Bill
Bill > A1246
NJ A1246
NJ A1246Requires cost-benefit analyses and local government financial impact findings for approval of long term property tax exemption; requires DCA to post Statewide database of these exemptions on its Internet website.
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
This bill would require an application for a long term property tax exemption to include a cost-benefit analysis and for the mayor or other chief executive officer of the municipality to produce an independent cost-benefit analysis to be submitted along with the application to the municipal governing body before it can decide on the exemption. The bill would also require a municipal governing body to include in its resolution approving or disapproving of a project for which a long term tax exemption is sought specific findings about the net impact of the project on the finances of the directly affected local governments, namely the municipality, county, school district, and other taxing districts within which the project is located. The cost-benefit analyses and financial impact findings required for grants of long term property tax exemptions would have to be posted on the Internet website of the granting municipality. If the municipality does not have a website, this information would have to be provided for public inspection on the Internet website of the Department of Community Affairs (DCA). Municipalities that grant new long term property tax exemptions would have to provide pertinent information about each approved project to DCA, which would post that information, along with existing long term property tax exemption information retrieved from plain language budget summaries submitted to DCA, in a database, sorted by municipality, on its Internet website. This bill would ensure that municipalities consider and evaluate whether an investment in a redevelopment project through the grant of a long term property tax exemption will generate satisfactory revenue returns to the municipality, as well as the financial impacts on counties, school districts, and other local governments. The bill would also allow the public to do the same by making the required cost-benefit analyses and financial impact findings, as well as complete long term property tax exemption information for each municipality, easily accessible on the Internet.
AI Summary
This bill requires that any application for a long-term property tax exemption, which is a tax break granted to a property for an extended period, must include a detailed cost-benefit analysis evaluating the project's financial impact on the municipality, county, and other local taxing districts. Additionally, the chief executive officer of the municipality must conduct and submit their own independent cost-benefit analysis. Municipalities approving such exemptions must also include specific findings in their resolution detailing the net financial impact on these local governments. All these analyses and findings, along with the resolution, must be publicly posted on the municipality's website or, if none exists, on the Department of Community Affairs' (DCA) website. Furthermore, municipalities granting new long-term property tax exemptions must report relevant project information to the DCA, which will then maintain a publicly accessible online database of all such exemptions statewide, including those approved before this bill's enactment, to ensure transparency and informed decision-making regarding these tax incentives.
Committee Categories
Government Affairs
Sponsors (2)
Last Action
Introduced, Referred to Assembly State and Local Government 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/A1246 |
| BillText | https://pub.njleg.gov/Bills/2026/A1500/1246_I1.HTM |
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