(The Center Square) – Municipalities would benefit from the state’s “Energy Tax Receipts Property Tax Relief Fund” in a measure being considered by the New Jersey Senate.
The measure, S-330/A-1012, which the New Jersey Senate Budget Committee advanced, would increase funding distributed to municipalities by roughly $330 million annually as part of a two-year phase-in period. Municipalities would be required to use the funds to reduce their property tax levy.
“Property taxes are a business issue, too,” New Jersey Business & Industry Association Vice President of Government Affairs Christopher Emigholz said in written testimony to the committee. “New Jersey’s property taxes are the highest in the nation and represent the largest state and local tax that businesses pay.”
Added Emigholz: “The $330 million distributed amounts to about a 1% reduction in total statewide levy of more than $31 billion.”
According to an Office of Legislative Services estimate, under the bill’s phase-in schedule, municipalities would receive an additional $165.1 million in fiscal 2023. The amount would grow to $330.1 million starting in fiscal 2024.
An earlier version of the proposal would have phased in the additional funds over five years. Proponents say the money would equal the amount the state has diverted in recent years.
“This is direct tax relief to cities and towns throughout New Jersey that will help ease the burden for homeowners and businesses and the higher deduction will produce real savings for tenants,” state Sen. Troy Singleton, D-Burlington, said in a statement.