Bill Text: NJ A250 | 2024-2025 | Regular Session | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly State and Local Government Committee [A250 Detail]
Download: New_Jersey-2024-A250-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman MICHAEL INGANAMORT
District 24 (Morris, Sussex and Warren)
Assemblywoman DAWN FANTASIA
District 24 (Morris, Sussex and Warren)
SYNOPSIS
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.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning long term property tax exemptions and amending and supplementing P.L.1991, c.431.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 8 of P.L.1991, c.431 (C.40A:20-8) is amended to read as follows:
8. Every urban renewal entity qualifying under [this act] P.L.1991, c.431 (C.40A:20-1 et seq.), before proceeding with any projects, shall make written application to the municipality for approval thereof. The application shall be in a form, and shall certify to those facts and data, as shall be required by the municipality, and shall include but not be limited to:
a. A general statement of the nature of the proposed project, that the undertaking conforms to all applicable municipal ordinances, and that the project accords with the redevelopment plan and master plan of the municipality, or, in the case of a redevelopment relocation housing project, provides for the relocation of residents displaced or to be displaced from a redevelopment area, or, in the case of a low and moderate income housing project, the housing units are restricted to occupation by low and moderate income households.
b. A description of the proposed project outlining the area included and a description of each unit thereof if the project is to be undertaken in units and setting forth architectural and site plans as required.
c. A statement prepared by a qualified architect or engineer of the estimated cost of the proposed project in the detail required, including the estimated cost of each unit to be undertaken.
d. The source, method, and amount of money to be subscribed through the investment of private capital, setting forth the amount of stock or other securities to be issued therefor or the extent of capital invested and the proprietary or ownership interest obtained in consideration therefor.
e. A fiscal plan for the project outlining a schedule of annual gross revenue, the estimated expenditures for operation and maintenance, payments for interest, amortization of debt and reserves, and payments to the municipality to be made pursuant to a financial agreement to be entered into with the municipality.
f. A proposed financial agreement conforming to the provisions of section 9 of [this act] P.L.1991, c.431 (C.40A:20-9).
g. A cost-benefit analysis of the project's impact on the finances of the municipality, county, and other taxing districts, within which the project is located, outlining, at a minimum: (1) the net financial impact on the municipality based on the estimated payments to the municipality to be made pursuant to a financial agreement to be entered into with the municipality and the estimated additional one-time and periodic expenditures to be incurred by the municipality as a result of the project; (2) the municipal revenues to be gained or lost based on this estimated net financial impact and the estimated net financial impact of the property on the municipality if the project is not approved and the current use and condition of the property is continued; (3) the property tax revenues to be foregone by the county and taxing districts in which the project is located if a tax exemption is approved pursuant to P.L.1991, c.431 (C.40A:20-1 et seq.); and (4) any other information relevant to determining the impact of the project on the finances of the municipality, county, and other taxing districts, within which the project is located, as shall be required by the municipality or as may be required by administrative rules adopted by the Commissioner of Community Affairs or the Local Finance Board. Within 30 days of receipt of the application, the municipality shall post the cost-benefit analysis required by this subsection on its Internet website, or, if one does not exist, the cost-benefit analysis shall be provided for public inspection on the Internet website of the Department of Community Affairs.
The application shall be addressed and submitted to the mayor or other chief executive officer of the municipality. The mayor or other chief executive officer shall, within 60 days of his receipt of the application thereafter, submit the application with his recommendations, and an independent cost-benefit analysis of the project's impact on the finances of the municipality, county, and other taxing districts, within which the project is located, conducted by the office, or other designee, of the mayor or other chief executive officer, to the municipal governing body. The independent cost-benefit analysis shall include, at a minimum, the information required in subsection g. of this section. Within 30 days of submission to the municipal governing body, the municipality shall post the independent cost-benefit analysis on its Internet website, or, if one does not exist, the independent cost-benefit analysis shall be provided for public inspection on the Internet website of the Department of Community Affairs.
The governing body shall by
resolution approve or disapprove the application, but in the event of
disapproval, changes may be suggested to secure approval. The resolution
shall include specific findings about the project's estimated net impact on the
finances of the municipality, county, and other taxing districts, within which
the project is located. Within 30 days of adoption of the resolution, the
municipality shall post the resolution on its Internet website, or, if one does
not exist, the resolution shall be provided for public inspection on the
Internet website of the Department of Community
Affairs. An application may be revised and resubmitted.
(cf: P.L.1991, c.431, s.8)
2. (New section) a. A municipality shall notify the Department of Community Affairs within 30 days after approving a financial agreement pursuant to section 9 of P.L.1991, c.431 (C.40A:20-9). The notice shall include the same information required to be included in a plain language budget summary for long term tax exemptions pursuant to subsection b. of section 39 of P.L.2007, c.63 (C.40A:5-48).
b. The Department of Community Affairs, in consultation with the Office of Information Technology, shall design, develop, and maintain a database on its Internet website that contains and displays: (1) the information provided to the department pursuant to subsection a. of this section, and (2) the information included in plain language budget summaries for long term tax exemptions pursuant to subsection b. of section 39 of P.L.2007, c.63 (C.40A:5-48), which were approved prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), sorted by municipality.
3. This act shall take effect immediately.
STATEMENT
This bill would require an application for a long term property tax exemption to include a cost-benefit analysis and for the mayor or other chief executive officer of the municipality to produce an independent cost-benefit analysis to be submitted along with the application to the municipal governing body before it can decide on the exemption. The bill would also require a municipal governing body to include in its resolution approving or disapproving of a project for which a long term tax exemption is sought specific findings about the net impact of the project on the finances of the directly affected local governments, namely the municipality, county, school district, and other taxing districts within which the project is located.
The cost-benefit analyses and financial impact findings required for grants of long term property tax exemptions would have to be posted on the Internet website of the granting municipality. If the municipality does not have a website, this information would have to be provided for public inspection on the Internet website of the Department of Community Affairs (DCA). Municipalities that grant new long term property tax exemptions would have to provide pertinent information about each approved project to DCA, which would post that information, along with existing long term property tax exemption information retrieved from plain language budget summaries submitted to DCA, in a database, sorted by municipality, on its Internet website.
This bill would ensure that municipalities consider and evaluate whether an investment in a redevelopment project through the grant of a long term property tax exemption will generate satisfactory revenue returns to the municipality, as well as the financial impacts on counties, school districts, and other local governments. The bill would also allow the public to do the same by making the required cost-benefit analyses and financial impact findings, as well as complete long term property tax exemption information for each municipality, easily accessible on the Internet.
