Assemblyman Nick Chiaravalloti (D-31) has introduced a bill that will give local school districts five percent of the annual service charge from payment in lieu of taxes (PILOT) agreements.
“Property taxpayers and school districts are both suffering in the face of NJ’s continuing budget crisis. We need creative measures that will aid underfunded school districts and alleviate pressure on property taxpayers,” Chiaravalloti said in a statement.
“This legislation would provide an additional source of funding to school districts and discourage municipalities that participate in PILOT programs from increasing property taxes to fund their local school districts.”
Specifically, the legislation requires that at least five percent of the annual service charge collected under the “Long Term Tax Exemption Law” to be paid to the local boards of education from real estate developments.
The legislation was developed in response to calls from constituents to provide more funding for the board of education from real estate developments, Chiaravalloti said.
“ … Although there are many concerns about the existing use of abatements, they have been a valuable tool in emerging development throughout New Jersey.”
The Bayonne City Council will be voting on a nearly identical measure at their meeting this evening, which begins at 7 p.m.
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