This bill aims to increase the distribution of State aid to municipalities through the Energy Tax Receipts Property Tax Relief Fund over a two-year period, restoring approximately $331 million in reductions to Consolidated Municipal Property Tax Relief Aid (CMPTRA) and Energy Tax Receipts (ETR) Aid that occurred during Fiscal Years 2009 to 2011. Specifically, in Fiscal Year 2023, municipalities will receive an aid increase equal to 50 percent of the difference between the CMPTRA and ETR Aid they received in Fiscal Years 2008 and 2012, with the full restoration of aid commencing in Fiscal Year 2024. The bill also ensures that municipalities receive at least the combined amount of CMPTRA and ETR Aid distributed in Fiscal Year 2012, along with the additional aid provided by this legislation.

To implement these changes, the bill amends current law by requiring municipalities to subtract any additional ETR aid received from their adjusted tax levy for the next fiscal year, allowing them to raise a lower amount of taxes for municipal purposes. Furthermore, it prohibits municipalities from anticipating the receipt of this State aid when preparing their annual budgets and mandates that they amend their local budgets to accurately reflect the total amount of ETR aid received. The bill includes specific legal language changes, such as the deletion of previous requirements regarding waivers and the insertion of new calculations for adjusted tax levies and aid distributions.

Statutes affected:
Introduced: 40A:4-45.44, 52:27D-439, 52:27D-441