Bill Text: NJ A3328 | 2014-2015 | Regular Session | Introduced
Bill Title: Adds to property tax levy cap exclusions increases in flood insurance premiums.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2014-06-23 - Substituted by S762 (1R) [A3328 Detail]
Download: New_Jersey-2014-A3328-Introduced.html
Sponsored by:
Assemblyman GARY S. SCHAER
District 36 (Bergen and Passaic)
Assemblywoman MARLENE CARIDE
District 36 (Bergen and Passaic)
Assemblyman JOSEPH A. LAGANA
District 38 (Bergen and Passaic)
Assemblyman TIMOTHY J. EUSTACE
District 38 (Bergen and Passaic)
SYNOPSIS
Adds to property tax levy cap exclusions increases in flood insurance premiums.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the calculation of the local property tax levy cap and amending P.L.2007, c.62.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 10 of P.L.2007, c.62 (C.40A:4-45.45) is amended to read as follows:
10. a. (1) In the preparation of its budget the amount to be raised by taxation by a local unit shall not exceed, except as provided in paragraph (2) of this subsection, the sum of new ratables, the adjusted tax levy, and the total of waivers approved pursuant to section 11 of P.L.2007, c.62 (C.40A:4-45.46); provided, however, that in the case of a county, the amount to be raised by taxation shall not exceed the amount permitted by section 4 of P.L.1976, c.68 (C.40A:4-45.4).
(2) A local unit that has not been granted approval for a waiver pursuant to section 11 of P.L.2007, c.62 (C.40A:4-45.46), may add to its adjusted tax levy in any one of the next three succeeding years, the amount of the difference between the maximum allowable amount to be raised by taxation or county purposes tax, as applicable, for the current local budget year pursuant to paragraph (1) of this subsection and the actual amount to be raised by taxation or county purposes tax, as applicable, for the current local budget year.
b. The following exclusions shall be added to the calculation of the adjusted tax levy:
increases in amounts required
to be raised by taxation for capital expenditures, including debt service as
defined by law; increases in pension contributions and accrued liability for
pension contributions in excess of 2.0%; increases in health care costs equal
to that portion of the actual increase in total health care costs for the
budget year that is in excess of 2.0% of the total health care costs in the
prior year, but is not in excess of the product of the total health care costs
in the prior year and the average percentage increase of the State Health
Benefits Program, P.L.1961, c.49 (C.52:14-17.25 et seq.), as annually
determined by the Division of Pensions and Benefits in the Department of the
Treasury; increases in flood insurance premiums in excess of 2.0% over the
amount of the prior year's flood insurance premiums, except that for the
initial year of a flood insurance expense resulting from changes to federal
flood insurance rate maps, the entire cost shall be excluded; and
extraordinary costs incurred by a local unit directly related to a declared
emergency, as defined by regulation promulgated by the Commissioner of the
Department of Community Affairs, in
consultation with the Commissioner of Education, as appropriate.
If there are no exclusions, then the amount of the difference shall reduce the adjusted tax levy by that amount. Any cancelled or unexpended appropriation for any exclusion pursuant to this subsection or waiver pursuant to section 11 of P.L.2007, c.62 (C.40A:4-45.46), also shall be deducted from the sum of the exclusions listed in this subsection or directly reduce the adjusted tax levy if there are no exclusions.
(cf: P.L.2010, c.44, s.9)
2. This act shall take effect immediately.
STATEMENT
This bill would add to the current list of exclusions from the calculation of a local unit of government's property tax levy cap, increases in flood insurance premiums in excess of 2.0% from year to year. In the case of a first-year flood insurance resulting from changes to federal flood insurance rate maps, the entire cost would be an exclusion from the property tax levy cap.
It is anticipated that given the recent Federal Emergency Management Agency (FEMA) revisions to flood maps, certain municipalities, counties and other units of local government will face significant increases in the cost of flood insurance coverage.
