New Jersey Assembly Bill A2163

New Jersey 2022-2023 Regular Session

• Introduced: 2/7/22
• Refer: 2/7/22

Caption

Prohibits exemption of school purposes property taxes under "Long Term Tax Exemption Law."

Impact

If enacted, A2163 would directly influence municipal financial agreements associated with urban renewal projects. The bill is expected to create a more equitable financial landscape for local taxpayers, particularly ensuring that funding for public schools is not compromised due to exemptions granted under long-term tax agreements. This legislative change would apply to any financial agreements entered into after the effective date of the bill, enforcing stricter regulations on how property taxes are handled in urban renewal scenarios and potentially altering financial planning for upcoming development projects.

Summary

Assembly Bill A2163 seeks to amend the Long Term Tax Exemption Law in New Jersey by prohibiting the exemption of school purposes property taxes for projects receiving long-term tax exemptions from urban renewal entities. The primary objective of this bill is to alleviate the financial burden on property taxpayers whose properties are not subject to these exemptions. Currently, when property taxes for school purposes are exempted under the existing law, the levies must be collected from other property taxpayers, effectively increasing their individual tax burden. A2163 aims to prevent such scenarios by blocking new property tax exemptions from impacting school funding.

Contention

There may be points of contention regarding how this bill will affect urban renewal initiatives, which often rely heavily on financial incentives like tax exemptions to stimulate development. Proponents argue that it is necessary to secure adequate school funding and protect existing taxpayers. Critics might contend that restricting tax exemptions could deter potential urban renewal projects, negatively affecting economic growth and revitalization efforts in targeted areas. The balancing act for lawmakers will be finding a solution that protects public education funding while still encouraging urban development.