SENATE, No. 808

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 22, 1996

By Senator RICE

An Act concerning State financial assistance to municipalities for State property and supplementing Title 54 of the Revised Statutes.

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

    1. As used in this act:

    "Municipal public safety ratio" means the proportion of the total budget approved and adopted by a municipality which is necessary to defray the costs of police and fire protection within that municipality based on the latest available municipal government expenditure data published by the Department of Community Affairs;

    "Municipal public safety tax rate" means the rate, per $100 of net valuation taxable of property, as shown in Column 6 of the Abstract of Ratables and Exemptions propared pursuant to R.S.54:4-52, within a municipality, derived by multiplying the municipal purposes tax rate times the municipal public safety ratio;

    "Municipal purposes tax rate" means the rate derived by dividing the amount to be raised by taxation within a municipality for local municipal purposes, by the net valuation taxable of property within that municipality, as both the amount and valuation are shown in the Abstract of Ratables and Exemptions prepared pursuant to R.S.54:4-52;

    "Public safety tax requirements" for State property situated in a qualified municipality means the amount determined by multiplying the municipal public safety tax rate of that municipality times the aggregate valuation of State property within that municipality;

    "Qualified municipality" means a municipality within which State property is situated;

    "State property" means land and improvements owned by the State, and includes but shall not be limited to State offices, hospitals, institutions, schools, colleges, universities, garages, inspection stations, warehouses, barracks and armories together with abutting vacant land held for future development for the same purposes, but shall not include land or improvements used or held for future use for highway, bridge or tunnel purposes, or property which is qualified under State law for any State payment in lieu of taxes other than the payment required pursuant to P.L.1977, c.272 (C.54:4-2.2a et seq.);

    "Tax year" means the calendar year during which local property taxes are assessed and levied; and

    "Valuation of State property" means the taxable valuation assessment of that property, as determined for the purposes of P.L.1977, c.272 (C.54:4-2.2a et seq.).

    2. There shall annually be appropriated a sum to be apportioned among qualified municipalities as reimbursement for the public safety tax requirements of those municipalities. Each qualified municipality shall receive an amount equal to its public safety tax requirements for the immediately preceeding tax year.

    3. On or before November 1 of each year, the Director of the Division of Local Government Services, in the Department of Community Affairs, shall certify the municipal public safety ratio of each qualified municipality to the Director of the Division of Taxation, in the Department of the Treasury. Upon receipt of the ratio so certified, the Director of the Division of Taxation shall determine the municipal public safety requirements for each qualified municipality, and shall certify the results of this determination to the State Treasurer and to the chief financial officer of each qualified municipality, on or before December 1 of that year. The State Treasurer shall include in his budget request for State aid to municipalities during the succeeding State fiscal year the funds necessary to reimburse all qualified municipalities for their public safety tax requirements.

    4. The State Treasurer shall, upon the warrant of the Director of the Division of Budget and Accounting, in the Department of the Treasury, pay to the chief financial officer of each qualified municipality, on or before August 1 of each year, the amounts necessary to reimburse the municipality for its public safety tax requirements for the immediately preceeding tax year.

    5. Amounts apportioned pursuant to this act shall be in addition to any amounts for which qualified municipalities are eligible as payments in lieu of taxes on State property pursuant to P.L.1977, c.272 (C.54:4-2.2a et seq.).

    6. The funds a qualified municipality shall acquire pursuant to this act shall be appropriated by the municipality in compliance with the "Local Budget Law," N.J.S.40A:4-1 et seq. Notwithstanding any provisions of the "Local Budget Law," any municipality qualifying for State aid under the provisions of this act may anticipate the receipt of the amount of State aid certified to it by the director and may file such amendments or corrections in its local budget as may be required to properly reflect the amount certified.

    7. Notwithstanding the provision of any law, rule or regulation to the contrary, no municipality eligible for payment in lieu of taxes on State property pursuant to P.L.1977, c.272 (C.54:4-2.2a et seq.) shall, in any local budget year, receive less than the amount which the municipality received during the 1994 local budget year under that law.

    8. This act shall take effect immediately and shall apply to public safety tax requirements for each tax year beginning on or after the effective date of this act.

STATEMENT

    This bill provides for State financial assistance to municipalities for police and fire protection available and provided to State property. The amount of assistance is to be based on the proportion of the municipal purposes tax rate necessary to pay for police and fire services, times the taxable value of State property.