This bill amends the "Long Term Tax Exemption Law" to improve the management of payments in lieu of taxes by municipalities, particularly concerning the annual service charge from urban renewal entities. It requires municipal tax collectors to directly transmit five percent of this annual service charge to the county's chief financial officer and mandates that municipalities notify both the county's chief financial officer and the county clerk upon receipt of the charge. These measures aim to enhance transparency and ensure timely communication regarding financial transactions.

Additionally, the bill introduces penalties for late remittance of the five percent charge, allowing counties to recover unpaid amounts through legal action and potentially revoking or suspending the certification of municipal tax collectors or finance officers for non-compliance. It also specifies that municipalities must enter into financial agreements with urban renewal entities for redevelopment projects, which require municipal ordinance approval and notification of public hearings to county officials. Overall, these changes are designed to streamline municipal financial obligations while ensuring counties receive their appropriate share of the annual service charge.

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