ASSEMBLY STATE AND LOCAL GOVERNMENT COMMITTEE
ASSEMBLY COMMITTEE SUBSTITUTE FOR
ASSEMBLY, Nos. 326 and 1475
STATE OF NEW JERSEY
DATED: MARCH 7, 2016
The Assembly State and Local Government Committee reports favorably an Assembly Committee Substitute for Assembly Bill Nos. 326 and 1475.
The Assembly Committee Substitute for Assembly Bills 326 and 1475 would provide counties and school districts with notice that a municipality is considering granting long term tax exemptions, and would also require municipalities to share amounts received by urban renewal entities in lieu of property taxes with school districts, including regional school districts.
Under the substitute bill, urban renewal entities would be required to provide counties and school districts with copies of applications for long term tax exemptions. Mayors would be required to provide counties and school districts with copies of the recommendations mayors submit to municipal governing bodies with regard to applications from urban renewal entities. Municipal governing bodies would afford counties and school districts a 10-day period to review mayoral recommendations, within which period counties and school districts could submit their own recommendations. When determining whether to approve an application, a municipal governing body would give due consideration to the concerns of counties and school districts.
The substitute bill would also require municipalities to provide a portion of the amounts received in lieu of property taxation from urban renewal entities to the school district or districts that serves the municipality, including a regional school district. A municipality that receives a payment in lieu of taxation from an urban renewal entity would be required to distribute a portion of the amount received, immediately upon receipt, to the school district or districts, including regional school districts, based upon the distribution of the amount raised by taxation in the taxing district to the school district or districts in the prior year.
Under current law, a municipality must provide 5% of the payment in lieu of taxes to the county.