The bill introduces significant amendments to existing laws concerning property tax exemptions and the distribution of payments in lieu of taxes (PILOTs) to enhance transparency and ensure equitable funding for school districts. It mandates that municipalities share specific portions of PILOTs with the school districts they serve, including regional school districts. For residential properties, municipalities are required to provide school districts with an amount based on the number of school-age children residing in the project or an alternative amount equal to five percent of the PILOT for nonresidential or mixed-use properties. Additionally, urban renewal entities must submit copies of long-term property tax exemption applications to the county, school districts, and the Director of the Division of Local Government Services (DLGS), which will post these applications online.

Furthermore, the bill outlines new requirements for municipalities to notify school districts and counties when considering property tax exemptions and to provide copies of related ordinances and financial agreements. It also mandates that annual audits submitted by urban renewal entities certify the number of school-age children residing in the approved projects and that these audits be shared with the DLGS for publication. The bill aims to improve the financial relationship between municipalities and school districts, ensuring that local governments are accountable in their tax exemption practices while enhancing collaboration and transparency in urban development projects.

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