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 under 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 when calculating the amount for the next fiscal year. This adjustment allows municipalities to raise a lower amount of taxes for municipal purposes. Furthermore, the bill prohibits municipalities from anticipating the receipt of any State aid payment from the ETR aid when preparing their annual budgets and mandates that they amend their local budgets to accurately reflect the total amount of ETR aid distributed.

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