This bill amends the "Long Term Tax Exemption Law" to enhance the collaboration between municipalities, school districts, and urban renewal entities regarding financial agreements and property tax exemptions. It requires municipal tax collectors to share a portion of payments received in lieu of taxes (PILOTs) with the relevant school districts. Additionally, urban renewal entities must submit written applications for project approvals to municipalities, which must include notifications to local school districts and county officials. The bill also clarifies definitions related to gross revenue and allowable profit rates, and it establishes a timeline for municipalities to notify school districts and county executives about project applications.

Moreover, the bill introduces new requirements for financial agreements, mandating that they include provisions for limiting profits, tax exemptions, and annual payments for municipal services. It specifies that municipalities must remit a percentage of the annual service charge to school districts immediately upon receipt, with penalties for non-compliance. The bill ensures that revenues from annual service charges are used exclusively to reduce local property tax levies and outlines the distribution of remittances to regional school districts based on the equalized valuation of exempted properties. Overall, the legislation aims to improve transparency and accountability in urban renewal projects while ensuring that local governments and school districts receive their fair share of revenue.

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