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Bill > S2883


NJ S2883

NJ S2883
Includes value of certain properties exempt from taxation in valuation used to calculate State school aid.


summary

Introduced
08/27/2018
In Committee
08/27/2018
Crossed Over
Passed
Dead
01/08/2020

Introduced Session

2018-2019 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 requires the value of property exempt from taxation under the "Long Term Tax Exemption Law" to be included when determining a community's wealth for the purpose of calculating State school aid. Under the current law, the value of such exempt property is omitted from the calculation, which may lead a school district located in a municipality with exempt property to receive a greater amount of State aid at the expense of other districts. The bill aims to ensure a more equitable distribution of State school aid by accounting for the value of all taxable and tax-exempt property in a community.

Committee Categories

Education

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Education Committee (on 08/27/2018)

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