Governor of New Jersey Seeks Rise in Rebates.

Byline: John Dyer

Apr. 29--TRENTON, N.J. -- Nearly 200,000 middle- and working-class families in North Jersey stand to receive rebate checks as high as $800 under a property tax relief plan Governor McGreevey will unveil before a special session of the Legislature today.

The governor will propose a sweeping restructuring of the state's rebate programs that would feature a new two-tiered system for the suburban middle class -- his core constituency that catapulted him to power in 2001.

It calls for sending the $800 checks to most homeowners earning less than $125,000, and $500 checks for homeowners earning between $125,000 and $200,000, an administration source told The Record.

McGreevey will also propose a windfall for senior citizens, another powerful voting bloc. His plan calls for boosting the maximum amount they can receive from $775 to $1,200.

The governor will propose to pay for the fattened checks by creating a new tax rate on the income of New Jersey's wealthiest residents. Under the proposal that has been dubbed the "millionaire's tax," residents who earn $500,000 or higher would be taxed at 8.97 percent; New Jersey's current top bracket is 6.37 percent for singles earning more than $75,000 and households earning more than $150,000.

Administration officials would not disclose other aspects of the proposal, such as whether the larger checks are for a limited, two-year period; when the plan will be formally introduced as legislation; or whether they intend to consolidate the two major rebate programs into one. But they said McGreevey's plan would include cost controls for town councils and school districts. "We understand we can't just give out checks to people," a source said. "We need reform also."