The bill establishes new requirements for municipalities regarding the sharing of payments in lieu of property taxes (PILOTs) with school districts, ensuring that educational funding is directly linked to urban development projects. It mandates that municipalities inform counties, school districts, and the Department of Community Affairs about specific property tax exemptions and abatements. Additionally, the bill clarifies the roles of urban renewal entities, requiring them to submit detailed project applications, including financial plans and fiscal information, to municipalities, which must then share this information with relevant local officials. This aims to enhance transparency and collaboration among local government entities involved in urban renewal.

Key amendments include the introduction of new definitions, such as "chief executive officer of the county," and the stipulation that municipalities must remit a percentage of the annual service charge to school districts based on the number of school-age children attending public schools. The bill also modifies the structure of annual service charges for urban renewal entities during tax exemption periods, establishing a tiered system based on project type. Furthermore, it requires municipalities to notify school districts and counties when considering property tax exemptions and to provide comprehensive documentation related to these applications. Overall, the bill seeks to improve the financial relationship between municipalities and school districts while ensuring that the implications of property tax exemptions are effectively communicated.

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