Bill > A2699

Introduced Session

This bill would require the distribution of State aid to municipalities located in whole, or in part, in the Highlands preservation area of the Highlands Region. The Highlands Region was designated in the "Highlands Water Protection and Planning Act," P.L.2004, c.120 (C.13:20-1 et al.), which controls and limits, as appropriate, development in the New Jersey Highlands, an essential source of drinking water for one-half of the State's population, covering portions of 88 municipalities in seven counties, through a regional approach to land use planning and more stringent environmental standards. The Highlands Region consists of a planning area and a preservation area. The law designated a preservation area of the New Jersey Highlands to be subject to stringent standards governing major development. As part of the "Highlands Water and Planning Protection Act," the Legislature included a 10-year State aid program to municipalities located in whole or in part in the Highlands preservation area, to provide these municipalities with funds for the vacant land that was subject to development restrictions. Due to State budgetary restrictions, the FY 2010 Appropriations Act was the last State budget that provided this aid. However, the land in the preservation area is still subject to the permanent development restrictions enacted in the "Highlands Water Protection and Planning Act," and therefore, municipalities located in the preservation area have little ability to approve development projects that will provide property tax relief to property taxpayers. This bill is intended to provide a new, permanent State program to provide property tax relief to the taxpayers in those municipalities located in whole, or in part, in the preservation of the Highlands. This bill would establish the "Highlands Preservation Area Municipal Property Tax Relief Fund" in the General Fund as a special nonlapsing fund for the purpose of providing State aid to qualified municipalities pursuant to the bill. In each State fiscal year, the bill requires that there be credited from the "Highlands Protection Fund" to the "Highlands Preservation Area Municipal Property Tax Relief Fund" such sums as shall be necessary to provide State aid to qualified municipalities. A "qualified municipality" under the bill would be a municipality located entirely in the Highlands preservation area; or a municipality wherein, of the total municipal land area that is located in the Highlands Region, at least 60 percent of that land is located in the Highlands preservation area; and which has conformed its municipal master plan and development regulations to the Highlands regional master plan pursuant to the "Highlands Water and Planning Protection Act." Under the bill, every qualified municipality would be eligible for a distribution from the fund. The bill would set property tax year 2023 (calendar year 2023) as the base year for the calculation of the State aid to be provided under the bill. The bill would require the assessor of every qualified municipality to certify to the county tax board on or before December 1 annually, a report of the assessed value of each parcel of vacant land in the base year and the change in the assessed value of each such parcel in the current tax year attributable to successful appeals of assessed values of vacant land to the county tax board, or attributable to a revaluation approved by the director and implemented or a reassessment approved by the county board of taxation. Upon receipt of these reports, the county tax board would compute and certify to the director on or before December 20 of each year, in such manner as to identify for each qualified municipality the aggregate decline, if any, in the true value of vacant land, comparing the current tax year to the base year. The aggregate changes identified for each qualified municipality would constitute its valuation base. The State Treasurer would certify to each qualified municipality, on or before February 15, its property tax stabilization amount, and the State Treasurer would pay to each qualified municipality its State aid in two equal installments, pursuant to a schedule prescribed by the Division of Local Government Services in the Department of Community Affairs. The bill would require that, in the event the amount available in the "Highlands Preservation Area Municipal Property Tax Relief Fund" in any year is insufficient to pay the full amount to which each qualified municipality is entitled, the payments would be made from the Property Tax Relief Fund.

AI Summary

Committee Categories

Jay Webber (R)*,  Christian Barranco (R),  Brian Bergen (R),  Aura Dunn (R),  Dawn Fantasia (R),  Erik Peterson (R), 

Introduced, Referred to Assembly Environment, Natural Resources, and Solid Waste Committee (on 01/09/2024)

Official Document