New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A5217

Introduced
2/23/23  

Caption

Requires cost-benefit analyses and local government financial impact findings for approval of long term property tax exemption; requires DCA to post Statewide database of these exemptions on its Internet website.

Impact

If enacted, A5217 will significantly affect the procedures through which municipalities handle applications for long-term property tax exemptions. Each application will require an independent cost-benefit analysis to be submitted alongside the proposal. The findings of this analysis will be critical for municipal governing bodies to assess the net impact of the proposed projects on local finances, including potential revenues lost due to tax exemptions. This change aims to bring greater accountability and transparency to the approval process, allowing for a more comprehensive understanding of the fiscal implications of such developments.

Summary

Assembly Bill A5217, introduced in New Jersey, mandates that municipalities conduct thorough cost-benefit analyses before granting long-term property tax exemptions. This requirement is designed to ensure that municipalities evaluate the financial impacts of potential tax exemptions on various local governments, including counties and school districts. The bill seeks to foster a more responsible and informed decision-making process regarding financial agreements related to urban development projects, ensuring that local governments assess whether these projects will generate satisfactory revenue returns.

Contention

The discussions surrounding A5217 have involved various stakeholders who express differing views on the implications of the bill. Supporters argue that the requirement for thorough financial scrutiny will lead to more prudent fiscal management and prevent municipalities from approving projects that could potentially burden local finances. Conversely, some critics may view this as an additional layer of bureaucracy that could slow down project approvals, potentially hindering economic development initiatives. Thus, the debate highlights a fundamental tension between ensuring fiscal responsibility and promoting timely local investment growth.

Companion Bills

NJ S674

Same As Requires cost-benefit analyses and local government financial impact findings for approval of long term property tax exemption; requires DCA to post Statewide database of these exemptions on its Internet website.

Previously Filed As

NJ A250

Requires cost-benefit analyses and local government financial impact findings for approval of long term property tax exemption; requires DCA to post Statewide database of these exemptions on its Internet website.

NJ S674

Requires cost-benefit analyses and local government financial impact findings for approval of long term property tax exemption; requires DCA to post Statewide database of these exemptions on its Internet website.

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 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 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 A438

Requires DCA to provide certain long term tax exemption information on website.

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 A2163

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

NJ A157

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

Similar Bills

NJ A250

Requires cost-benefit analyses and local government financial impact findings for approval of long term property tax exemption; requires DCA to post Statewide database of these exemptions on its Internet website.

NJ S674

Requires cost-benefit analyses and local government financial impact findings for approval of long term property tax exemption; requires DCA to post Statewide database of these exemptions on its Internet website.

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.

AZ SB1116

Municipal tax exemption; residential lease

CA SB1163

Enhanced Infrastructure Financing Districts.

CA AB464

Enhanced Infrastructure Financing Districts: allowable facilities and projects.

CA AB1819

Enhanced infrastructure financing districts: public capital facilities: wildfires.

CA AB2403

Community colleges: student equity plan.