This bill aims to increase the distribution of State aid to municipalities through the Energy Tax Receipts Property Tax Relief Fund, restoring approximately $331 million in reductions to Consolidated Municipal Property Tax Relief Aid (CMPTRA) and Energy Tax Receipts (ETR) Aid over a two-year period. 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 legislation 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 bill.

Furthermore, the bill introduces new requirements for municipalities regarding the handling of ETR aid. It mandates that any additional ETR aid received must be subtracted from the municipality's adjusted tax levy when calculating the amount for the next fiscal year, allowing for a lower tax raise for municipal purposes. Additionally, municipalities are prohibited from anticipating the receipt of this State aid when preparing their annual budgets and must amend their local budgets to accurately reflect the total ETR aid received. The bill includes specific amendments to existing law, such as the adjustment of the definition of "adjusted tax levy" and the establishment of a dedicated fund for the ETR aid.

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