill, those rebates will be distributed in a check cut to the account holder annually. DeFalco said this is important, especially in Middle Township.
“You have a hospital here; many of those employees may not live in town. We want them to spend money here before going home,” said DeFalco.
Fincredit Inc., a New Jersey corporation, has been in operation since 2010. Currently, eight municipalities use the property tax reward program, such as Marlborough, Bayonne, West Orange and Vorhees. Glassboro is also planning to roll out the program later this year. DeFalco said that the 300 New Jersey businesses participating have seen a sales increase of 4.5 percent, and a customer retention rate increase of 15.5 percent.
DeFalco, a resident of Marlborough Township said that in the first seven months, he personally saved $420 on his property tax bill, and anticipates this year’s savings to be over $800. Marlborough Township has 3,500 households participating, for a total of over $65,000 in tax rebates issued.
“Getting people to shop locally is a priority,” said Middle Township Committee Member Michael Clark. “If the interest is there within the business community, it sounds like a great program. We’re always looking for ways to help our local economy.”
Fifteen to twenty businesses would need to be enrolled in order to kick off the program, as well as approval of Township Committee.
Business owners who would like more information are encouraged to contact Carol Struett, Chair of the Middle Township Economic Development Committee at (609) 465-8732. Information can also be obtained via Fincredit’s website at www.propertytaxcard.com.
To contact Don Tozer, email dtozer@cmcherald.com.