This bill amends the "Long Term Tax Exemption Law" to impose new responsibilities on municipal tax collectors or finance officers regarding the handling of payments in lieu of taxes, specifically the annual service charge. Municipalities are now required to remit five percent of the annual service charge directly to the county's chief financial officer and notify them upon receipt of the charge on specified dates (February 1, May 1, August 1, and November 1). The remittance must be completed by the fifteenth day of the month in which each tax installment is due. Failure to comply with these requirements may result in penalties, including the county's ability to recover unpaid balances, interest, and legal costs from the municipality, as well as potential revocation or suspension of the municipal tax collector or finance officer's certification.

Additionally, the bill mandates that every redevelopment project approved by the municipality must be accompanied by a financial agreement with the urban renewal entity, which will only take effect upon approval by an ordinance of the municipality. Notice of the public hearing regarding this ordinance must be provided to both the county's chief financial officer and the clerk of the board of county commissioners. The bill also includes technical changes aimed at enhancing clarity and ensuring compliance with the new requirements.

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