ASSEMBLY STATE AND LOCAL GOVERNMENT COMMITTEE
ASSEMBLY, No. 1655
STATE OF NEW JERSEY
DATED: DECEMBER 15, 2016
The Assembly State and Local Government Committee reports favorably Assembly Bill No. 1655.
This bill would include as an exclusion to the property tax levy cap for municipalities, amounts required by law or by agreement that are necessary to provide matching funds required by law, or by agreement, in order for a municipality to receive federal, county, State, independent authority, or nonprofit, funds or grants. Currently, many municipalities are not able to apply for grants and other forms of financial assistance if matching funds are required, because the strict property tax levy cap does not contain room to allow them to raise matching funds. The purpose of this bill is to allow municipalities to raise these funds from property taxpayers by making them an exclusion from the property tax levy cap, since the benefit to the taxpayers from the extra money made available to the municipality outweighs the additional property tax burden from raising the required match.
This bill was prefiled for introduction in the 2016-2017 session pending technical review. As reported the bill includes the changes required by technical review, which has been performed.