Property Owners Who Shop Local Could Save Big on Taxes
A new program will reward Portsmouth residents who shop local businesses. City Council Vice President Sean Dunne and Councilman Edwin Martell are proposing a Shop Portsmouth program that would allow shoppers to shave money off their property tax bill by patronizing local businesses. These rebates wouldn’t dip into the city’s tax revenue, the businesses would pick up the cost of the tax rebates.
The program, which is already in place in 26 communities in New Jersey, would benefit both participating merchants and local shoppers according to Councilman Martell. “This program helps merchants increase foot traffic while it also helps residents by providing property tax credits or refunds. A resident who spends money at a participating Portsmouth business would earn 7.5% towards their property tax bill.”
Renters won’t be left out of the rewards, they would be eligible for a 7.5% rebate check at the end of the year.
Businesses Pick Up The Tab
Here’s how it works. Once a town enrolls in the program, they receive a property tax reward card that swipes like a credit or debit card. They can then use that card to accumulate credits when shopping at local businesses.
Participating businesses pay $10 a month to participate in the program and pick up the cost of the rebates, which are charged to them. That means if you make a $100 purchase with a 7.5% rebate, the business will be charged $7.50. That amount will be credited towards the customer’s property tax at the end of the year. Renters would be issued a refund check.
The company says the benefit to businesses is that more people will come through the door and thereby increase sales.
While there’s no fee for cities to participate in the program, the city will have to buy the cards to distribute to citizens. The city is also responsible for marketing materials like window clings, stamps for receipts, and any advertising and marketing in support of the program.
Search for $10,000 Sponsor
Supporters of the program are currently looking for a business to pony up $10,000 to be a sponsor for cards. For that fee, the sponsor’s name will go on the card and will get a banner on the website where participating businesses will be listed. Here’s what the site looks like in Bayonne, New Jersey.
Martell says the program benefits everyone. “The more residents shop in Portsmouth, the more property tax credits they accumulate toward their next tax bill. Merchants get more business; residents get tax credits; the city reduces vacancies, improves the job market, and increases ratables.”
The big question here is how many local businesses feel they can afford to give back 7.5% of every purchase in exchange for increased exposure and foot traffic.
