IRS Reminds Taxpayers to Take Advantage of Recent Tax Changes
2008 Year End Tax Tips – Latest Tax Changes
NJ-2008-46, Dec. 1, 2008
MOUNTAINSIDE - The Internal Revenue Service wants to remind taxpayers as part of their year end tax planning to be aware of recent tax changes as well as recently reinstated tax deductions.
“Some tax breaks and a review of your current tax situation may result in a bigger refund or less taxes to be paid come tax time,” said IRS Spokesperson Gregg Semanick.
The Internal Revenue Service offers these tax tips for you to consider.
First-Time Homebuyers Tax Credit – First-time homebuyers should begin planning now to take advantage of a new tax credit available for a limited time. The credit applies to primary home purchases between April 9, 2008 and June 30, 2009. This tax credit must be paid back in equal payments over 15 years. The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 for either a single taxpayer or a married couple filing jointly. First-time homebuyers are those who have not owned a home in the three years prior to a purchase.
Real Estate Tax Deduction –There is an additional standard deduction for those who don’t qualify to itemize their tax deductions, but pay real estate taxes. The additional deduction amount is equal to the amount of real estate taxes paid up to $500 for single filers or up to $1,000 for joint filers. This deduction is available for the 2008 and 2009 tax years. This property tax deduction is in addition to the standard deduction used by filers.
Tuition and Fees Deduction - You may be able to deduct qualified tuition and required enrollment fees up to $4,000 that you pay for yourself, your spouse, or a dependent. You do not have to itemize to take this deduction. However, a taxpayer cannot take both the tuition and fees deduction and education credits (Hope & Lifetime Learning Credits) for the same student in the same year. Income limits and other special rules apply to each of these provisions. To determine whether your expenses are qualified, refer to IRS Publication 970, Tax Benefits for Education. IRS Publication 970 also describes other education-related tax benefits.
Educators’ Out of Pocket Expense Deduction - The educator expense deduction allows teachers and other educators to deduct the cost of books, supplies, equipment and software used in the classroom. Eligible educators include those who work at least 900 hours during a school year as a teacher, instructor, counselor, principal or aide in a public or private elementary or secondary school. Worth up to $250, the educator expense deduction is available whether or not the educator itemizes deductions on Schedule A.
Recovery Rebate Credit – If you did not qualify or did not receive the maximum amount for the 2008 Economic Stimulus Payment you may be entitled to a Recovery Rebate Credit when you file your 2008 tax return. Review the tax return filing instructions including the Recovery Rebate Credit worksheet.
Recordkeeping – Are your tax records organized? The IRS encourages taxpayers to take the time now to gather and organize their records to reduce stress at tax time.
IRS.gov Web site - Check out the latest tax changes on the IRS.gov Web site and remember to e-file your tax return which helps ensure you do not miss out on any tax deductions, credits and benefits.
GLORIA NILSON GMAC REAL ESTATE OFFERS ASSOCIATES ‘CONSULTATIVE SELLING’ TRAINING
Program by Steve Woodruff Emphasizes Helping Customers Make Good Decisions
PRINCETON, N.J., Nov. 11, 2007 – Real estate shouldn’t be about earning a commission check, but rather helping customers make a good decision. What may seem a radical idea to some is an established theory at Gloria Nilson GMAC Real Estate. To stress that school of thought, Gloria Nilson GMAC Real Estate is offering its sales associates and branch executives an intensive training program in “Consultative Selling.”
The term, as explained by New Jersey-native Steve Woodruff, refers to relationship selling. Woodruff, owner and president of The Woodruff Group based in Cedar, Mich., will facilitate the five-week course for nearly 80 participants.
Relationship selling requires the real estate professional be an advisor, not a salesperson, Woodruff explains. “Helping clients make good decisions is the goal rather than a commission check,” he says. “Before you can help someone, you first have to understand them. Focus not on the real estate, but the people who live in the real estate.
“Don’t close a sale,” Woodruff says. “Open a relationship.”
Gloria Nilson GMAC Real Estate President and CEO Pat Bell says: “We are always looking for programs and tools to help our agents be successful. Especially in this challenging market, I am excited to offer Steve Woodruff’s winning program to our associates, and proud of everyone that chose to take advantage of it. It is a testament to the team of professionals we have at the company.”
Such personalized service is the focus of Gloria Nilson GMAC Real Estate’s Premier Service®, a revolutionary system that puts customer service guarantees in writing and invites consumers to evaluate their experiences afterward. The company enjoys a knowledgeable, highly skilled sales force in addition to a reputation for maintaining high standards.
For information about joining Gloria Nilson GMAC Real Estate, contact their corporate office at (732) 450-2300. For information about the company’s training offerings, contact Meryl L. Mosack, luxury marketing and training specialist, at mmosack@gnrgmac.com. For information about properties available, visit www.glorianilson.com.
Kaufman Chiropractic – Business Profile
The unique feel of Kaufman Chiropractic is evident the minute patients walk through the door. Painted in warm colors with lots of artwork on the walls, the interior welcomes patients to its family-friendly atmosphere.
Drs. Michael and Heidi Kaufman, have created a unique office atmosphere to complement their unique approach to family chiropractic health. Instead of the more traditional philosophy of being tied to chiropractic visits for life, this husband and wife team believe their job is to get patients healthy first and then help them stay healthy on their own.
“When patients come in, the first thing we do is check for alignment of the spine,” says Dr. Heidi Kaufman. “We start with chiropractic to realign the spine, and then we concentrate on working and strengthening the muscles that hold the alignment in place.”
After the spine has been aligned, patients can use the exercise equipment in the rehab area to strengthen the muscles and then relax in the massage chair.
Kaufman Chiropractic is a full service facility with two chiropractic doctors, two massage therapists, a certified acupuncturist and herbalist, and a Reiki master. Reiki is a Japanese technique administered by “laying on hands” for stress reduction and relaxation; it also promotes healing.
“Every major natural therapy is available right here under one roof,” says Dr. Michael Kaufman. Besides all the services mentioned earlier, Kaufman Chiropractic also offers diet, nutrition and exercise programs, and they make custom orthotics.
The office is even open on Sundays to accommodate the busy schedules of Montgomery families. “It’s actually one of our busiest days,” the doctors say, “but still with a very relaxed atmosphere.”
“We pride ourselves on taking time with each patient, “say the Drs. Kaufman. “Our office is not an assembly line. Even on our busiest days, the atmosphere is comfortable and relaxed. We are never in a hurry to get to the next patient.”
“People like to stay and hang out here after their treatments,” says Andrew Appello, Certified Acupuncturist and herbalist. “They often stay and have a cup of tea and relax, maybe sit in the massage chair. It’s not therapeutic to run in and run back out quickly.”
Kaufman Chiropractic’s patients’ ages range from three days to 100 years old and every age in between. The doctors point out that each age and stage of development requires a different kind of chiropractic touch and technique. And they see not only humans, but animals too. Dr. Michael Kaufman is specially trained by the State of New Jersey to work on animals. A letter from a veterinarian recommending treatment is required before any care administered.
The staff is very excited about their upcoming Holiday Open House on December 16, from 9 am to 7 pm. This is their 5th annual open house, and this year it will benefit a local food bank. People are welcome to bring a non-perishable food item, come in and sample all the services the office has to offer, get a free consultation and meet everyone. They believe it’s a great way for people curious about alternative therapies to check them out and talk to the staff. Refreshments will be served.
In their sixth year at this location, Drs. Michael and Heidi Kaufman enjoy being active members of the community, as evidence by the holiday party they hold every year to benefit a local charity. In addition, Dr. Michael Kaufman is a firefighter and a vice president with Montgomery Township Volunteer Fire Company #2.
Drs. Kaufman make house calls too. In fact, they have been making regular monthly house calls to a group of Hunterdon farmers. It spread to their families and friends. And now it’s turned into a monthly of party, with a pot luck dinner for all.
Kaufman Chiropractic, Montgomery Professional Center on Route 518, 10 Vreeland Drive, Suite 106. For office hours or more information, please call 609-688-9200 or visit the website at www. kaufmanchiropracticnj.com
IRS: Don’t Respond to Rebate E-mail Scam
Protect Your Identity
NJ-2008-44, Nov 17, 2008
MOUNTAINSIDE NJ – The Internal Revenue Service wants you to know there may be a scam waiting in your e-mail inbox that looks very official but is dangerous to you and your computer.
“We’re getting reports of people getting an e-mail that appears to come from the IRS and tells recipients to respond to get their 2008 Economic Stimulus Refund,” said IRS spokesperson Gregg Semanick.
Semanick says there are three things the IRS needs people to remember:
-The IRS never sends unsolicited e-mails about your taxes.
-If you get a scam e-mail, don’t access any links or attachments.
-If you have filed a 2007 federal tax return with the IRS, you don’t need to do anything else to get a stimulus payment. The IRS will take care of the rest.
According to Semanick, if you have accessed a link or attachment in a scam e-mail, you may have allowed the scammer to download malicious software to your computer and you should immediately scan for viruses and spyware, plus be alert for suspicious activity on your financial accounts.
“If you have actually responded to a scam e-mail by giving out your private information,” Semanick said, “you should immediately take steps to prevent identity theft. You may now be a prime target.”
“Taxpayers can help the IRS stop scammers by sending the original scam e-mail to the IRS at phishing@irs.gov. The e-mail must be forwarded using special instructions at IRS.gov or it loses the encoding needed to track it to its source,” Semanick said.
For more information about tax scams, visit www.irs.gov and check out the Dirty Dozen, a list of tax scams updated each year by the IRS. The IRS also provides information on its Web site to help taxpayers protect their personal and financial information. Just type Identity Theft in the key word search feature for additional information
COMMUNITY VOLUNTEER TRADITION OF SERVICE EXCELLENCE
COMMUNITY VOLUNTEER EXEMPLIFIES COMPANY TRADITION OF SERVICE EXCELLENCE
PRINCETON, N.J., Nov. 18, 2008 – Gloria Nilson GMAC Real Estate has long held a tradition of community service inspired by the company’s namesake. Broker/Sales Associate Anne Nosnitsky with the Princeton office is upholding that custom, while also excelling at customer service for her real estate clients.
Nosnitsky has served as a volunteer and member for the Board of Friends of Pennington Library for the past 19 years. Last year she became certified as an English as a Second Language (ELS) instructor and now teaches with Literacy Volunteers in Mercer County.
“I love teaching English,” Nosnitsky says. “Students really light up when they develop a command of the language. It truly empowers them.”
Nosnitsky brings her concept of service to her career, as well. For two consecutive years she has earned the Premier Service® Diamond Award, ranking her among the top GMAC Real Esate agents for customer service. GMAC’s Premier Service® program promises consumers consistent and measurable levels of service, backed by a written guarantee and rated by an independent survey.
“The Premier Service® Award is our most important award,” says Pat Bell, president and CEO of Gloria Nilson GMAC Real Estate. “Premier Service® ensures that all our sales associates put client needs first, and Anne most definitely does this.”
Next year will mark 25 years in real estate for Nosnitsky. Her designations include: Antique Property Specialist through National Trust for Historic Preservation, Certified Corporate Property Specialist, Certified Residential Relocation Specialist and Certified Residential Marketing Specialist. Nosnitsky is a member of the NJAR® Distinguished Sales Club and was recently chosen as a member of her company’s President’s Advisory Council.
The Princeton office of Gloria Nilson GMAC Real Estate is at 33 Witherspoon Street, and can be reached at 609-921-2600. Contact Anne Nosnitsky directly at 609-921-2600 x122 or anosnitsky@gnrgmac.com. For information about properties available, visit www.glorianilson.com.
Township resident Elizabeth “Lisa” Ryan completes intensive REALTOR® training
Prudential New Jersey Properties’ Princeton office associate
earns Graduate REALTOR® Institute designation
PRINCETON, NJ (November 20, 2008) – Prudential New Jersey Properties’ Princeton office associate Elizabeth “Lisa” Ryan – a resident of Montgomery Township – has earned the prestigious Graduate REALTOR® Institute (GRI) designation.
Real estate associates and brokers obtain their GRI designation after completing 90 hours of intensive professional development courses, taught by top industry leaders. The designation is an established symbol of excellence and commitment to client services among professionals.
“Lisa places high importance on continuing education programs to provide clients with the best possible services,” says Carol Mucerino, manager of the Princeton office. “She goes above and beyond for each buyer and seller, while helping each achieve their real estate goals.”
An M.B.A graduate of Rutgers’ Graduate School of Management, Ryan specializes in central New Jersey properties, including Middlesex, Mercer and Somerset counties. She has earned several industry designations and is qualified as a Certified Relocation Specialist, Quality Services Certified, and Senior Real Estate Specialist. Ryan is also a member of the National Association of REALTORS®, New Jersey Association of REALTORS®, as well as the Middlesex and TREND multiple listing services.
More information about real estate in the greater Princeton area is available by contacting Ryan at the company’s 138 Nassau Street location, 609-430-1288, ext 554.
IRS Announces 2009 Standard Mileage Rates
IRS Announces 2009 Standard Mileage Rates for Business, Charitable, Medical or Moving Purposes
IR-2008-131, Nov. 24, 2008
WASHINGTON — The Internal Revenue Service today issued the 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be:
55 cents per mile for business miles driven
24 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than rates for the second half of 2008 that were raised by a special adjustment mid-year in response to a spike in gasoline prices. The rate for charitable purposes is set by law and is unchanged from 2008.
The business mileage rate was 50.5 cents in the first half of 2008 and 58.5 cents in the second half. The medical and moving rate was 19 cents in the first half and 27 cents in the second half.
The mileage rates for 2009 reflect generally higher transportation costs compared to a year ago, but the rates also factor in the recent reversal of rising gasoline prices. While gasoline is a significant factor in the mileage rate, other fixed and variable costs, such as depreciation, enter the calculation.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Revenue Procedure 2008-72 contains additional information on these standard mileage rates.
Princeton Regional Chamber of Commerce Search for CEO/ President
The Princeton Regional Chamber of Commerce announced today that it is conducting a search for its new Chief Executive Officer / President. The Chamber’s current CEO Karen Colimore announced recently that she would be leaving the Chamber to join the New York University Langone Medical Center as Senior Director of Development working in the Cancer Institute.
A presidential search committee has been formed and will be holding meetings under the leadership of Lawrence H. Krampf, Chairman of the Board, Princeton Regional Chamber of Commerce and CEO of Princeton Communications Group, Inc. Assisting Mr. Krampf on the Presidential Search Committee is Karen Jezierny (Princeton University), Anne O’Neill (The Scheide Fund), Melissa Tenzer (CareersUSA), Robert Hillier (RMJM Hillier), Christopher Tarr (Stevens & Lee), Patrick Ryan (Hopewell Valley Community Bank), Kevin Kardos (Paychex) and Kathie Morolda (Cranbury Station Gallery and President of the Borough Merchants for Princeton).
Founded in 1960, the Princeton Regional Chamber of Commerce is a membership organization currently serving 1000 member companies and is the sixth largest Chamber in New Jersey. The Chamber holds monthly luncheon, breakfast, and evening networking meetings, and frequent professional development programs; sponsors the Einstein Lecture Series and an annual trade fair; collaborates with organizations throughout the area to promote economic development and quality of life; participates in a initiatives related to travel and tourism through its Convention and Visitors Bureau; and assists in promoting arts and cultural programs through its “PAACC the House” committee.
The Chief Executive Officer / President is responsible for all aspects of the Chamber’s operations and represents the Chamber throughout the greater Princeton region. The President is ultimately responsible to the Board of Directors.
Lawrence Krampf indicated that “the goal of the presidential selection committee is to present finalists to the Board of Directors for its consideration by year end. The Committee is confident we will be able to hire a highly successful, innovative and collaborative leader to ensure the Chamber’s continued growth and success. The Princeton Regional Chamber of Commerce is a vibrant and growing organization with a strong financial footing, and our Board is committed to continuing the expansion of the Chamber’s programs, activities and initiatives.”
For strongest consideration, resumes and cover letters should be received by November 7, 2008. The Selection Committee requests that interested parties forward their credentials electronically to Lawrence H. Krampf at LKrampf@pcgads.com. A copy of the job description is available by calling Lorraine Holcombe at (609) 924-1776 extension 103.
Business Profile - November: ATME Construction Company
Family-owned and operated, ATMEConstruction Company has been in business for over 16 years and built more than 50 homes in the area. ATME prides itself on delivering what it promises – quality work and attention to detail.
Samir Abi-Atme, owner and civil construction engineer, says, “I have always been handy, and I studied what I have always liked to do. I know what I’m doing, and I produce top-notch work.”
ATME’s specialty is homebuilding from the ground up, but does everything in between, as well: additions, decks, dormers, kitchens, bathrooms, basement remodels, masonry, windows, siding, roofing, painting, leaders/gutters, tile, garages, stucco and more.
Many people hire a construction company based solely on numbers, says Atme, “which is a big mistake in this business.” He says it’s not like going to the grocery store and comparing apple prices; customers need to look at a person’s record and work.
“I live in the area,” says Atme, “and my reputation is important to me. I am pleased to say I haven’t had a single unsatisfied customer.”
Atme’s goal is to make the whole building process easier for his customer. “People are busy; they hire me so they don’t have to deal with ten different people. I take the headaches away from the customer and do all the running around.”
In the past, materials for counter tops, tile, flooring, and many building materials were limited, but now there are limitless choices. Atme keeps an eye on new trends by attending all the trade shows. This translates in bringing the most up-to-date products and services to his customers. Two of the current hottest trends are composite material that can be used for window trim and composite decking. Both are very easy to maintain and last a long time, says Atme.
ATMEConstruction of USA, Inc., 92 County Road 518, Princeton, 609-430-1059. For more information, go to: www.atmeconstruction.com.
Phrog Fitness Studio Announces Its' Grand Opening
Phrog Fitness Studio announces it's grand opening. Located in Research Park across from the Princeton Airport, Phrog offers client only personal training. Phrog, breaking from the gym industry mold, approaches each client as an individual with unique goals and challenges. Through it's focus on progressive exercise in a safe and informed atmosphere, Phrog propels clients toward achieving their personal fitness vision.
Thomas Yannitte, exercise design engineer, published author and wellness coach, is the founder and owner of Phrog Fitness Studio. Thomas has hand picked the best personal trainers on the East Coast. These trainers were chosen for their ability to truly listen and understand the clients' needs and the trainers' innovative styles in meeting those needs. Relationship training of this sort supports the clients in reaching their goals at an accelerated rate because of the efficiency of the system.
At nearly 9,000 sq.ft. Phrog(tm) is one of the most spacious personal training studios in the U.S. It is a complete active fitness spa with a variety of the most innovative equipment including fitness machines developed and designed by Yannitte. The equipment areas, classroom and open floor space is housed in a warm, organic space flooded with natural light. Aesthetically, Phrog(tm) is a peaceful oasis that encourages full attention to the work of wellness.
The Phrog paradigm is founded on the idea that people can change their health without becoming fitness nuts or altering every aspect of their lives. Yannitte says, "It's the little changes that we make over time and implement on a daily basis that make the difference." Departing from fad diet and conventional exercise wisdom, Phrog embodies a holistic approach to fitness and a moderate, long-term philosophy of healthy living, which Yannitte calls "Reality Training", or training for individual, real world lifestyles.
At Reality Training's core is Reality Fitness, which builds upon the concept of multi-plane motion patterns that improve strength, flexibility, balance and core conditioning. This type of fully immersed body training re-establishes the correct balance between mind and body. Phrog(tm) Reality Fitness recruits more muscle groups than traditional strength training, resulting in a much higher caloric expenditure. Reality Fitness also helps restore equilibrium with movements that simulate an individual clients everyday activities, making it a useful tool for rehab patients, active aging members, reconditioned users as well as anyone looking to strengthen the total body and core.
Overall, Phrog presents a more realistic approach to fitness: safe gradual weight loss, improved health and wellness, and greater knowledge of nutritional and exercise needs. Giving clients the tools to make better lifestyle choices yields dramatic results: more energy, greater happiness and an increased sense of control over personal wellness. These results are both reward and incentive - participants feel better, look better, and stick with the program.
"Essentially, Phrog Fitness Studio is an educational center focusing on wellness," Yannitte states. "Clients initially come to learn from the experts at Phrog. They return, and continue to return to Phrog, because of the creativity and motivation put forth by every staff member to aid them in achieving their personal fitness vision"
For more information contact Phrog Fitness Studio(tm) at 609.683.0042 or visit www.phrogfitness.com
Montgomery Unveils Findings of Business Survey
Identifies Ways to Support Local Businesses
The Montgomery Township Economic Development Commission (EDC) unveiled the results of the recently completed Business Retention Outreach Program survey at a business forum and networking event Tuesday. The event, held at the Princeton Elks Lodge, was attended by approximately 50 local business persons. The Synchronist® survey was completed through the cooperation of the Somerset County Business Partnership (SCBP).
Montgomery Mayor Cecilia Birge welcomed the attendees. John Maddocks, a vice president of the SCBP, presented the survey results. Deputy Mayor Brad Fay made conclusive remarks in response to the survey results.
Over the past nine months the SCBP and the EDC interviewed approximately 30 businesses in Montgomery from sole proprietorships to large multi-national corporations. The survey method used was Synchronist®, a web based analysis and tracking tool that supports the collection of data and organizes business related information. JCP&L/First Energy provided a free sub-license to SCBP to use the Syncronist software.
The purposes of conducting the survey were:
1) To build relationships and opens lines of communication between government and business
2) To provide an overview of the economic makeup of the community
3) To identify both immediate and long-term business concerns
4) To provide measures for analyzing the economic health of the community, including growing and declining industries
5) To serve as the basis for policy and regulatory reforms to address critical economic issues
Synchronist® employs a numerical rating system to generate reports that rate a company’s value to the community, growth potential, risk of downsizing, satisfaction with Somerset County as a corporate home, and future employment trends. Additionally, reports are generated indicating community strengths and weaknesses, the business community’s view of municipal and regional services, and the value of a company to the local economy.
Some highlights of the findings:
Location, customer accessibility and quality of life ranked highest among Montgomery’s strengths from a business perspective. Areas which respondents felt could benefit from improvement were transportation, cost of living and business climate.
Highest ranking public services were police, school system and fire protection. Lowest ranking services were public transportation, traffic control and property tax assessment. These results were very similar to findings from surveys previously conducted by the Business Partnership in other Somerset County municipalities.
40% of respondents were dissatisfied on some level with signage regulations in Montgomery while 13% were satisfied and 47% said this caused was no impact on their particular business.
43% of respondents thought that the planned Montgomery Promenade lifestyle center would be good for their business, while 27% didn’t see much impact, 20% thought it would be bad and 10% didn’t know.
In response to the survey findings, Deputy Mayor Brad Fay spoke about some upcoming municipal government priority action items.
He stated that the township plans to advocate for better NJ Transit bus service, particularly from the north since there is no public transit link between Montgomery and the commercial centers in Hillsborough, Somerville, and Bridgewater. This is important to provide access to jobs and shopping for residents, and to provide local businesses with access to shoppers and employees who may live north of Montgomery. Insufficient access to employees was a key issue that was identified in the survey.
The EDC has also begun work to increase its visibility and that of businesses located within Montgomery with a website, with more business networking events, and more direct outreach to local businesses.
According to Deputy Mayor Fay, “The purpose of the business retention survey was to provide local business people with a formal channel of communication to the township through the EDC and we listened. This is helping us pinpoint things that need to be improved.”
He added, “Some of the challenges faced by local businesses--such as traffic circulation—will require longer term efforts to address. We will continue this work while also jumping on some shorter-term opportunities, such as bus service and improved communications.”
Anyone interested in further details on the survey or the Montgomery EDC may contact Chairman Walter Geslak at (908) 874-0333.
Will Stock Market Woes Affect Township Admin?
Following the recent Wall Street unpleasantness, several stories emerged describing the rapid rise of interest rates for bondholders. Princeton University, for instance, saw its bond rate rise from 1.5% to 7 percent, virtually overnight.
According to Township Administrator Donato Nieman, this should not have an immediate affect for Township taxpayers. “When Township Committee authorized $25 million in debt several years ago, we scheduled our cash needs for short term debt, usually one year notes, called bond appreciation notes (BAN). They are like when a builder gets a construction mortgage for a short term, due when the home is built. A bond is more like what a homeowner gets with his home mortgage.
“Once we finish the Skillman Village project, then we will go to the marketplace for bonds at fixed rates. They are tax-exempt municipal bonds. We’ll use those to pay off the BAN’s. Those rates will probably be higher than they have been, however.”
Mr. Nieman warns that the distant future for many municipalities may not be too rosy. “Many of those who work in the financials who had been getting big bonuses won’t be getting them this year. That means lower income tax revenues for the State. And with the take-over of so many of the financials like Merrill Lynch, I can almost guarantee that some of those buildings will be empty this time next year. That means lower property tax income for some towns. For us that means less municipal aid.”
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