Committee Passes Singleton Bill to Assist in Property Tax Relief

Trenton – Legislation sponsored by Senate Community and Urban Affairs Committee Chair Senator Troy Singleton, which would increase funds distributed to municipalities from the “Energy Tax Receipts Property Tax Relief Fund” over a period of five years to restore municipal aid reductions, passed the Senate Community and Urban Affairs Committee today.

“Affordability is the number one problem facing our state, and it can no longer be ignored,” said Senator Singleton (D-Burlington). “By increasing the funds our municipalities receive through the Energy Tax Receipts Property Tax Relief Fund, we are ultimately providing direct tax relief to our towns. Clearly, this bill is a win for property taxpayers.”

Under the bill, S-51, municipalities would receive additional funding from the “Energy Tax Receipts Property Tax Relief Fund” as follows:

1. In fiscal year 2017 an amount equal to 20 percent of the difference between the total payment of Consolidated Municipal Property Tax Relief Aid (CMPTRA) and Energy Tax Receipts Property Tax Relief Aid (ETR) in fiscal year 2008 and fiscal year 2012;

1. 40 percent of that difference amount would be paid in fiscal year 2018;

1. 60 percent of that difference amount would be paid in fiscal year 2019;

1. 80 percent of that difference amount would be paid in fiscal year 2020; and

1. 100 percent of that difference amount would be paid in fiscal year 2021.

The bill would also amend current law to require a municipality to subtract any additional amount of ETR aid it receives from its adjusted tax levy when calculating the levy for its next fiscal year.

The bill was released from committee by a vote of 5-0.