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Bill > S56
NJ S56
NJ S56Includes value of certain properties exempt from taxation in valuation used to calculate State school aid.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
Under current law, a school district's State aid is determined, in part, by the district's capacity to raise revenue locally, as measured by the community's equalized property valuation and aggregate income. In the case of property that is exempt from taxation under the "Long Term Tax Exemption Law," P.L.1991, c.431 (C.40A:20-1 et seq.), the value of the property is omitted from the calculation. This may lead a school district that is located in a municipality with exempt property to receive a greater amount of State aid at the expense of other districts. This bill requires that the value of property exempt from taxation under that law be included when determining a community's wealth for the purpose of determining State school aid.
AI Summary
This bill amends existing law to include the value of certain properties that are exempt from taxation under the "Long Term Tax Exemption Law" (P.L.1991, c.431) when calculating a school district's State aid. Currently, the value of these exempt properties is omitted from the calculation of a community's wealth, which is a factor in determining how much State aid a school district receives. This omission can lead to districts with exempt properties receiving more State aid than they might otherwise, potentially at the expense of other districts. By including the value of these exempt properties, the bill aims to create a more equitable distribution of State school aid by more accurately reflecting a community's overall financial capacity.
Committee Categories
Education
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Education Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S56 |
| BillText | https://pub.njleg.gov/Bills/2026/S0500/56_I1.HTM |
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