This bill establishes a new framework for distributing State aid to municipalities located in whole or in part within the Highlands preservation area of New Jersey. It creates the "Highlands Preservation Area Municipal Property Tax Relief Fund" as a special non-lapsing fund within the General Fund, which will provide financial assistance to qualified municipalities that have a significant portion of their land in the Highlands preservation area and have conformed their municipal plans to the Highlands regional master plan. The bill defines a "qualified municipality" and sets the 2023 tax year as the base year for calculating the aid. It mandates that assessors in these municipalities report on the assessed values of vacant land, which will be used to determine the valuation base and the amount of aid each municipality is entitled to receive.

The bill also outlines the procedures for calculating and distributing the aid, including timelines for reporting and certification by the county tax administrator and the State Treasurer. It ensures that municipalities receiving aid must anticipate these funds in their annual budgets as a direct offset to the amount raised by taxation. Additionally, it amends existing law to redirect funds from the "Highlands Protection Fund" to support this new aid program, while repealing a previous section related to property tax stabilization payments. Overall, the bill aims to provide ongoing property tax relief to municipalities affected by development restrictions in the Highlands preservation area.

Statutes affected:
Introduced: 13:20-19, 54:1-85