Bill > A719

Introduced Session

This bill limits the amount of annual energy tax revenues that the State may retain as general State revenue to the amount the State budget "skimmed" in fiscal year 1998, or $403 million. The remaining balance must be paid out annually to municipalities so as to provide for enhanced property tax relief. In so doing, the bill ensures that, unlike in some years past, New Jersey's municipalities are not shortchanged when energy-sector tax collections grow. The State and its municipalities share energy tax revenues. Recent State budgets have routinely shifted the allocation formula in the State's favor by holding the municipal share flat and apportioning to the State all the revenue growth. The bill breaks this abusive pattern by mandating that the State cannot retain more than the $403 million per year that it "skimmed" in fiscal year 1998 and that any excess amounts are disbursed to municipalities in proportion to each municipality's prior year State aid distribution from this source. The table below illustrates the allocation of annual energy tax revenues between the State and its municipalities under current law. Energy Tax Revenue Allocation between State and Municipalities Fiscal Year State Use Portion Municipal Aid 1998 $403,000,000 (Bill's Cap) $740,000,000 2008 $948,000,000 $789,000,000 2009 $926,000,000 $789,000,000 2010 $844,000,000 $789,000,000 2011 $841,000,000 $789,000,000 2012 $389,000,000 $789,000,000 2013 $436,000,000 $789,000,000 2014 $337,000,000 $789,000,000 2015 est. $321,000,000 $789,000,000 2016 est. $326,000,000 $789,000,000

AI Summary

Committee Categories

DiAnne Gove (R)*,  Brian Rumpf (R)*, 

Introduced, Referred to Assembly State and Local Government Committee (on 01/11/2022)

Official Document