Shop Local, Save Money on Taxes in West Orange

The West Orange Council approved the first steps of a new Property Tax Program to encourage residents to locally in Tuesday night's meeting.

The new initiative will give residents discounts at local participating businesses in the form of an annual property tax credit for West Orange property owners. The approved resolution allows the township to move forward to find sponsors for the program to start within the next few months. 

Administered by Fincredit Inc., the program will use a reward card, sponsored by a local bank or business, that will track residents' purchases throughout town. When people shop at a local business, the card will be swiped and a percentage of the purchase will go a reduction in property taxes.

The discount percentage will be decided by each business and 25 percent of that amount collected will go to Fincredit Inc. For example, if a business decided to give a 10 percent discount if resident will receive $.75 back on a $10 purchase after $.25 fee paid to Fincredit Inc.

Renters and people who work in town register their reward card online and can take part in the program but will receive a refund check annually.

Mayor Robert Parisi explained the program will not be paid for by taxpayers. Sponsors will cover for the start up costs of the program, which include manufacturing of cards, about $1 each, with the sponsors name on it and distribution of the cards. 

Fincredit Inc. has approached a hand-full of townships throughout New Jersey so far, including Caldwell, Pequannock and Bayonne, and has been active in Marlboro for the last seven months. 

In the presentation Fincredit Inc. gave to the council, businesses in Marlboro showed an increase of 4.6 percent in business's sales and more than 15 percent increase in customer retention with little dropout rates from businesses.

Additionally, costs for local businesses are minimal, $50 or $160 for the reward card reader and monthly fee of $10. Businesses can also manually enter sale information online for free. 

"I don't know anyone that has been opposed to the program," local business owner Roger Schneider of Schneider Hardware, 276 Main Street, said. "It is a very creative and valuable tool the help create pride about shopping local."

The township will cover the start-up costs for the first 25 businesses that sign up, paid for by sponsors of the program, Parisi said

He added, "We're trying to get businesses signedup."