A3463

A Supplement to “An Act making appropriations for the support of the State Government and the several public purposes for the fiscal year ending June 30, 2006 and regulating the disbursement thereof,” approved July 2, 2005 (P.L.2005, c.132).

Be It Enacted by the Senate and the General Assembly of the State of New Jersey:

1. In addition to the amounts appropriated under P.L.2005, c.132, there is appropriated out of the General Fund the following sum for the purpose specified:

22 DEPARTMENT OF COMMUNITY AFFAIRS *70 Government Direction, Management and Control* *75 State Subsidies and Financial Aid* STATE AID
04-8030 Local Government Services...........................................		$200,000,000
*State Aid*:
04 Tax Rate Reduction Award Program………………...	($200,000,000)

The amount appropriated hereinabove shall provide State aid payments in an amount to be divided among qualifying municipalities, each receiving a pro rata share based on population according to the most recent federal decennial census, as a tax rate reduction award to each qualified municipality on or before December 31, 2006. A qualified municipality is a municipality with a population of less than 30,000, according to the latest decennial census, whose equalized municipal purposes tax rate decreased by $0.01 or more between the tax years 2003 and 2005. The Director of Division of Local Government Services shall calculate the equalized municipal purposes tax rate for each municipality in the State for each of the tax years 2003 and 2005 by dividing the actual municipal purposes tax levy, excluding any municipal open space trust fund levy, for each of those tax years by each municipality's 2003 and 2005 amount of net valuation for county tax apportionment for each of those years and multiplying the individual results by 100. The award received under this program shall be used by each qualified municipality solely to offset any debt owed in the current budget year or in a future budget year, or any other current capital budget expenditure, excluding payment for tax anticipation notes. A qualified municipality under the provisions of this act may anticipate its award payment as revenue in preparing its annual budget. Any qualified municipality that is unable to anticipate its award payment as revenue in its current local budget year shall carry forward the award payment as revenue in its next annual local budget year.

2. This act shall take effect immediately.

STATEMENT

This bill would appropriate $200,000,000 to the Department of Community Affairs for municipal State aid payments under a Tax Rate Reduction Award Program to be administered by the Division of Local Government Services. Specifically, the program would provide for a reduction award to each qualified municipality, which is a municipality with a population of less than 30,000, according to the latest decennial census, whose equalized municipal purposes tax rate decreased by $0.01 or more between the tax years 2003 and 2005. The Director of the Division of Local Government Services would calculate the equalized local tax rate for each municipality in the State for each of the tax years 2003 and 2005 by dividing the actual local purposes tax levy, excluding any open space trust fund levy, for each of those tax years by each municipality's 2003 and 2005 amount of net valuation for county tax apportionment for each of those tax years and then multiplying the individual results by 100. The award received under this program, to be paid on or before December 31, 2006, would be used solely to offset any debt owed in the current budget year or in a future budget year or for any current capital budget expenditure, excluding payment for tax anticipation notes. A qualified municipality may anticipate its award payment as revenue in preparing its annual budget or if its payment is received after its annual budget is prepared it shall carry forward the payment as revenue in its next annual local budget year.