Is Revenue Loss to Upper Township True?

To the Editor:
March 11, Sen. Jeff Van Drew stated in a published report that “losing the (B.L. England) plant would result in property tax increases.” He also added, “In addition, Upper Township would lose the energy receipts taxes that it receives from the plant.” Van Drew restated this claim in an article posted in the Cape May County Herald March 20.
The Energy Receipts Property Tax Relief Fund is a government funding program that receives monies from many places including sewerage, water and energy companies and lines that provide these utilities. The monies originally were sent to each municipality, then at some point changed sending the funds to the state to be distributed to every municipality. Over the years governors and the legislature have kept portions of the funds to compensate for budgetary shortfalls. Upper Township received $6.2 million in 2012 , 2013 and has budgeted for that same amount in 2014.
According to Local Government Services within the Department of Community Affairs, all municipalities get energy tax receipt dollars and the amount will not change for Upper Township no matter what happens to the plant. It is the zoning of the property that reflects what the township and county receives in taxes. RC Cape May Holdings currently pays $370,050 in property taxes for the plant site.
This will not change whether the B.L. England Plant is open or closed. The local property taxes paid by the owners of the plant won’t change because the assessed value is not based on the profitability of the plant.
If at some time in the future, the B.L. England plant shuts down, the site can be repurposed for wind energy distribution or other commercial industrial development, or even converted to open space which would have little to no cost on the municipality and lessen the burden for municipal services. As open space it would increase the value of all the properties surrounding the plant.
Loss in Revenue to Upper Township from B.L. England fact or fiction
To the Editor:
March 11, Sen. Jeff Van Drew stated in a published report that “losing the (B.L. England) plant would result in property tax increases.” He also added, “In addition, Upper Township would lose the energy receipts taxes that it receives from the plant.” Senator Van Drew restated this claim in an article posted in the Cape May County Herald March 20.
The Energy Receipts Property Tax Relief Fund is a government funding program that receives monies from many places including sewerage, water and energy companies and lines that provide these utilities. The monies originally were sent to each municipality, then at some point changed sending the funds to the state to be distributed to every municipality. Over the years governors and the legislature have kept portions of the funds to compensate for budgetary shortfalls. Upper Township received $6.2 million in 2012 , 2013 and has budgeted for that same amount in 2014.
According to Local Government Services within the Department of Community Affairs, all municipalities get energy tax receipt dollars and the amount will not change for Upper Township no matter what happens to the plant. It is the zoning of the property that reflects what the township and county receives in taxes. RC Cape May Holdings currently pays $370,050 in property taxes for the plant site.
This will not change whether the B.L. England Plant is open or closed. The local property taxes paid by the owners of the plant won’t change because the assessed value is not based on the profitability of the plant.
If at some time in the future, the B.L. England plant shuts down, the site can be repurposed for wind energy distribution or other commercial industrial development, or even converted to open space which would have little to no cost on the municipality and lessen the burden for municipal services. As open space it would increase the value of all the properties surrounding the plant.
(ED. NOTE: The author is director, monitoring programs for the Pinelands Preservation Alliance.)