This bill mandates that municipalities within regional school districts share certain payments received in lieu of taxes from urban renewal entities with both the county and the regional school district. Specifically, municipalities must remit a percentage of the annual service charge collected from urban renewal entities to these entities immediately upon receipt. The distribution will be based on the proportion of the amount raised by taxation in the previous year, as indicated on the prior year's tax bill.

Additionally, the bill introduces new legal language that specifies the remittance process for municipalities not within a regional school district, which is set at five percent of the annual service charge. It also outlines the consequences for municipalities that fail to comply with these remittance requirements, including potential legal action by the county and the revocation of municipal finance officer certificates for willful noncompliance. The bill is designed to ensure that both counties and regional school districts receive their fair share of revenue generated from urban renewal projects.

Statutes affected:
Introduced: 40A:20-12