Bill
Bill > S51
NJ S51
NJ S51Increases distribution to municipalities from Energy Tax Receipts Property Tax Relief Fund over five years to restore municipal aid reductions; requires additional aid to be subtracted from municipal property tax levy.
summary
Introduced
01/09/2018
01/09/2018
In Committee
05/13/2019
05/13/2019
Crossed Over
Passed
Dead
01/08/2020
01/08/2020
Introduced Session
2018-2019 Regular Session
Bill Summary
This bill requires the distribution of additional State aid to municipalities under the "Energy Tax Receipts Property Tax Relief Act." Budget constraints required reductions in the amount of Consolidated Municipal Property Tax Relief Aid (CMPTRA) distributed to all municipalities in Fiscal Years 2009, 2010, and 2011. Some municipalities also experienced reductions in their Energy Tax Receipts Property Tax Relief Aid (ETR Aid) distribution during that period. This supplemental funding would restore, over a five-year period, approximately $331 million in reductions to CMPTRA and ETR Aid. In Fiscal Year 2017, municipalities would receive an aid increase equal to 20% of the difference between their total payment of CMPTRA and ETR Aid in Fiscal Year 2008 and Fiscal Year 2012. Municipalities would receive equal increases in each of the following four fiscal years. The fully restored amount would be distributed beginning in State Fiscal Year 2021 and in each fiscal year thereafter. The total amount of aid to be restored to each municipality would be in addition to the total amount of CMPTRA and ETR Aid distributed to each municipality in Fiscal Year 2012. This legislation also extends the existing ETR Aid "poison pill" protection to ensure that each municipality received an aid amount not less than the combined payment of CMPTRA and ETR Aid to municipalities in Fiscal Year 2012 and the additional aid distributed under the bill. This bill also amends current law to require a municipality to subtract any additional amount of ETR aid it receives, pursuant to the bill, from its adjusted tax levy when computing that amount for its next fiscal year. By deducting the additional amount of ETR Aid from the previous year's levy, municipalities would be permitted to raise a lower amount of taxes through the levy for municipal purposes, thereby benefitting property taxpayers.
AI Summary
This bill requires the distribution of additional State aid to municipalities under the "Energy Tax Receipts Property Tax Relief Act." The bill will restore, over a five-year period, approximately $331 million in reductions to Consolidated Municipal Property Tax Relief Aid (CMPTRA) and Energy Tax Receipts Property Tax Relief Aid (ETR Aid) that were made due to budget constraints in Fiscal Years 2009, 2010, and 2011. Municipalities will receive annual increases in aid, with the fully restored amount distributed starting in Fiscal Year 2021. The bill also requires municipalities to subtract the additional ETR Aid from their adjusted tax levy, allowing them to raise a lower amount of taxes through the levy for municipal purposes, thereby benefitting property taxpayers.
Committee Categories
Budget and Finance, Housing and Urban Affairs
Sponsors (2)
Last Action
Referred to Senate Budget and Appropriations Committee (on 05/13/2019)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| BillText | https://www.njleg.state.nj.us/2018/Bills/S0500/51_I1.HTM |
| Bill | https://www.njleg.state.nj.us/2018/Bills/S0500/51_I1.PDF |
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