This bill, HB 1505-FN, requires municipalities, towns, and cities to submit documentation to the Department of Revenue Administration (DRA) to ensure compliance with local budget and tax caps. It introduces new requirements for political subdivisions that have adopted these caps, mandating the submission of a compliance form that includes detailed computations of the tax cap, proposed appropriations, estimated revenues, and any ballot votes taken to override the caps. The bill also amends existing laws to clarify the handling of appropriations that exceed the tax cap, stipulating that such appropriations must be reduced to comply with the cap. Notably, the bill replaces the term "IFP" with "IF" in the calculation of current per resident expenditures, which will now reflect the current year's annual increase for inflation.

Additionally, the bill empowers the DRA to enforce compliance by adjusting certified budgets that exceed the caps without the necessary supermajority vote. If a budget is found to exceed the cap, the DRA is authorized to reduce it accordingly. The legislation also modifies definitions and calculations related to budget caps for school districts and towns, ensuring that total appropriations do not exceed specified per pupil or per resident expenditure limits, adjusted for inflation. The bill is expected to incur approximately $75,000 in increased expenditures for the DRA to update its systems, while local governments may face additional administrative costs of under $10,000 annually due to new reporting requirements. The act will take effect 60 days after passage.

Statutes affected:
Introduced: 21-J:34, 32:5-b, 32:5-e, 32:5-g
HB1505 text: 21-J:34, 32:5-b, 32:5-e, 32:5-g