Bill Text: NJ S2152 | 2026-2027 | Regular Session | Introduced
Bill Title: Modifies procedure for fire districts to request exemption from property tax levy cap.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-01-13 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S2152 Detail]
Download: New_Jersey-2026-S2152-Introduced.html
STATE OF NEW JERSEY
222nd LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Senator PAUL D. MORIARTY
District 4 (Atlantic, Camden and Gloucester)
SYNOPSIS
Modifies procedure for fire districts to request exemption from property tax levy cap.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act modifying the procedure for fire districts to request exemption from the 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 11 of P.L.2007, c.62 (C.40A:4-45.46) is amended to read as follows:
11. a. (Deleted by amendment, P.L.2009, c.44)
b. (1) The governing body of a local unit that is not a fire district may request approval, through a public question submitted to the legal voters residing in its territory to increase the amount to be raised by taxation by more than the allowable adjusted tax levy. Approval shall be by an affirmative vote of in excess of 50 percent of the people voting on the question at the election. The local unit budget proposing the increase shall be introduced and approved in the manner otherwise provided for budgets of that local unit at least 20 days prior to the date on which the referendum is to be held, and shall be published in the manner otherwise provided for budgets of the local unit at least 12 days prior to the referendum date, unless otherwise directed by the Director of the Division of Local Government Services in the Department of Community Affairs.
(2) The public question to be submitted to the voters at the referendum shall state only the amount by which the adjusted tax levy shall be increased by more than the otherwise allowable adjusted tax levy, and the percentage rate of increase which that amount represents over the allowable adjusted tax levy. The public question shall include an accompanying explanatory statement that identifies the changes in appropriations or revenues that warranted the governing body's decision to ask the public question; or, in the alternative and subject to the approval of the Director of the Division of Local Government Services in the Department of Community Affairs, a clear and concise narrative explanation of the circumstances for the increased adjusted tax levy being proposed.
(3) Unless otherwise provided pursuant to section 1 of P.L.1989, c.31 (C.40A:4-5.1), a referendum conducted pursuant to this subsection shall be held:
(a) for calendar year budgets only on the fourth Tuesday in January and the second Tuesday in March; and
(b) for fiscal year budgets, only the last Tuesday in September, or the second Tuesday in December.
(4) Any decision of the voters rejecting an increase to the tax levy cap under this subsection shall be final and conclusive, and no appeal or review shall be taken therefrom and no waiver application shall be made to the Local Finance Board.
(5) The director is authorized to act as necessary in order to consolidate ballot questions and procedures when a governing body elects to hold a referendum under both this section and section 9 of P.L.1983, c.49 (C.40A:4-45.16).
(6) Notwithstanding the provisions of this subsection, a board of fire commissioners may request approval from the Local Finance Board to increase the amount to be raised by taxation by more than the allowable adjusted tax levy. In the decision to approve or deny the board's request, the Local Finance Board shall consider any changes in appropriations or revenues, or other circumstances, that warranted the board's request. Any decision of the Local Finance Board rejecting an increase to the tax levy cap under this paragraph shall be final and conclusive for the fiscal year for which the request was made, and no appeal or review shall be taken therefrom and no waiver application shall be made.
c. (Deleted by amendment, P.L.2010, c.44)
d. The adjusted tax levy shall be increased or decreased accordingly whenever the responsibility and associated cost of an activity performed by a local unit is transferred to or from a local unit, other government entity, or other service provider.
(cf: P.L.2011, c.134, s.60)
2. This act shall take effect immediately and shall apply to fire district budgets adopted after the date of enactment.
STATEMENT
This bill modifies the procedure for fire district boards of commissioners to seek an exemption from the two percent property tax levy cap.
Under current law, fire districts, along with municipalities, counties, and solid waste collection districts, are required to submit a public question to the legal voters residing in its territory to increase the amount to be raised by taxation by more than the allowable adjusted tax levy.
The bill would allow fire districts to request approval from the Local Finance Board to increase the amount to be raised by taxation by more than the allowable adjusted tax levy. In the decision to approve or deny the board's request, Local Finance Board would be required to consider any changes in appropriations or revenues, or other circumstances, that warranted the fire district's request. Any decision of the Local Finance Board rejecting an increase to the tax levy cap would be final and conclusive for the fiscal year for which the request was made, and no appeal, review, or waiver application would be permitted.
