Senator TROY SINGLETON
District 7 (Burlington)
Requires municipalities to file copies of tax abatement and exemption agreements with county chief financial officer and county counsel within 10 days of execution.
CURRENT VERSION OF TEXT
An Act concerning the filing of certain financial agreements and amending P.L.1991, c.441.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 11 of P.L.1991, c.441 (C.40A:21-11) is amended to read as follows:
11. a. All tax agreements entered into by municipalities pursuant to sections 9 through 12 of P.L.1991, c.441 shall be in effect for no more than the five full years next following the date of completion of the project.
b. All projects subject to tax agreement as provided herein shall be subject to all applicable federal, State and local laws and regulations on pollution control, worker safety, discrimination in employment, housing provision, zoning, planning and building code requirements.
c. That percentage which the payment in lieu of taxes for a property bears to the property tax which would have been paid had an exemption and abatement not been granted for the property under the agreement shall be applied to the valuation of the property to determine the reduced valuation of the property to be included in the valuation of the municipality for determining equalization for county tax apportionment and school aid during the term of the tax agreements covering the properties, and at the termination of an agreement for a property the reduced valuation procedure required under this section shall no longer apply.
d. Within  10 days after the execution of a tax agreement, a municipality shall forward a copy of the agreement to the [Director of the Division of Local Government Services in the Department of Community Affairs,] the chief financial officer of the county, and the county counsel.
(cf: P.L.2007, c.268, s.4)
2. Section 21 of P.L.1991, c.441 (C.40A:21-21) is amended to read as follows:
21. The governing body of a municipality adopting an ordinance pursuant to this act shall report, on or before October 1 of each year, to the Director of the Division of Local Government Services in the Department of Community Affairs and to the Director of the Division of Taxation in the Department of the Treasury, the chief financial officer of the county, and the county counsel the total amount of real property taxes exempted and the total amount abated within the municipality in the current tax year for each of the following:
a. improvements of dwellings;
b. construction of dwellings;
c. improvements and conversions of multiple dwellings;
d. improvements of commercial or industrial structures;
e. construction of multiple dwellings under tax agreements; and
f. construction of commercial or industrial structures under tax agreements.
In the case of e. and f. above, the report shall state instead the total amount of payments made in lieu of taxes according to each formula utilized by the municipality, and the difference between that total amount and the total amount of real property taxes which would have been paid on the project had the tax agreement not been in effect, for the current tax year.
The Director of the Division of Taxation shall include a summary of the information provided in the annual reports in the annual report of the division.
(cf: P.L.1991, c.441, s.21)
3. This act shall take effect immediately.
This bill would require municipalities to file copies of all financial agreements permitting short-term property tax abatements and exemptions with the county chief financial officer and county counsel, within 10 days of adoption. Agreements permitting short-term property tax abatements are now required to be filed with the Division of Local Government Services in the Department of Community Affairs.