This bill amends existing legislation to enhance the financial relationship between municipalities and school districts regarding payments in lieu of property taxes (PILOTs). It requires municipalities to share a portion of these payments with the school districts unless a special agreement is made with an urban renewal entity. The bill outlines the calculation of annual service charges for both residential and non-residential projects, ensuring that the amounts remitted to school districts reflect the number of school-age children residing in the projects. Additionally, it mandates that municipalities notify relevant parties about tax exemption applications and submit related ordinances and financial agreements to the Division of Local Government Services (DLGS) for public posting.

The bill also introduces new requirements for urban renewal entities, including the submission of annual audits certifying the number of school-age children in approved projects. It establishes a process for county and school district representatives to provide recommendations on tax exemption applications, which the municipal governing body must consider. Furthermore, it allows school districts to recover unpaid PILOTs through legal action and introduces penalties for municipalities that fail to comply with remittance requirements. Overall, the amendments aim to improve transparency, accountability, and funding for school districts while allowing municipalities to negotiate special projects that benefit local education.

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