Bill Text: NJ S3118 | 2012-2013 | Regular Session | Introduced
Bill Title: Adds to property tax levy cap exclusions increases in flood insurance premiums.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-12-16 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S3118 Detail]
Download: New_Jersey-2012-S3118-Introduced.html
Sponsored by:
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
SYNOPSIS
Adds to property tax levy cap exclusions increases in flood insurance premiums.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the calculation of the local 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 10 of P.L.2007, c.62 (C.40A:4-45.45) is amended to read as follows:
10. a. (1) In the preparation of its budget the amount to be raised by taxation by a local unit shall not exceed, except as provided in paragraph (2) of this subsection, the sum of new ratables, the adjusted tax levy, and the total of waivers approved pursuant to section 11 of P.L.2007, c.62 (C.40A:4-45.46); provided, however, that in the case of a county, the amount to be raised by taxation shall not exceed the amount permitted by section 4 of P.L.1976, c.68 (C.40A:4-45.4).
(2) A local unit that has not been granted approval for a waiver pursuant to section 11 of P.L.2007, c.62 (C.40A:4-45.46), may add to its adjusted tax levy in any one of the next three succeeding years, the amount of the difference between the maximum allowable amount to be raised by taxation or county purposes tax, as applicable, for the current local budget year pursuant to paragraph (1) of this subsection and the actual amount to be raised by taxation or county purposes tax, as applicable, for the current local budget year.
b. The following exclusions shall be added to the calculation of the adjusted tax levy:
increases in amounts required to be raised by taxation for capital expenditures, including debt service as defined by law; increases in pension contributions and accrued liability for pension contributions in excess of 2.0%; increases in health care costs equal to that portion of the actual increase in total health care costs for the budget year that is in excess of 2.0% of the total health care costs in the prior year, but is not in excess of the product of the total health care costs in the prior year and the average percentage increase of the State Health Benefits Program, P.L.1961, c.49 (C.52:14-17.25 et seq.), as annually determined by the Division of Pensions and Benefits in the Department of the Treasury; increases in flood insurance premiums in excess of 2.0% over the amount of the prior year's flood insurance premiums, except that for the initial year of a flood insurance expense resulting from changes to federal flood insurance rate maps, the entire cost shall be excluded; and extraordinary costs incurred by a local unit directly related to a declared emergency, as defined by regulation promulgated by the Commissioner of the Department of Community Affairs, in consultation with the Commissioner of Education, as appropriate.
If there are no exclusions, then the amount of the difference shall reduce the adjusted tax levy by that amount. Any cancelled or unexpended appropriation for any exclusion pursuant to this subsection or waiver pursuant to section 11 of P.L.2007, c.62 (C.40A:4-45.46), also shall be deducted from the sum of the exclusions listed in this subsection or directly reduce the adjusted tax levy if there are no exclusions.
(cf: P.L.2010, c.44, s.9)
2. This act shall take effect immediately.
STATEMENT
This bill would add to the current list of exclusions from the calculation of a local unit of government's property tax levy cap, increases in flood insurance premiums in excess of 2.0% from year to year. In the case of a first-year flood insurance resulting from changes to federal flood insurance rate maps, the entire cost would be an exclusion from the property tax levy cap.
It is anticipated that given the recent Federal Emergency Management Agency (FEMA) revisions to flood maps, certain municipalities, counties and other units of local government will face significant increases in the cost of flood insurance coverage.
