Energy Tax Restoration Resource Center

Energy Tax Receipts in New Jersey

Originally, these were taxes assessed and collected locally from utilities for the use of public land, and the funds were used for municipal programs and services. Over time, for the convenience of the public utility companies, the State became the collection agency on behalf of municipalities, with the understanding that the State would remit payment to the municipalities – in the same manner of municipalities collecting tax revenue for the school districts and counties. Ultimately, the State rebranded the local municipal revenue as “State Aid,” or replacement programs intended to replace property tax relief funding. Overtime, this forced municipalities to turn to property taxes to supplement funding.

For more details, read this history of how the Energy Tax Receipts have evolved.