Bill > S4691

Introduced Session

This bill repeals sections of law providing for the distribution Energy Tax Receipts Property Tax Relief and Consolidated Municipal Property Tax Relief Aid, and replaces the Energy Tax Receipts Property Tax Relief Aid program with a new initiative, the Municipal Property Tax Relief Program. The bill requires State revenues currently deposited into the Energy Tax Relief Property Tax Relief Fund to be deposited into the Municipal Property Tax Relief Fund and dedicates those revenues to support State aid payments to municipalities under the new program. For State fiscal year 2026, the amount credited to the "Municipal Property Tax Relief Fund" is to be $1,455,000,000 multiplied by the sum of 1.0 and the index rate or zero, whichever is greater. For State fiscal year 2027 and for each fiscal year thereafter, the amount credited to the "Municipal Property Tax Relief Fund" would be equal to the amount credited to the fund in the prior fiscal year, multiplied by the sum of 1.0 and the index rate or zero, whichever is greater. Under the bill, no municipality would receive less than the amount received in Energy Tax Receipts Property Tax Relief Aid in calendar year 2024, or State fiscal year 2025 for a municipality that utilizes a State fiscal year budget cycle. State aid provided to municipalities in excess of $1,455,000,000 would be distributed pursuant to a formula developed by the Commissioner of Community Affairs, as specified in the bill. Similar to the Energy Tax Receipts Property Tax Relief Act, the bill includes a provision providing that if the State does not make the appropriations and distributions required under the bill, the State would forgo the collection of certain corporation business tax revenues from all corporate taxpayers that are not public utilities for that tax year. Amounts distributed to municipalities from the "Municipal Property Tax Relief Aid Fund" in excess of the amount distributed to the municipality from the "Energy Tax Receipts Property Tax Relief Fund" during the State fiscal year 2002 is to be used for the purpose of reducing the amount the municipality is required to raise by local property tax levy for municipal purposes. Under the bill, in any year that certain net payments from specified sources to the State exceed $1.425 billion, 75 percent of the amount in excess of $1.425 billion would be required to be credited to the "Municipal Property Tax Relief Aid Fund" and distributed to municipalities as additional aid.

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Troy Singleton (D)*, 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 06/30/2025)

Official Document