Current Legislative Action
As part of the state’s FY2023 budget package, in addition to a flat Energy Tax Receipts and Consolidated Municipal Property Tax Relief (CMPTRA), $75 million in Municipal Relief Funds was included as the first step towards full Energy Tax Receipts restoration. The proposed FY2024 budget does not include this funding.
While 2023's budget allocation was a positive first step in the right direction after years of neglecting the restoration of crucial funding, a one-time allocation does not address the ever-growing financial gap. The allocation of over $350 million into the 2024 Fiscal Year New Jersey state budget would restore funding, which has been annually diverted from dedicated municipal funding programs–the Energy Tax Receipts Property Tax Relief Fund (ETR) and the Consolidated Municipal Property Tax Relief Aid (CMPTRA).
For years, State officials from both sides of the aisle have diverted funding from Energy Taxes to plug holes in the State budget and to fund State programs. The restoration of this funding to New Jersey’s municipalities is long overdue.
Allocating this vital funding would eventually bring funding for all municipalities back to 2008 levels.
We strongly urge the full restoration of the Energy Tax Receipts Property Tax Relief Fund to municipalities and encourage the Governor and Legislature to incorporate this essential municipal funding into the 2024 Fiscal Year New Jersey State budget. This funding is a necessary step in addressing property tax affordability in the state.
The New Jersey State League of Municipalities (NJLM), the New Jersey Conference of Mayors (NJCM), and the New Jersey Urban Mayor’s Association (NJUMA) issued a letter signed by 401 mayors from across the state urging the State Legislature to fully fund the Energy Tax Receipts Property Tax Relief Act in the FY24 State budget.