Current Legislative Action

Legislation: Bill Numbers

S-330/A-3804

The above bills would increase distribution to municipalities over two years, and prohibits anticipation of certain revenue in municipal budgets.

Current Legislative Action

As part of the state’s FY2023 budget package, in addition to a flat Energy Tax Receipts and Consolidated Municipal Property Tax Relief (CMPTRA), $75 million in Municipal Relief Funds was included as the first step towards full Energy Tax Receipts restoration. 

Senator Singleton and Senate President Scutari introduced S-330, which increases the distribution to municipalities from the Energy Tax Receipts Property Tax Relief Fund, and restores funds to municipalities. The legislation was unanimously passed by the Senate on March 3, 2022. The legislation had bi-partisan support with Senators Connors, O’Scanlon, Polistina, Sarlo, Schepisi, Stanfield, Gill, Bramnick, Bucco, Johnson, Ruiz, Gopal, Holzapfel, Lagana, Madden, Pou, Turner, Greenstein, Diegnan and Zwicker signing on as co-sponsors. 

Assembly Representatives Benson, Moriarty and Jaffer sponsored the Assembly companion, A-3804, which was referred to Assembly State and Local Government Committee. The legislation has bi-partisan support with Assembly representatives Jasey, Reynolds Jackson, Moen, Mosquera, Spearman, Space, Wirths, Haider, Stanley, Auth, DeFuccio, Carter, Jimenez, Conaway, Sumter, Verrelli, Swain, Tully, McKnight, Danielsen, DeAngelo, Caputo, McKeon, Kennedy, Freiman, Karabinchak, Atkins, Mejia, Tucker, Calabrese, Clifton, and Park signing on as co-sponsors. However, the bill is still awaiting a committee hearing. 

We view A-3804/S-330 as the first major step in addressing property tax affordability as this legislation provides for a two-year phased-in restitution of the $331 million, which has been annually diverted from dedicated municipal funding programs – the Energy Tax Receipts Property Tax Relief Fund (ETR) and the Consolidated Municipal Property Tax Relief Aid (CMPTRA). During State Fiscal Years 2009, 2010, and 2011, this funding was diverted from towns to address State budget accounts. Ever since those dedicated revenues have not been distributed to municipalities. As drafted, the legislation would eventually bring funding for all municipalities back to 2008 levels.