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 commissioners' clerk upon receipt of the charge. The bill also introduces penalties for late remittance, allowing counties to recover unpaid amounts, including interest and legal fees, through court action. Additionally, municipal tax collectors or finance officers may face revocation or suspension of their certification for non-compliance.

Moreover, the bill establishes new requirements for municipal tax collectors or finance officers regarding the notification of the annual service charge on specific dates and the timely remittance of the five percent share. It stipulates that every redevelopment project must be backed by a financial agreement with the urban renewal entity, which requires municipal ordinance approval before taking effect. Notice of the public hearing for this ordinance must also be provided to the county's chief financial officer and the clerk of the board of county commissioners. The bill includes technical changes aimed at enhancing clarity and compliance with these new provisions.

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