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December 18, 2012

Re:   Sample Resolution Supporting Direct Payment of Energy Taxes to Municipal Governments Available

Dear Mayor:

As reported in our December 6 letter (, a bill that would require payment of energy taxes directly to municipal governments (A-2753) has advanced to the Assembly floor. A companion measure (S-1923) awaits action in the Senate Community and Urban Affairs Committee.

This bill would require, commencing with State fiscal year 2014, that the State Treasurer make the calculation of the amounts due to municipalities pursuant to statutory law, adjusting for inflation, and that payments be made directly to the municipalities by the energy taxpayers. In State fiscal year 2014, the amount to be apportioned to, and collected by, the municipalities would be $1,108,115,000. That represents the amount which would have been required to be distributed to municipalities under the statutory provisions of the "Energy Tax Receipts Property Tax Relief Act," N.J.S.A.52:27D-438 et seq., including annual increases for inflation. The State Treasurer would advise each energy taxpayer of the amounts to be remitted directly to each municipality, based on the existing statutory apportionment method.

As amended by the Assembly Housing and Local Government Committee, A-2753 would also require the State to distribute to each municipality an amount equal to the difference between their total payment of Consolidated Municipal Property Tax Relief Aid (CMPTRA) and Energy Tax Receipts Property Tax Relief Aid (ETR Aid) in Fiscal Year 2008 and Fiscal Year 2012. This additional State aid would restore approximately $331 million in reductions to CMPTRA and ETR Aid that were eliminated due to State budget constraints in Fiscal Years 2009, 2010, and 2011.

We have posted a Sample Resolution in support of this initiative on our website at  Please consider action on this as soon as possible and let us know if your Legislators will support A-2753/S1923 for payment of energy taxes directly to municipal government.

If you have any questions contact Jon Moran at 609-695-3481, ext. 121 or

Very truly yours,

Hon. Janice S. Mironov, President                             William G. Dressel, Jr.
New Jersey State League of Municipalities                Executive Director
Mayor, East Windsor Township




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