SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE
STATEMENT TO
SENATE, No. 330
with committee amendments
STATE OF NEW JERSEY
DATED: JANUARY 27, 2022
The Senate Community and Urban Affairs Committee reports
favorably and with committee amendments Senate Bill No. 330.
As amended, this bill requires the distribution of additional State
aid to municipalities under the “Energy Tax Receipts Property Tax
Relief Act.” Budget constraints required reductions in the amount of
Consolidated Municipal Property Tax Relief Aid (CMPTRA)
distributed to all municipalities in Fiscal Years 2009, 2010, and 2011.
Some municipalities also experienced reductions in their Energy Tax
Receipts Property Tax Relief Aid (ETR Aid) distribution during that
period. This supplemental funding would restore, over a five-year
period, approximately $331 million in reductions to CMPTRA and
ETR Aid.
In Fiscal Year 2023, municipalities would receive an aid increase
equal to 20 percent of the difference between the distribution of
CMPTRA and ETR Aid they received in Fiscal Year 2008 and Fiscal
Year 2012. Municipalities would receive equal increases in each of
the following four fiscal years. The fully restored amount would be
distributed beginning in Fiscal Year 2027 and in each fiscal year
thereafter. The total amount of aid to be restored to each municipality
would be in addition to the total amount of CMPTRA and ETR Aid
distributed to each municipality in Fiscal Year 2012. This legislation
also extends the existing ETR Aid “poison pill” protection to ensure
that each municipality received an aid amount not less than the
combined payment of CMPTRA and ETR Aid to municipalities in
Fiscal Year 2012 and the additional aid distributed under the bill.
This bill also amends current law to require a municipality to
subtract any additional amount of ETR aid it receives, pursuant to the
bill, from its adjusted tax levy when computing that amount for its
next fiscal year. By deducting the additional amount of ETR Aid from
the previous year’s levy, municipalities would be permitted to raise a
lower amount of taxes through the levy for municipal purposes.
This bill was pre-filed for introduction in the 2022-2023 session
pending technical review. As reported, the bill includes the changes
required by technical review, which has been performed. 2
COMMITTEE AMENDMENTS:
The committee amendments to the bill update the schedule for aid
increases to municipalities to provide that the aid increases begin in
fiscal year 2023 and continue to increase until the fully restored
amount is distributed beginning in fiscal year 2027.