N.J. Gov. Christie warns Sandy may force tax hikes

TRENTON, N.J. New Jersey Gov. Chris Christie is warning residents in storm-damaged towns that their property taxes are likely to rise.

One of the exemptions in the state's 2 percent tax cap law is an emergency like Superstorm Sandy.

Christie says towns can maximize their federal reimbursement for storm cleanup costs by contracting with a state-approved firm. But he says storm-related costs that aren't reimbursed by FEMA will likely be passed along to taxpayers.

"It's got to be paid for," Christie said, according NJ.com. "This goes back to the old magic money tree. There's no magic money tree."

The governor says residents in hard-hit towns will help rebuild their towns by paying higher taxes.