S 59: Requires municipalities to share certain payments received in lieu of property taxes with school districts; informs counties and school districts of application for property tax exemption

S 59

Requires municipalities to share certain payments received in lieu of property taxes with school districts; informs counties and school districts of application for property tax exemption

NJEA supports S-59 (Singleton). This bill would provide counties and school districts with notice that a municipality is considering granting long term tax exemptions and require municipalities to share amounts received from urban renewal entities in lieu of property taxes with school districts, including regional school districts.\

Under the bill, urban renewal entities would be required to provide counties and school districts with copies of applications for long term tax exemptions.  The bill would require an urban renewal entity to certify, in its annual audit to the mayor and the governing body of the municipality, the number of school-age children attending public school who are residing in the approved project. Mayors would be required to provide counties and school districts with copies of the recommendations mayors submit to municipal governing bodies with regard to applications from urban renewal entities.  Municipal governing bodies would afford counties and school districts a 10-day period to review mayoral recommendations, within which period counties and school districts could submit their own recommendations.  When determining whether to approve an application, a municipal governing body would give due consideration to the concerns of counties and school districts.

The bill would also require municipalities to provide a portion of the amounts received in lieu of property taxation from urban renewal entities to the school district or districts that serves the municipality, including a regional school district.  A municipality that receives a payment in lieu of taxation from an urban renewal entity would be required to distribute a portion of the amount received, immediately upon receipt, to the school district or districts, including regional school districts, based upon an amount derived by multiplying the number of school-age children who are attending public school in the municipality or at a school in a regional school district serving the municipality and who are residing in the approved project as certified by the urban renewal entity in the annual auditor’s report to the mayor and governing body of the municipality, by the school district’s budgetary cost per pupil.

Under current law, a municipality must provide 5% of the payment in lieu of taxes to the county and are not required to provide any portion to the local school district.

For far too long, local governmental entities have been able to approve development projects without considering how these projects would impact the public-school system.  This bill is a forward step in the right direction toward ensuring that governmental entities whose actions can impact the operation, financing, student enrollment of school districts are communicating with their school district and considering how their actions will impact the children, employees, and finances of the local school district.

NJEA urges your support of this bill.

Text of bill

 

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