This bill amends the "Long Term Tax Exemption Law" to enhance the process surrounding payments in lieu of taxes (PILOTs) received by municipalities for redevelopment projects. It mandates that municipal tax collectors notify both the municipality and the county's chief financial officer upon receiving the annual service charge. Furthermore, the tax collector is required to directly transmit five percent of this charge to the county within seven days of notification. The bill also stipulates that every approved redevelopment project must be supported by a financial agreement between the municipality and the urban renewal entity, which cannot take effect without municipal ordinance approval. Additionally, the municipality must inform the county's chief financial officer and the county commissioners' clerk about the public hearing related to the ordinance.

The bill introduces new requirements for transparency and accountability in the financial agreements related to urban renewal projects. It ensures that the county is promptly informed of any financial agreements and their associated public hearings, thereby fostering better communication between municipalities and county officials. The legislation also includes technical changes to clarify existing provisions, ensuring that the process for managing PILOTs is more efficient and structured. Overall, the bill aims to streamline the financial management of redevelopment projects while ensuring that counties receive their due share of the annual service charges.

Statutes affected:
Introduced: 40A:20-9, 40A:20-12