The South Amboy City Council discusses Shop Local at the 5/7/14 Business Meeting. *Photo by Mariyah Wojcik

By Mariyah Wojcik –

SOUTH AMBOY- Shop Local, a property tax refund program designed to boost the economies of small towns, has resurfaced as a priority for the city council at the May 7 Business Meeting.

Carmine DeFalco, a representative from Fincredit, Inc. delivered a presentation regarding the details of the “Shop South Amboy” program. Talks between Business Administrator Camille Tooker and DeFalco have taken place over the past month, and the program was described in detail.

“Essentially, people get a refund on their property taxes on the third quarter bill just for shopping locally,” said DeFalco. “Small business owners in the area can offer any percentage rate they choose as a tax credit, and these credits are accumulated by the customer using a property tax card.”

Shop Local programs have been instituted in Marlboro, Highland Park, Pequannock, Bayonne, West Orange, Voorhees, and Verner, and are set to launch in Manalapan and Brick Township this summer, according to DeFalco.

When a customer purchases an item, such as a meal, haircut, or handbag at a participating small business, a percentage of that sale goes towards a property tax refund for the customer. If the customer rents their residence, they are mailed a check at the end of the accumulation cycle for the amount of money that they have collected while shopping locally.

This program is being considered because it has the potential to increase business in South Amboy’s shopping district, according to Tooker. Businesses receive window decals to identify themselves as participants, and they may advertise their participation in other ways as well, such as through social media or in the local newspapers.

The property tax cards, which every customer must present if they wish to accumulate money towards a rebate, are intended to be purchased by South Amboy, at a cost of $1 each. However, this cost may be subsidized by a local bank or credit union if the town can find a willing donor.

DeFalco, having worked closely with other towns beginning this program, stated that approximately 10-15 small businesses would be required to get the program started. There is a $10 per month participation fee for these businesses, but if the program is successful this will be regained in additional profit from increased sales.

“We talked about the fact that South Amboy is small,” said Tooker. This may pose a problem when the Council is attempting to attract businesses to participate in the program, because there is a limited number.

In addition, multiple cards can be registered under the same account, making this program a viable fundraiser for local groups, such as the American Legion. Members can have their cards registered under the organization, and the rebate money may be sent to the group as a check.

The Council is considering the pros and cons of the Shop Local Program, and if approved, it will move forward this summer.