This bill mandates that nonpublic secondary schools, independent institutions of higher education, and the Department of the Treasury in New Jersey must make annual payments to school districts for students residing in tax-exempt facilities owned by these entities. The payment amount is determined by the district's per pupil general fund tax levy for the budget year, calculated by dividing the general fund tax levy by the resident enrollment. The governing body of the municipality must adopt a resolution for this requirement to take effect. Additionally, by November 1 of each budget year, the board of education is responsible for notifying the respective institution or department of the number of resident students and the total payment owed, which must be forwarded within 60 days of receipt.

Furthermore, the bill includes a provision that adjusts the tax levy growth cap for the recipient district in the following school year by subtracting the total payment received under this bill. This adjustment aims to ensure that the additional revenue generated from these payments is utilized to lower property taxes for residents. The bill is set to take effect immediately and will apply to the first full school year following its enactment.

Statutes affected:
Introduced: 18A:7F-38