Sponsored by:
Senator PAUL A. SARLO
District 36 (Bergen, Essex and Passaic)
SYNOPSIS
Revises responsibility for meadowlands adjustment payments.
CURRENT VERSION OF TEXT
As reported by the Senate Budget and Appropriations Committee on June 16, 2011, with amendments.
An Act revising responsibility for meadowlands adjustment payments, and amending, supplementing, and repealing various sections of law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 59.1 of P.L.1968, c.404 (C.13:17-61) is amended to read as follows:
59.1. As used in this article, unless the context indicates another meaning or intent:
(a) "Adjustment year" means the year in which the respective obligations of the intermunicipal account and the constituent municipalities of the district are due and payable.
(b) "Intermunicipal account" means the administrative device established and administered by the commission to record all the transactions made pursuant to this article for the purpose of calculating the meadowlands adjustment payment for each constituent municipality, and to act as the clearinghouse for the transfer of the meadowlands adjustment payments among the constituent municipalities as required by this article.
(c) "Meadowlands adjustment payment" means, prior to the effective date of P.L. , c. (pending before the Legislature as this bill). the amount that is payable by each constituent municipality to the intermunicipal account, but on and after the effective date of P.L. , c. (pending before the Legislature as this bill), the amount that is payable by the State Treasurer to the intermunicipal account, or, with respect to either time period, the amount that is payable by the intermunicipal account to each municipality, as the commission shall determine the case to be, pursuant to the provisions of this article.
(d) "Resident enrollment" means the number of full-time pupils who are residents of the school district and who are enrolled in day schools on the last day of September during the school year in which calculation of aid is made and are attending the public schools of the school district or a school district or State teachers' college demonstration school in which the school district of residence pays tuition; school district may count in its enrollment any pupil regularly attending on a full-time basis a county vocational school in the same county, for which the school district pays tuition.
(e) "Base year" means the calendar year 1970.
(f) "Comparison year" means the second calendar year preceding the adjustment year.
(g) "Apportionment rate" means a rate determined as follows:
(1) The total property taxes levied for local, school, and veterans' and senior citizens' purposes, as certified pursuant to R.S. 54:4-52, of the municipality in the comparison year after the meadowlands adjustment payment made in that comparison year has been subtracted or added, as the case may be, divided by
(2) The aggregate true value of all taxable real property, exclusive of Class II railroad property, located in the municipality, both within and without the district, in the comparison year, as determined by the Director of the Division of Taxation on October 1 of the comparison year, pursuant to P.L.1954, c.86, as amended, as the same may have been modified by the tax court. If a tax appeal is decided after calculations are made for an adjustment year, the next year's calculations must show a retroactive correction for the applicable preceding two years.
(cf: P.L.1989, c.26, s.1)
2. Section 64 of P.L.1968, c.404 (C.13:17-66) is amended to read as follows:
64. In the adjustment year 1973, and in each adjustment year thereafter, the commission shall establish an intermunicipal account and shall compute the amount payable to said account [by each of the constituent municipalities] and the amount due to each constituent municipality from said account for that year pursuant to this article.
(cf: P.L.1970, c.319, s.1)
3. Section 65 of P.L.1968, c.404 (C.13:17-67) is amended to read as follows:
65. (a) As used in this section, except as otherwise specifically provided:
(1) The increase or decrease in aggregate true value of taxable real property for any adjustment year shall be the difference between:
(i) The aggregate true value of that portion of taxable real property, exclusive of Class II railroad property, in the municipality located within the district in the comparison year, and
(ii) The aggregate true value of said property in the base year.
(2) Aggregate true value of all taxable real property shall be determined by aggregating the assessed value of all real property within the district boundaries in each constituent municipality, and dividing said total by the average assessment ratio as promulgated by the Director of the Division of Taxation in the Department of the Treasury for State school aid purposes on October 1 of the respective years for which aggregate true value is to be determined, pursuant to P.L.1954, c.86, as amended, as the same may have been modified by the tax court.
(3) For the purpose of calculating aggregate true value, the assessed value of taxable real property for any given year shall comprise:
(i) The assessed value shown on the assessment duplicate for such year, as certified by the county board of taxation and reflected in the county table of aggregates prepared pursuant to R.S.54:4-52, as the same may be modified by the county board of taxation upon appeal, plus
(ii) The prorated assessed values pertaining to such year, as certified by the county board of taxation on or before October 10, with respect to the assessor's added assessment list for such year, as the same may be modified by the county board of taxation upon appeal, plus
(iii) The assessed values pertaining to such year, as certified by the county board of taxation on or about October 10, with respect to the assessor's omitted property assessment list for such year, as the same may be modified by the county board of taxation upon appeal.
(b) (1) The amount payable to the intermunicipal account by each constituent municipality in any adjustment year prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be determined in the following manner: the apportionment rates calculated for the comparison year shall be multiplied by the increase, if any, in aggregate true value of taxable real property for such year; provided, however, that the amount payable to the intermunicipal account shall be limited to 10% of the amount so calculated in the adjustment year 1973 and shall increase 4 percentage points a year until 50% of the amount so calculated is paid into the intermunicipal account in the adjustment year 1983 through adjustment year 1988. Beginning in adjustment year 1989 the amount payable into the intermunicipal account shall be reduced by 2 percentage points a year until 40% of the amount calculated pursuant to this subsection is paid into the intermunicipal account in the adjustment year 1993 and thereafter.
(2) Following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the amount payable to the intermunicipal account by the State Treasurer in any adjustment year shall be 1[determined in the following manner: 40 percent of the product of the apportionment rates calculated for the comparison year multiplied by the increase, if any, in aggregate true value of taxable real property in each constituent municipality] identified as the meadowlands adjustment payment certified by the commission pursuant to section 72 of P.L.1968 c.404 (C.13:17-74)1 .
(c) If, during any comparison year, a constituent municipality has received a payment in lieu of real estate taxes on property located within the district, then, for the purpose of calculating the increase or decrease in the municipality's aggregate true value under subsection (a)(1) of this section, there shall be added to the aggregate true value otherwise determined for such comparison year an amount determined by dividing the amount of said in lieu payment by the municipal tax rate for the comparison year and dividing the result by the average assessment ratio for school aid purposes as promulgated by the Director of the Division of Taxation, as same may have been modified by the tax court.
(cf: P.L.1989, c.26, s.3)
4. Section 4 of P.L.1989, c.26 (C.13:17-67.1) is amended to read as follows:
4. Notwithstanding the provision of any law, rule or regulation to the contrary, no constituent municipality shall [pay out or] receive a meadowlands adjustment payment for any adjustment year in which its municipal equalized valuation per capita, as defined in section 1 of P.L.1978, c.14 (C. 52:27D-178) and as certified by the Director of the Division of Local Government Services in the Department of Community Affairs exceeds $1,000,000.00.
(cf: P.L.1989, c.26, ss.4, 5)
5. Section 71 of P.L.1968, c.404 (C.13:17-73) is amended to read as follows:
71. If, in any adjustment year, the amount payable to the constituent municipalities by the intermunicipal account for guarantee payments and service payments exceeds the amount payable to said account [pursuant to section 65 of this act], the total service payments payable to all constituent municipalities shall be reduced by the amount of the deficit and the service payment payable to each constituent municipality shall be reduced by the same ratio as the total service payment to all constituent municipalities was reduced.
(cf: P.L.1972, c.103, s.10)
6. Section 72 of P.L.1968, c.404 (C.13:17-74) is amended to read as follows:
72. (a) On or before February 1, 1973 and on or before February 1 of each year thereafter, the commission shall certify to the chief financial officer of each constituent municipality an amount, known as the meadowlands adjustment payment. The meadowlands adjustment payment for each constituent municipality shall be determined by adding all the payments payable to that municipality from the intermunicipal account for school district service payments, guarantee payments, and apportionment payments, if any, and by subtracting therefrom the obligations of that municipality to the intermunicipal account, as calculated pursuant to sections 65 and 71 of [this act] P.L.1968, c.404 (C.13:17-67 and 13:17-73), if any. The amount so derived shall be referred to as the meadowlands pre-adjustment payment. For calendar year 2000, the meadowlands adjustment payment shall be the average of the meadowlands pre-adjustment payments for calendar years 1999 and 2000. For calendar year 2001, the meadowlands adjustment payment shall be the average of the meadowlands pre-adjustment payments for calendar years 1999, 2000, and 2001. For calendar year 2002 and subsequent years, the meadowlands adjustment payment shall be the average of the meadowlands pre-adjustment payments for the prior three calendar years.
(b) If the meadowlands adjustment payment for any constituent municipality in any adjustment year is payable to the constituent municipality, the amount of said payment shall be identified in the municipal budget of that municipality for that year as "meadowlands adjustment" within the category "miscellaneous revenues anticipated," and shall be due and payable in three equal installments to be made by the intermunicipal account to that municipality on May 15, August 15, and November 15 of that year.
(c) [If the meadowlands adjustment payment for any constituent municipality in any adjustment year is payable to the intermunicipal account, the amount of said payment shall be entered as a special line item appropriation in the budget of the municipality for that year and shall be payable in three equal installments to be made by the municipality to the account on May 15, August 15, and November 15 of that year. No transfers may be made from said appropriation except as is herein provided.] (Deleted by amendment, P.L. , c. .) (pending before the Legislature as this bill)
(cf: P.L.1999, c.178, s.1)
7. Section 74 of P.L.1968, c.404 (C.13:17-76) is amended to read as follows:
74. An appeal or review may be taken by any constituent municipality regarding any alleged arithmetical or typographical error in the calculation [and payment] of the meadowlands adjustment payment.
(cf: P.L.1968, c. 404, s.74)
8. Section 78 of P.L.1968, c.404 (C.13:17-80) is amended to read as follows:
78. (a) The commission may enter into, from time to time, contract with one or more municipalities, counties or other public agencies for the operation of public improvements, works, facilities, services, or undertakings of such municipalities, counties, or agencies, or of the commission.
(b) Such contracts may be entered into pursuant to the terms of sections 1 through 35 of P.L.2007, c.63 (C.40A:65-1 through C.40A:65-35) and shall specifically provide for the services or improvements to be undertaken, the fee or fees to be charged for such services or facilities, the method of apportionment of such fees among the contracting parties, persons or officers or agencies responsible for the performance of the contract and other appropriate terms and conditions of participation.
(c) Such contracts shall be subject to approval by resolution of the commission and of the governing body of each participating municipality, county or other participating agency.
(d) The apportionment of costs and expenses may be based upon property valuations, population, area, and of such other factors as may be provided in the contract.
(e) The governing bodies of two or more contracting units in the district, including boards of education, may by resolution establish a cooperative pricing system as hereinafter provided. Any such resolution shall establish procedures whereby one participating contracting unit in the cooperative pricing system shall be empowered to advertise and receive proposals to provide prices for all other participating contracting units in such system for the provision or performance of goods or services; provided, however, that no contract shall be awarded by participating contracting unit for a purchase of goods or services in deviation from the specifications, price, or quality set forth by that participating contracting unit.
(f) The commission may establish a cooperative pricing system for the voluntary use of contracting units within the district. Purchases, contracts, and agreements shall be made, negotiated, or awarded by the commission pursuant to section 6.1 of P.L.1968, c.404 (C.13:17-6.1) and law governing State contracts.
(g) No vendor shall be required or permitted to extend prices, independently of any award made, to participating contracting units in a cooperative pricing system unless so specified in the request for proposal.
(cf: P.L.1968, c.404, s.78)
9. (New section) a. Notwithstanding any law, rule, or regulation to the contrary, beginning on September 1 next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and continuing each year thereafter, the commission shall certify to the State Treasurer the total amount of meadowlands adjustment payments that is payable to the intermunicipal account, and the State Treasurer shall pay that amount into the intermunicipal account.
b. For the year of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), the State Treasurer shall be responsible only for the final one-third installment payment into the intermunicipal account.
10. Section 2 of P.L.1999, c.178 (C.13:17-74.1) is repealed.
11. This act shall take effect immediately.