Modifies procedure for fire districts to request exemption from property tax levy cap.

A1336

ASSEMBLY, No. 1336

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman CODY D. MILLER

District 4 (Atlantic, Camden and Gloucester)

Assemblyman DAN HUTCHISON

District 4 (Atlantic, Camden and Gloucester)

SYNOPSIS

���� Modifies procedure for fire districts to request
exemption from property tax levy cap.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
modifying the procedure for fire districts to request
exemption from the 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 11 of P.L.2007,
c.62 (C.40A:4-45.46) is amended to read as follows:

���� 11. a.� (Deleted by amendment,
P.L.2009, c.44)

���� b.��� (1) The governing body
of a local unit
that is not a fire district
may request approval,
through a public question submitted to the legal voters residing in its
territory to increase the amount to be raised by taxation by more than the
allowable adjusted tax levy.� Approval shall be by an affirmative vote of in
excess of 50 percent of the people voting on the question at the election.� The
local unit budget proposing the increase shall be introduced and approved in
the manner otherwise provided for budgets of that local unit at least 20 days
prior to the date on which the referendum is to be held, and shall be published
in the manner otherwise provided for budgets of the local unit at least 12 days
prior to the referendum date, unless otherwise directed by the Director of the
Division of Local Government Services in the Department of Community Affairs.

���� (2)�� The public question to
be submitted to the voters at the referendum shall state only the amount by
which the adjusted tax levy shall be increased by more than the otherwise
allowable adjusted tax levy, and the percentage rate of increase which that
amount represents over the allowable adjusted tax levy.� The public question
shall include an accompanying explanatory statement that identifies the changes
in appropriations or revenues that warranted the governing body's decision to
ask the public question; or, in the alternative and subject to the approval of
the Director of the Division of Local Government Services in the Department of
Community Affairs, a clear and concise narrative explanation of the
circumstances for the increased adjusted tax levy being proposed.

���� (3)�� Unless otherwise
provided pursuant to section 1 of P.L.1989, c.31 (C.40A:4-5.1), a referendum
conducted pursuant to this subsection shall be held:

���� (a)�� for calendar year
budgets only on the fourth Tuesday in January and the second Tuesday in March;
and

���� (b)�� for fiscal year budgets,
only the last Tuesday in September, or the second Tuesday in December.

���� (4)�� Any decision of the
voters rejecting an increase to the tax levy cap under this subsection shall be
final and conclusive, and no appeal or review shall be taken therefrom and no
waiver application shall be made to the Local Finance Board.

���� (5)�� The director is
authorized to act as necessary in order to consolidate ballot questions and
procedures when a governing body elects to hold a referendum under both this
section and section 9 of P.L.1983, c.49 (C.40A:4-45.16).

����
(6)� Notwithstanding the
provisions of this subsection, a board of fire commissioners may request
approval from the Local Finance Board to increase the amount to be raised by
taxation by more than the allowable adjusted tax levy.� In the decision to approve
or deny the board�s request, the Local Finance Board shall consider any changes
in appropriations or revenues, or other circumstances, that warranted the
board�s request.� Any decision of the Local Finance Board rejecting an increase
to the tax levy cap under this paragraph shall be final and conclusive for the
fiscal year for which the request was made, and no appeal or review shall be
taken therefrom and no waiver application shall be made.

���� c.���� (Deleted by amendment,
P.L.2010, c.44)

���� d.��� The adjusted tax levy
shall be increased or decreased accordingly whenever the responsibility and
associated cost of an activity performed by a local unit is transferred to or
from a local unit, other government entity, or other service provider.

(cf: P.L.2011, c.134, s.60)

���� 2.� This act shall take effect
immediately and shall apply to fire district budgets adopted after the date of
enactment.

STATEMENT

���� This bill modifies the
procedure for fire district boards of commissioners to seek an exemption from
the two percent property tax levy cap.

���� Under current law, fire
districts, along with municipalities, counties, and solid waste collection
districts, are required to submit a public question to the legal voters
residing in its territory to increase the amount to be raised by taxation by
more than the allowable adjusted tax levy.�

���� The bill would allow fire
districts to request approval from the Local Finance Board to increase the
amount to be raised by taxation by more than the allowable adjusted tax levy.�
In the decision to approve or deny the board�s request, Local Finance Board
would be required to consider any changes in appropriations or revenues, or
other circumstances, that warranted the fire district�s request.� Any decision
of the Local Finance Board rejecting an increase to the tax levy cap would be
final and conclusive for the fiscal year for which the request was made, and no
appeal, review, or waiver application would be permitted.