A 5228 — Requires municipal tax collectors who obtain payments in lieu of taxes under "Long Term Tax Exemption Law" to share portion of that revenue with school district or districts.

Summary

Long Term Tax Exemp. Law-req mun tax collectors share portion of revenue

Bill Text

• Introduced View text Current html June 09, 2026

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This bill amends 6 section(s) of the New Jersey statutes: N.J.S.A. 40A:20-3; N.J.S.A. 40A:20-8; N.J.S.A. 40A:20-9; N.J.S.A. 40A:20-12; N.J.S.A. 18A:7F-38; N.J.S.A. 40A:21-4.

• N.J.S.A. 40A:20-3

  services municipal % % % % → service public percent percent percent percent p. "Chief executive officer of the county" means the county executive, county manager, county supervisor, or president of the board of county commissioners, as appropriate to the form of government of a county.

  amended

• N.J.S.A. 40A:20-8

  this act to the municipality this act his his The → P.L.1991, c.431 (C.40A:20-1 et seq.) , and shall provide copies of the application, for informational purposes, to the board of county commissioners and the chief executive officer of the county within which the municipality is located, and to the board of education and superintendent of any school district, including a regional school district, that is coextensive with the municipality, or of which the municipality is a constituent. The urban renewal entity, at the time an application is made, shall provide notice of the application submission to the Director of the Division of Local Government Services in the Department of Community Affairs, which shall post the notice on the Internet website of the department in lieu of taxes P.L.1991, c.431 (C.40A:20-9) g. Any other information relevant to determining the financial impact of the project as may be required pursuant to a rule adopted by the Commissioner of Community Affairs or the Local Finance Board. Within five business days of receipt of an application, the mayor or other chief executive officer of the municipality and urban renewal entity shall notify the board of education and superintendent of any school district, including a regional school district, that is coextensive with the municipality, or of which the municipality is a constituent, of the application and the urban renewal entity. The superintendent or chief executive of the board of education of any school district, including a regional school district, that is coextensive with the municipality, or of which the municipality is a constituent, shall lead negotiations on behalf of the board of education concerning the agreement with the municipality and urban renewal entity. of the municipality any Simultaneously, the mayor or other chief executive officer of the municipality shall submit copies of any recommendations to the board of county commissioners and the chief executive officer of the county within which the municipality is located and to the board of education and superintendent of any school district, including a regional school district, that is coextensive with the municipality, or of which the municipality is a constituent. Representatives of the county and school district or districts may submit recommendations to the municipal governing body within 10 days after the date of submittal of the recommendations of the mayor or chief executive officer of the municipality. After affording representatives of the county and school district, or districts, a 10-day period to review the proposed project and the recommendations of the mayor or chief executive officer of the municipality, and after giving due consideration to the recommendations submitted by all interested parties, the municipal

  amended

• N.J.S.A. 40A:20-9

  , in which the urban renewal entity shall certify to the mayor and the governing body of the municipality the number of school-age children residing in the approved project who are attending a public school. The urban renewal entity, at the time the auditor's reports are submitted, shall provide copies of the reports to the Director of the Division of Local Government Services in the Department of Community Affairs, which shall post the reports on the department's Internet website for public services

  amended

• N.J.S.A. 40A:20-12

  Such in a newspaper of general circulation in the municipality and in a newspaper of general circulation in the county if different from the municipal newspaper , which municipal municipal which → Director of the Division of Local Government Services in the Department of Community Affairs, the , of the county within which the municipality is located, and to the board of education and the superintendent of any school district coextensive with the municipality or of which the municipality is a constituent, including a regional school district, Upon receipt of an ordinance and financial agreement, the Department of Community Affairs shall post the ordinance and agreement on the department's Internet website. The online pursuant to the requirements of P.L.2025, c.72 (C.35:3-1 et seq.) for public services. The municipality , and to the school district or districts, public public Revenue derived from an annual service charge pursuant to a financial agreement for municipal purposes, county purposes, or school purposes shall be used solely and exclusively by the municipality, county, or school district for the purpose of reducing the amount that is required to be raised through the local property tax levy by the municipality for municipal purposes, by the county for county purposes, and by the school district for school district purposes, as appropriate. (3) that , and the school district or districts, including regional school districts, pursuant to paragraph (4) of this subsection The remittance requirements pertaining to school districts shall not be applicable to a 100 percent low- and moderate- income housing project dedicated to housing 100 percent senior citizen occupants, who are persons 62 years of age or older and who qualify as low- and moderate-income households . and the remittance due to the school district or districts, including regional school districts, and school district or districts, including regional school districts, (4) (a) Each municipality that enters into a financial agreement on or after the effective date of P.L. , c. (pending before the Legislature as this bill), shall remit a percentage of the annual service charge to the school district or districts, including regional school districts, immediately upon receipt of that service charge, either: (i) within 90 days following the municipality's receipt of an application pursuant to section 8 of P.L.1991, c.431 (C.40A:20-8); or (ii) for a municipality, school district or districts, including regional school districts, and urban renewal entity that seek to modify their agreement pursuant to section 4 of P.L.1991, c.431 (C.40A:20-4), not less than 60 days prior to the date that the next installment payment is due for any county tax due pursuant to the provisions of R.S.54:4-74. (b) The payment received by a school district or districts, including regional school districts, pursuant to this section, shall equal the percentage of the amount of property taxes that are distributed to a given school district or districts, including regional school districts. (c) When a municipality that is a constituent of a regional school district enters into a financial agreement that includes properties within that regional school district's jurisdiction, the remittance to the regional school district shall, notwithstanding subparagraph (b) of this paragraph, be: (i) distributed to reflect the equalized valuation that would have been contributed by the property subject to a tax exemption to the regional school district's cost apportionment formula absent the tax exemption. In the event that the cost apportionment method adopted by the regional school district is based solely on the proportional number of pupils in the constituent municipalities or based on a combination of equalized valuations and pupil enrollment as authorized pursuant to N.J.S.18A:13-23, the remittance shall be distributed to reflect the percentage of the amount of property taxes that the constituent municipality otherwise pays to the regional school district; and (ii) calculated to ensure that constituent municipalities of the regional school district that did not approve the financial agreement do no

  amended

• N.J.S.A. 18A:7F-38

  % % % % % % → less any payment received in the prebudget year pursuant to section 12 of P.L.1991, c.431 (C.40A:20-12), percent percent percent percent percent percent

  amended

• N.J.S.A. 40A:21-4

  The municipality shall provide a copy of an ordinance introduced or adopted pursuant to this section, including one amending or repealing an ordinance, to the Director of the Division of Local Government Services in the Department of Community Affairs, which shall post the ordinance on the Internet website of the department.

  amended

Action History

1. September 10, 2026

   W

2. June 08, 2026

   INT 1RA REF ASL

Sponsors

• Roy Freiman · Primary

Subjects