The bill establishes new requirements for municipalities regarding payments in lieu of property taxes (PILOTs) to ensure that a portion of these payments is shared with local school districts, including regional ones. It mandates that municipalities calculate the share based on the number of school-age children residing in residential projects or as a fixed percentage for nonresidential properties. Additionally, municipalities are required to notify the county, school districts, and the Department of Community Affairs (DCA) when considering property tax exemptions and to provide copies of relevant ordinances and financial agreements.

Furthermore, the bill introduces specific obligations for urban renewal entities seeking long-term property tax exemptions. These entities must submit their applications to the county, school districts, and the DCA, which will make the applications publicly accessible online. The bill also requires that annual audits from urban renewal entities certify the number of school-age children in the projects and that these audits be shared with the DCA. Overall, the legislation aims to improve transparency and ensure that school districts receive adequate funding from property tax exemptions while enhancing collaboration between municipalities and educational institutions.

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