This bill mandates that urban renewal entities seeking long-term tax exemptions must submit a comprehensive application to municipalities, which includes a detailed cost-benefit analysis assessing the financial impact of the project on local governments, including municipalities, counties, and school districts. The mayor or chief executive officer is also required to conduct an independent cost-benefit analysis and submit both analyses to the municipal governing body for review. The governing body must then include specific findings regarding the project's financial implications in their resolution to approve or disapprove the application. Additionally, the bill stipulates that these analyses and findings must be published on the municipality's website or, if unavailable, on the Department of Community Affairs (DCA) website.

Furthermore, the bill establishes a requirement for municipalities to notify the DCA within 30 days of approving a financial agreement related to tax exemptions and mandates the DCA to create a database on its website to display information about these exemptions. It also amends existing laws to ensure that municipalities forward copies of tax agreements to county officials within 10 days of execution and report annually on the total amount of property taxes exempted or abated. This legislation aims to enhance transparency and accountability in the granting of tax exemptions, ensuring that local governments consider the financial ramifications of such agreements.

Statutes affected:
Introduced: 40A:20-8, 40A:21-11, 40A:21-21