Revises Energy Tax Receipts Property Tax Relief Aid program; requires all energy taxes to be paid directly to municipalities.
Starting in Fiscal Year 2022, the bill requires that the total amount of ETR Aid distributed to municipalities will equal the greater of either the amount previously provided or the total energy taxes that are due for that fiscal year. This stipulation prevents the state from retaining any portion of these funds for other uses, ensuring that municipalities receive direct financial support from energy taxpayers.
Assembly Bill A766 aims to revise the Energy Tax Receipts Property Tax Relief (ETR) Aid program in New Jersey by mandating that all energy taxes are paid directly to municipalities rather than through the state. This restructuring seeks to restore the original intent of energy taxes, which were historically collected as compensation for the use of public lands. The bill enforces that the State Treasurer assess the total energy taxes paid and ensure that municipalities directly receive these payments.
Concerns surrounding the bill involve its implications for local government funding and control over municipal budgets. Critics may argue that the change could impact how municipalities manage their financial resources, especially if the total energy taxes fluctuate significantly from year to year. Supporters, conversely, may posit that the bill restores equity and ensures that municipalities have a reliable revenue stream tied directly to local energy enterprises, reinforcing their ability to manage local services effectively.