On February 5, the Senate Community and Urban Affairs Committee held a discussion-only hearing on S-1833, sponsored by Committee Chair Senator Singleton. This legislation would eliminate Energy Tax Receipts Property Tax Relief Aid (ETR) and the Consolidated Municipal Property Tax Relief aid (CMPTRA) and establish in its place the “Municipal Property Tax Relief Fund.”
Specifically, if enacted, this proposal would:
- hold every municipality harmless, meaning they will get in Municipal Property Tax Relief Fund aid what they received from Energy Tax Property Tax Relief Aid in State Fiscal Year 2025;
- like the current law, includes a poison pill if the state budget does not include at least$1,455,000,000, multiplied by the greater of the sum of 1.0 or the index rate or zero;
- require funding received in excess ofState Fiscal Year 2002 Energy Tax Receipt funds must be used solely and exclusively by each municipality for the purpose of reducing the amount the municipalityis required to raise by local property tax levy for municipal purposed;
- that if in any fiscal year the State receives more than$1,425,000,000from taxes dedicated for the Municipal Property Tax Relief Fund Act, then 75% of the amount must be credited to the Municipal Property Tax Relief Aid Fund for distribution to municipalities as additional aid;
- requiresthe Division of Local Government Services (DLGS)to notify towns within 2 days of budget transmission amount they will be receiving from Municipal Property Tax Relief Fund;
- maintain the same distribution scheduleas under current law.
The League offered preliminary comments and anticipates meeting with DLGS staff as well as the sponsors in the upcoming weeks.
The Assembly companion, A-1209, is sponsored by Assemblyman Avi Schnall and is referred to the Assembly State and Local Government Committee.
Contacts: Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481, x120, and Lori Buckelew, Deputy Executive Director, lbuckelew@njlm.org, 609-695-3481, x112.