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  • NJ A4607
  • Requires municipality to pay to board of education 5 percent of annual service charge collected under "Long Term Exemption Law" under certain circumstances.
Introduced
(2/27/2017)
In Committee
(6/5/2017)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill would require each municipality which enters into a financial agreement with an urban renewal entity for the undertaking of a project to redevelop all or part of a redevelopment area for residential use to remit 5 percent of the annual service charge collected by the municipality to the board of education of the public school district to which the municipality is required to remit a payment pursuant to R.S.54:4-75. Under current law, counties are paid five percent of the annual service charge that municipalities receive from developers, and boards of education are paid nothing. Municipalities keep the remaining 95 percent of the annual service charge. Boards of education technically are not being "shorted" any property taxes under current law, since they simply provide information about the amount of property taxes that must be collected from property taxpayers to municipalities, which are then required to set the tax rate and collect that property tax revenue from property taxpayers via the property tax bill. Municipalities are required to pay over 100 percent of property taxes collected on behalf boards of education, whether 100 percent of the property taxpayers pay their bills, or not. However, by not collecting any portion of annual service charges on properties that are property tax-exempt under the "Long Term Tax Exemption Law," boards of education, which are required to educate the children who may reside in these property tax-exempt properties, are required to rely more heavily on property taxpayers to pick up those costs through a higher property tax rate. Effectively, all property taxpayers who do not reside in these property tax-exempt properties, are burdened by paying the costs of educational services on behalf of the owners of these property tax-exempt properties. It is the intent of the sponsor of the bill that boards of education share in the revenue generated from annual service charges collected by municipalities from property tax-exempt residential redevelopment projects, in order to provide some property tax relief to local property taxpayers.
2nd Reading in the Assembly
Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations Committee  (on 6/5/2017)
 
 
Date Chamber Action Description
6/5/2017 A Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations Committee
6/5/2017 Assembly State and Local Government Hearing (19:00 6/5/2017 )
2/27/2017 A Introduced, Referred to Assembly State and Local Government Committee
Date Motion Yea Nay Other
Detail 6/5/2017 Assembly State and Local Government Committee: Reported with Amendments 4 0 1