The bill aims to enhance transparency and communication between municipalities and school districts regarding property tax exemptions and payments in lieu of taxes (PILOTs). It mandates that municipalities share a portion of certain PILOTs with local school districts, including regional ones, based on the number of school-age children residing in the project or as a fixed percentage for nonresidential properties. Additionally, municipalities are required to provide copies of applications for long-term property tax exemptions to relevant county and school district officials, as well as the Director of the Division of Local Government Services (DLGS), who must post these applications online. The bill also emphasizes the need for urban renewal entities to submit detailed financial plans and annual audits certifying the number of school-age children in their projects.

Key amendments include the introduction of new definitions and the requirement for urban renewal entities to submit their financial agreements to municipalities for approval. The bill clarifies that tax exemptions will be granted under specific conditions and that all exemptions will terminate as outlined in the financial agreements, after which properties will be assessed and taxed like other properties. Furthermore, it stipulates that municipalities must remit a percentage of the annual service charge to school districts based on the number of school-age children in the project, thereby ensuring that local governments and educational institutions are adequately informed and involved in the financial aspects of urban renewal projects.

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