The bill establishes a framework for municipalities to share payments in lieu of property taxes (PILOTs) with local school districts, ensuring that counties, school districts, and the Department of Community Affairs (DCA) are informed about property tax exemptions and abatements. It amends existing legislation to clarify the roles and responsibilities of urban renewal entities, requiring them to submit project approval applications to municipalities and provide copies to relevant county and school district officials. Key amendments include the introduction of new definitions, such as "chief executive officer of the county," and the stipulation that urban renewal entities must present detailed financial information, including a fiscal plan and a proposed financial agreement that outlines PILOTs, which must be approved by municipal ordinance.

Furthermore, the bill mandates that municipalities share a portion of the annual service charge from urban renewal projects with school districts, calculated based on the number of school-age children residing in the project or as five percent of the PILOT. It requires urban renewal entities to submit annual auditor's reports certifying the number of school-age children and mandates municipalities to notify the DCA and other entities when considering property tax exemptions. The legislation aims to enhance collaboration between municipalities and educational institutions while ensuring financial accountability and transparency in urban renewal projects, ultimately benefiting the community and its schools.

Statutes affected:
Introduced: 40A:20-3, 40A:20-8, 40A:20-9, 40A:20-12, 18A:7F-38, 40A:21-4