(Bayonne)-Assemblyman Nicholas A. Chiaravalloti (D- Hudson) has introduced legislation that requires at least 5% to be paid to the local boards of education from the annual service charge collected under the “Long Term Tax Exemption Law”. This legislation was developed in response to calls from constituents to provide more funding for the board of education from real estate developments.
“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,” said Chiaravalloti (D-Hudson). “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”.
“The legislation requires municipalities participating in a PILOT program to pay their respective board of education 5 percent of annual service charge collected under “Long Term Tax Exemption Law” under certain circumstances. Although there are many concerns about the existing use of abatements, they have been a valuable tool in emerging development throughout New Jersey.”