ASSEMBLY, No. 2520

STATE OF NEW JERSEY

INTRODUCED DECEMBER 5, 1996

By Assemblywoman ALLEN and Assemblyman DeSOPO

An Act dedicating for the Legislative Initiative Municipal Block Grant Program certain increased gross income tax revenues certified to be collected that are in excess of those collected for the prior fiscal year, amending P.L.1995, c.247.

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

    1. Section 1 of P.L.1995, c.247 (C.52:27D-181.1) is amended to read as follows:

    1. a. There shall be appropriated annually by the Legislature for each State fiscal year an amount not less than $33,000,000 for the Legislative Initiative Municipal Block Grant Program. The amount appropriated shall be distributed to municipalities on or before September 1 of the State fiscal year in proportion to the number of residents of each municipality as determined pursuant to the most recent federal decennial census. The payment of Legislative Initiative Municipal Block Grant Program aid shall be used solely and exclusively by each municipality for the purpose of reducing the amount the municipality is required to raise by local property tax levy for municipal purposes. If the amount of the payment exceeds the amount required to be raised by local property tax levy for municipal purposes, the balance of the payment shall be used to reduce the amount the municipality is required to collect for county purposes, notwithstanding the provisions of this or any other law to the contrary. The Director of the Division of Local Government Services in the Department of Community Affairs shall certify annually that each municipality has complied with the requirements set forth herein.

    b. In addition to the amount required to be appropriated pursuant to subsection a. of this section, there shall be appropriated annually for the Legislative Initiative Municipal Block Grant Program, the amount of $41,000,000, or if the increase is less than $41,000,000, such less amount, from the increase in the amount of gross income tax revenue estimated to be collected as certified by the Governor upon approval of the annual appropriation act for the current fiscal year over the actual revenue collections pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for the fiscal year immediately preceding the fiscal year in which the appropriation shall be made.

(cf: P.L.1995, c.247, s.1)

    2. This act shall take effect immediately.

STATEMENT

    This bill dedicates for property tax relief to municipalites up to $41,000,000 in increased gross income tax revenue estimated to be collected in any State fiscal year over the prior fiscal year gross income tax collections. Under this bill the amount of any annual growth in gross income tax revenues, as measured by the Governor's certification of the revenues to be collected upon enactment of the annual appropriations act, over the prior fiscal year actual gross income tax collections, up to $41,000,000, will be appropriated for municipal property tax relief and distributed in the State fiscal year on a per capita basis pursuant to the Legislative Initiative Municipal Block Grant Program.

Dedicates for the Legislative Initiative Municipal Block Grant Program certain increased gross income tax revenues certified to be collected that are in excess of the amount collected in the prior fiscal year.