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Bill may spell relief for flood victims
(by Karen F. Mrnarevic - February 06, 2008)
On Jan. 28, Assemblywoman Charlotte Vandervalk introduced a new bill to the Assembly, No. 1948, to provide tax relief to the victims of the Spring, 2007 nor’easter. The bill, which would offer a sales tax refund on items purchased by residents to replace or repair property lost or damaged as a result of the storm, is a reiteration of an earlier bill introduced by Assemblyman Christopher Bateman in May, 2007. That bill, No. 4176, never made it past the Assembly Appropriations Committee.
Vandervalk said that the committee chairman decides what bills are going to be heard, and so sometimes bills get thrown out. However, she said, “we’ll try to give this a push and see what happens.” In 1999, Vandervalk sponsored a similar bill, later signed into law by Governor Whitman, offering relief to victims of Tropical Storm Floyd.
Between April 14 and 17, 2007, thousands of state residents, including many in the Pascack Valley, suffered financial losses and damages to their homes as a result of a nor’easter, which dropped around 10 inches of rain within a 24 hour period. Then Acting Gov. Richard Cody issued a State of Emergency, and the storm was blamed for three deaths within
New Jersey . While filing for federal disaster relief, Codey indicated that the storm caused $180 million in property damage statewide.
Hillsdale resident Jim Moldow, whose home endured nearly $15,000 worth of damage due to flooding, followed the progress of the bill and became concerned when it stalled. “It hurt me this time,” said Moldow of the storm, “and I had insurance,” whereas, presumably, some people whose homes were damaged may not have had flood insurance.
Several months ago, said Moldow, he began contacting legislators to reintroduce the bill. In January, he sent a letter to the mayor and council of the Borough of Hillsdale, requesting that the council pass a resolution in support of the reintroduction of the bill and present the resolution to District 39 legislators. According to Hillsdale Mayor John Sapanara, “The council will probably consider a resolution in support of this bill at one of the council meetings in February.”
Vandervalk hinted that the state should look favorably on the bill for various reasons, not the least of which being that “the state will not be losing money… If there had been no flood, money would not have been spent.” Therefore, the sales tax from the sales of replacement appliances and building materials would never have been generated.
“We [the state] aren’t funding the cost of the items, just the sales tax,” said Vandervalk. She cannot venture a guess at how long it will take before the bill gets signed into law. “Sometimes, it can take close to two years,” she said. Moldow seems hopeful that it will happen sooner than that. “I’m kind of a squeaky wheel… I keep prodding and pushing to get it passed,” he said.
Hillsdale resident Rich Harada, whose home is not located in a flood prone area and was not covered by flood insurance, suffered substantial damage due to the nor’easter. He said that after the storm, water seeped into his basement through the walls and floor, causing structural damage and ruining carpeting and possessions such as art and children’s toys. Harada pointed out that the flooding in his home was completely unprecedented. “We built the house,” he said, “and had not experienced any water in 11 years.”
He said that he was forced to pump the water out of the basement for 10 days. Not wanting to take out loans to pay for the repairs, which cost numerous tens of thousands of dollars, Harada said that he had to dip into his family’s savings.
“It’s an embarrassing amount of money. When I think of what I had to do to get this money, I cringe.” And his work is not yet done. “We still have one retaining wall that we have to have redone. It’s safe enough right now, but should be replaced,” he said. “As long as things are safe and manageable, I’d rather delay until I have the resources myself [instead of taking out loans].”
At the urging of Moldow, Harada applied to FEMA and the Small Business Administration for financial relief. Although it set his mind at ease, Harada said, in terms of financial relief, “it was very minor.”
He believes the bill is a step in the right direction, and an economically feasible choice for the state. “Tax relief is not a handout,” he said, but rather a gesture that acknowledges the pain homeowners go through in situation like this. “Hopefully we can all recoup and move on,” he said.
Karen F. Mrnarevic's e-mail address is Mrnarevic@northjersey.com.
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