New Jersey § 52:27d-442

§ 52:27d-442.

a. In each State fiscal year, each municipality shall receive Consolidated Municipal

Property Tax Relief Aid equal to the amount of Consolidated Municipal Property Tax

Relief Aid received in the prior State fiscal year multiplied by the sum of 1.0 and

the index rate or zero, whichever is greater. However, any municipality that did not receive a distribution of Consolidated Municipal

Property Tax Relief Aid during fiscal year 1999 shall receive aid equal to the amount

of Consolidated Municipal Property Tax Relief Aid received in the prior State fiscal

year plus the product of the base year amount and the index rate or zero, whichever

is greater. As used in this section, “base year amount” means the sum of aid received by the

municipality in fiscal year 1995 under those State aid programs which were consolidated

in P.L.1995, c. 164 , the fiscal year 1996 annual appropriations act, under the Consolidated Municipal

Property Tax Relief Aid distribution. 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 for Consolidated Municipal Property Tax Relief Aid during the

State fiscal year 1999 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. If the amount of the increased distribution exceeds the amount required to be raised

by local property tax levy for municipal purposes, the balance of the increased distribution

shall be used to reduce the amount the municipality is required to collect for county

purposes, notwithstanding the provisions of this or any other law to the contrary. The Director of the Division of Local Government Services in the Department of

Community Affairs shall certify annually that each municipality has complied with

the requirements set forth herein. b. The amount appropriated for Consolidated Municipal Property Tax Relief Aid in a

State fiscal year shall be sufficient to fully fund the distribution to municipalities

as determined pursuant to subsection a. of this section.