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Bill > S981


NJ S981

NJ S981
Permits board of education to accept donations for purpose of providing property tax relief.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill authorizes the board of education of any school district to establish a school property tax relief trust fund by resolution. Any trust fund established pursuant to this bill must be used solely for the purpose of reducing or offsetting the amount of property taxes to be collected by the municipalities comprising the school district. The board of education by a majority vote must select a trustee to serve as the fiduciary agent of the trust fund. The trustee has the responsibility of remitting to the tax collector the amount of funding being made available for any school year for the purpose of reducing the amount to be collected in local property taxes. The Division of Investment in the Department of the Treasury will provide advice, counsel, and any assistance to any school board in establishing a school property tax relief trust fund.

AI Summary

This bill allows a school district's board of education to create a "school property tax relief trust fund" to accept donations, such as bequests and gifts, specifically for the purpose of lowering or offsetting the property taxes residents pay to fund the school district. The board must pass a resolution to establish this fund and will select a trustee, who cannot be a board member or school employee, to manage it. The Division of Investment within the Department of the Treasury will offer guidance and assistance to school boards in setting up and managing these trust funds, including advice on investments. The trustee's role is to distribute the funds to the local tax collector each school year, who will then reduce the total property tax collection by that amount. The bill also requires that any funding received through this new trust fund be disclosed in the school district's budget and public hearing notices.

Committee Categories

Education

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Education Committee (on 01/13/2026)

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