Towns would share tax-exempt project payments with school districts

Towns would give school districts a share of payments that tax-exempt projects make instead of paying property taxes. Sharing would cover agreements under New Jersey’s Long Term Tax Exemption Law and include regional school districts. The school share would match the share of property taxes distributed to the district. Housing would be exempt from school sharing if all residents are at least 62 and qualify as low- or moderate-income households. Regional school payments would follow the district’s rules for dividing costs among towns. Other member towns’ shares could not increase solely because of the exemption. Schools would use the revenue only to reduce the amount they need to collect through property taxes. The proposal would take effect immediately upon enactment. Towns would send schools their share immediately upon receiving the project payment.