New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A2656

Introduced
1/9/24  

Caption

Requires municipalities to file copies of tax abatement and exemption agreements with county chief financial officer and county counsel within 10 days of execution.

Impact

If enacted, A2656 would significantly adjust the administrative processes for municipalities regarding tax agreements. By requiring immediate reporting to county officials, the bill seeks to minimize potential abuses of the tax abatement system and enhance fiscal accountability. The annual reporting requirements for municipalities concerning the total amount of taxes abated and exempted will provide clearer insights into local government finances and their implications on county tax apportionment and school aid. The new structure aims to better align municipal practices with the overall fiscal health of the county and state.

Summary

Assembly Bill A2656 mandates the prompt filing of tax abatement and exemption agreements by municipalities with the county chief financial officer and county counsel within ten days of execution. This requirement aims to enhance transparency and oversight regarding municipal financial agreements. It amends existing legislation (P.L.1991, c.441) to ensure that municipalities stay accountable in their dealings with tax agreements, allowing for better compliance with local, state, and federal regulations. The bill specifies that tax agreements can only be in effect for five years following project completion, thereby ensuring that municipalities regularly assess the necessity and impact of such agreements.

Contention

The bill is likely to face scrutiny from local municipalities concerned about increased administrative responsibilities and oversight obligations. Some local government officials may argue that the added requirements could impose an unnecessary burden on their resources. Additionally, there may be concerns regarding the short duration of tax agreements, as some municipalities might seek longer-term agreements for substantial development projects to attract businesses and stimulate economic growth. Advocacy groups and stakeholders will be observing the repercussions of this bill to gauge its effectiveness in enhancing transparency versus its burden on local governance.

Companion Bills

NJ A2079

Carry Over Requires municipalities to file copies of tax abatement and exemption agreements with county chief financial officer and county counsel within 10 days of execution.

NJ S1565

Carry Over Requires municipalities to file copies of tax abatement and exemption agreements with county chief financial officer and county counsel within 10 days of execution.

Previously Filed As

NJ A2079

Requires municipalities to file copies of tax abatement and exemption agreements with county chief financial officer and county counsel within 10 days of execution.

NJ S1565

Requires municipalities to file copies of tax abatement and exemption agreements with county chief financial officer and county counsel within 10 days of execution.

NJ S4069

Requires cost-benefit analyses for long term tax exemption, and requires DCA to create database of exemptions; requires five-year tax exemption and abatement agreements to be filed with certain county officials.

NJ A971

Requires municipalities to share certain payments in lieu of property taxes with school districts; informs counties, school districts, and DCA of certain information related to property tax exemptions and abatements.

NJ A1107

Requires municipalities to share certain payments in lieu of property taxes with school districts; informs counties, school districts, and DCA of certain information related to property tax exemptions and abatements.

NJ S3915

Requires municipalities to share certain payments in lieu of property taxes with school districts; informs counties, school districts, and DCA of certain information related to property tax exemptions and abatements.

NJ S4577

Requires DCA to conduct study on local government use of financial agreements granting tax abatements and exemptions and accepting payments in lieu of taxation for redevelopment and rehabilitation.

NJ A2094

Requires municipalities comprised within regional school districts to share certain payments received in lieu of taxes with counties and regional school districts.

NJ A3400

Requires municipalities comprised within regional school districts to share certain payments received in lieu of taxes with counties and regional school districts.

NJ A2614

Increases maximum allowable five-year property tax exemption and abatement for improvements to certain dwellings located in areas in need of rehabilitation.

Similar Bills

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TX HB4726

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NJ S1565

Requires municipalities to file copies of tax abatement and exemption agreements with county chief financial officer and county counsel within 10 days of execution.

NJ A2079

Requires municipalities to file copies of tax abatement and exemption agreements with county chief financial officer and county counsel within 10 days of execution.

CA AB3090

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CA SB814

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