STATE OF NEW JERSEY
219th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION
Sponsored by:
Assemblyman EDWARD H. THOMSON
District 30 (Monmouth and Ocean)
Co-Sponsored by:
Assemblymen Wirths and Space
SYNOPSIS
Includes value of certain properties exempt from taxation in valuation used to calculate State school aid in SDA districts.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the calculation of State aid in certain school districts and supplementing P.L.2007, c.260 (C.18A:7F-43 et al.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. In the case of an SDA district, EQVAL, as defined in section 10 of P.L.2007, c.260 (C.18A:7F-52) shall include the value of any property exempt from taxation pursuant to the provisions of P.L.1991, c.431 (C.40A:20-1 et seq.).
2. This act shall take effect immediately and shall first apply to the first full school year following the date of enactment.
STATEMENT
Under the "School Funding Reform Act of 2008," P.L.2007, c.260 (C.18A:7F-43 et al.), a school district's State aid is determined, in part, by the district's capacity to raise revenue locally, as measured by the community's equalized property valuation and aggregate income. In the case of property that is exempt from taxation under the "Long Term Tax Exemption Law," P.L.1991, c.431 (C.40A:20-1 et seq.), the value of the property is omitted from the calculation. This may lead a school district that is located in a municipality with exempt property to receive a greater amount of State aid at the expense of other districts. This bill requires that the value of property exempt from taxation under that law be included when determining a community's wealth for the purpose of determining State school aid for an SDA (former Abbott) district.