SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 3787

with committee amendments

STATE OF NEW JERSEY

DATED:  DECEMBER 5, 2024

      The Senate Community and Urban Affairs Committee reports favorably, and with committee amendments, Senate Bill No. 3787.

As amended, this bill amends certain provisions of the "Long Term Tax Exemption Law," P.L.1991, c.431 (C.40A:20-1 et seq.) concerning payments in lieu of tax received by a municipality when a long-term tax abatement is granted for the rehabilitation or improvements made in the development or redevelopment of a redevelopment area or for a redevelopment relocation housing project pursuant to that law.

     Under current law, a municipality receiving a payment in lieu of tax, referred to in the law as the "annual service charge," is required to remit to the county in which the municipality is located, five percent of the amount of the annual service charge.  This bill amends the law to require the municipal tax collector or finance officer, upon receipt of the annual service charge, to immediately notify the municipality and the chief financial officer of the county within which the municipality is located.  Under the bill, within seven days of the notification, the municipal tax collector or finance officer is required to directly transmit the five percent remittance to the chief financial officer of the county.    

     The law also requires that every redevelopment project approved by the municipality to be evidenced by a financial agreement between the municipality and the urban renewal entity, and the agreement cannot take effect until approved by ordinance of the municipality.  The bill further requires that notice of the time, date, and place of the public hearing required to be held prior to the approval of the ordinance on the financial agreement be provided to the chief financial officer of the county and the clerk to the board of county commissioner of the county within which the municipality is located.

      The bill also makes technical changes.

COMMITTEE AMENDMENTS:

      The committee amended the bill to expand the municipal designee from tax collector to tax collector or finance officer.