New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A3392

Introduced
3/7/22  

Caption

Includes value of certain properties exempt from taxation in valuation used to calculate State school aid.

Impact

The immediate effect of A3392 would be to provide a more equitable distribution of state educational funding across various districts. By including exempt properties in the calculation of state aid, districts with higher property values, which may otherwise benefit from state funding due to the absence of taxable properties, would have these values reflected in their financial evaluations. Therefore, this change could lead to a more balanced allocation of funds, potentially benefitting underfunded districts and impacting the quality of education they offer.

Summary

Assembly Bill A3392 addresses the calculation of state aid for school districts in New Jersey by including the value of certain properties that are exempt from taxation. Currently, under the Long Term Tax Exemption Law, properties exempt from taxation are not factored into the valuation used to measure a community's ability to generate revenue, which can result in disparities in state aid among school districts. The bill aims to amend the existing law to require that the value of these exempt properties be considered when determining the local wealth of a district for state aid calculations.

Contention

Debate around A3392 may center on differing views regarding local tax revenue generation and educational equity. Proponents argue that this bill will help level the playing field for districts that rely heavily on local property taxes, ensuring they are not disadvantaged due to the presence of exempt properties in their municipalities. Conversely, opponents may be concerned that including these exemptions could negatively impact municipalities that have significantly invested in such properties, possibly lowering their allocated state funding and subsequently harming their educational resources.

Companion Bills

NJ S110

Same As Includes value of certain properties exempt from taxation in valuation used to calculate State school aid.

Previously Filed As

NJ A149

Includes value of certain properties exempt from taxation in valuation used to calculate State school aid in SDA districts.

NJ S56

Includes value of certain properties exempt from taxation in valuation used to calculate State school aid.

NJ A263

Requires Director of Division of Taxation to include sales of properties in age-restricted developments by third parties in table of equalized valuations.

NJ A1489

Requires five-year average of equalized property valuation be used in calculation of local share under State school funding formula.

NJ A516

Includes adjustment aid in calculation of districts' payments to charter schools under certain circumstances.

NJ A1224

Limits long term tax exemptions in municipalities with school districts receiving certain State school aid.

NJ S79

Requires Director of Division of Taxation to include sales of properties in age-restricted developments by third parties in table of equalized valuations.

NJ A4811

Exempts certain water quality management structures, funded by certain federal and State grants, from real property taxation.

NJ A4817

Allows for exclusion of certain properties from Highlands preservation area.

NJ A3799

Requires school performance report to include information about positive placement of graduates, including apprenticeships.

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