New Jersey § 52:27d-439

§ 52:27d-439.

a. Commencing July 1, 1997 there is established the “Energy Tax Receipts Property

Tax Relief Fund” as a special dedicated fund in the State Treasury into which there

shall be credited annually, commencing in State fiscal year 1998, the sum of $740,000,000

or the amount determined pursuant to subsection e. of this section from the following:

net payments under the “Sales and Use Tax Act,” P.L.1966, c. 30 ( C.54:32B-1 et seq. ) from sales and use of energy or utility services, net payments under the Corporation

Business Tax Act (1945), P.L.1945, c. 162 ( C.54:10A-1 et seq. ) from gas, electric, and gas and electric public utilities, whether municipal or

otherwise, that were subject to tax pursuant to the provisions of P.L.1940, c. 5 ( C.54:30A-49 et seq. ) prior to January 1, 1998, net payments under the Corporation Business Tax Act (1945),

P.L.1945, c. 162 ( C.54:10A-1 et seq. ) from telecommunications public utilities that were subject to tax pursuant to the

provisions of P.L.1940, c. 4 ( C.54:30A-16 et seq. ) as of April 1, 1997, net payments under P.L.1940, c. 5 ( C.54:30A-49 et seq. ) from sewerage and water corporations, net payments under the “Transitional Energy

Facility Assessment Act,” P.L.1997, c. 162 ( C.54:30A-100 through C.54:30A-113 ), and such sums from the General Fund as may be necessary to provide that the annual

amount credited to the fund shall equal $740,000,000 or the amount determined pursuant

to subsection e. of this section. b. Notwithstanding the provisions of P.L.1940, c. 4 ( C.54:30A-16 et seq. ), P.L.1940, c. 5 ( C.54:30A-49 et seq. ) and any other provision of law concerning the apportionment and distribution by

the State of taxes paid by public utilities, (1) There shall be paid during the State fiscal year 1998 and during each fiscal year

thereafter from the “Energy Tax Receipts Property Tax Relief Fund” to the municipalities

of the State the sum of $740,000,000 or the amount determined pursuant to subsection

e. of this section. (2) A portion of the $740,000,000 or the amount determined pursuant to subsection

e. of this section shall be allocated in a manner that provides that each municipality

shall receive an amount not less than the largest annual amount received or to be

received by the municipality from: (a) the distribution of $685,000,000 from the proceeds of the public utilities franchise

and gross receipts taxes under P.L.1940, c. 4 ( C.54:30A-16 et seq. ) and P.L.1940, c. 5 ( C.54:30A-49 et seq. ) in calendar year 1994, 1995 or 1996; or (b) the distribution of $685,000,000 from the proceeds of the public utilities franchise

and gross receipts taxes under P.L.1940, c. 4 ( C.54:30A-16 et seq. ) and P.L.1940, c. 5 ( C.54:30A-49 et seq. ) or from taxes and assessments collected in replacement of such taxes as released

by the Division of Local Government Services in the Department of Community Affairs

as fiscal year 1998 estimated franchise and gross receipts taxes State aid distributions

by municipality prior to the certification of apportionment of such funds by the Director

of the Division of Taxation and the amounts required pursuant to subsection d. of

this section. (3) A portion of the $740,000,000 or the amount determined pursuant to subsection

e. of this section shall be allocated in a manner that provides that each municipality

shall receive an amount equal to the difference, if any, between the amount it received

pursuant to paragraph (2) of this subsection and the sum of the amounts that the municipality

received pursuant to the certification made in the 1997 calendar year released by

the Division of Local Government Services in the Department of Community Affairs as

the fiscal year 1998 estimated franchise and gross receipts taxes State aid distribution

of $685,000,000 and the certification of the 1997 fiscal year distribution of $45,000,000. (4) The portion of the $740,000,000 or the amount, not more than $755,000,000, determined

pursuant to subsection e. of this section remaining after the allocations pursuant

to paragraphs (2) and (3) of this subsection shall be distributed in proportion to

the amounts distributed pursuant to paragraph (2) of this subsection. c. (1) The funds distributed pursuant to paragraphs (2) and (4) of subsection b. of

this section shall be distributed annually to municipalities on the following schedule:

July 15, 35% of the total amount due; August 1, 10% of the total amount due; September

1, 30% of the total amount due; October 1, 15% of the total amount due; November

1, 5% of the total amount due; and December 1, 5% of the total amount due. (2) The funds distributed pursuant to paragraph (3) of subsection b. of this section , prior to January 1, 2002 for all municipalities, and distributed after January 1,

2002 for municipalities operating on a State fiscal year basis, shall be distributed annually to those municipalities on or before June 30. The funds distributed after January 1, 2002 pursuant to paragraph (3) of subsection

b. of this section to calendar year municipalities shall be distributed annually on

or before July 15. d. The allocation set forth in paragraph (2) of subsection b. of this section shall

be adjusted to increase each appropriate municipal distribution by the amount necessary

to: (1) make corrections to apportionment valuations or distribution values made by the

Director of the Division of Taxation in the Department of the Treasury pursuant to R.S.54:30-2 ; and (2) correct equitable distortions, as determined by the State Treasurer, resulting

from the application of section 2 of P.L.1980, c. 10 ( C.54:30A-24.1 ) and section 4 of P.L.1980, c. 11 ( C.54:30A-61.1 ). The director shall report to the Legislature, on or before July 15, 1997, the amount

and distribution of the corrections pursuant to paragraphs (1) and (2) of this subsection. e. The amount credited to the “Energy Tax Receipts Property Tax Relief Fund” shall

be $745,000,000 for State fiscal year 1999, $750,000,000 for each of State fiscal

years 2000 and 2001, $755,000,000 for State fiscal year 2002, and for each fiscal

year thereafter the amount equal to the amount credited in the prior fiscal year multiplied

by the sum of 1.0 and the index rate or zero, whichever is greater. As used in this section, “ index rate ” means the rate of annual percentage increase, rounded to the nearest half-percent,

in the Implicit Price Deflator for State and Local Government Purchases of Goods and

Services, computed and published quarterly by the United States Department of Commerce,

Bureau of Economic Analysis, calculating the annual increase therein at the second

calendar quarter which occurred in the next preceding State fiscal year. The Director of the Division of Local Government Services shall promulgate annually

the index rate to apply in the next following State fiscal year which shall be the

same as the index rate determined pursuant to section 4 of P.L.1983, c. 49 ( C.40A:4-45.1a ). Any amount of aid distributed to a municipality in excess of the amount distributed

to the municipality from the “Energy Tax Receipts Property Tax Relief Fund” during

the State fiscal year 2002 shall be used solely and exclusively by each municipality

for the purpose of reducing the amount the municipality is required to raise by local

property tax levy for municipal purposes. f. Notwithstanding any other provision of this section or any other provision of law

to the contrary, if any municipality paid a county for an amount for county purposes

from the amount it received from its apportionment of taxes according to the limitations

on the municipalities apportionment under section 4 of P.L.1980, c. 11 ( C.54:30A-61.1 ), the highest amount of that payment during calendar years 1994, 1995, and 1996 shall

be paid annually directly to that county by the State Treasurer and be deducted from

that municipality's distribution otherwise determined pursuant to paragraph (2) of

subsection b. of this section.