Summary of ACR 53 (NJ, 222nd Legislature)
Purpose
- A concurrent resolution proposing a constitutional amendment to require full annual funding of two existing state aid programs for municipalities:
- Energy Tax Receipts Property Tax Relief Fund (Energy Tax Relief Aid)
- Consolidated Municipal Property Tax Relief Aid (CMPTRA)
- The amendment would establish dedicated funding levels for these programs and ensure annual distribution to municipalities, with amounts indexed for inflation.
Main goal
- Guarantee that energy tax-related aid and CMPTRA are fully funded and distributed every year, rather than potentially being diverted to general State purposes.
Key provisions and changes
1) Constitutional amendment (new paragraph 10 to Article VIII, Section II)
- Subparagraph a:
- Energy Tax Relief Fund funding floor:
- For FY starting July 1, 2019, the annual amount credited to the Energy Tax Receipts Property Tax Relief Fund must be at least:
- $1,136,000,000 multiplied by (1 + index rate, or 0 if negative),
with the index rate defined as the inflation rate per BEA methodology.
- For each subsequent fiscal year, the minimum amount must equal the prior year’s credited amount multiplied by (1 + index rate, or 0 if negative).
- Distribution to municipalities:
- Annually, the State's appropriations act must fund to municipalities an amount no less than the amount determined above.
- Each municipality shall receive the same proportionate share as it did in State FY 2018.
- Subparagraph b:
- CMPTRA funding floor:
- For FY starting July 1, 2019, the annual appropriations act must distribute to municipalities no less than the amount of CMPTRA distributed in FY 2009, adjusted by the index rate (1 + index rate or 0 if negative).
- For each following year, funding must be at least the prior year's CMPTRA distribution multiplied by (1 + index rate, or 0 if negative).
- Subparagraph c (definition of index rate):
- Index rate equals the annual percentage increase (rounded to the nearest 0.5%) in the Implicit Price Deflator for State and Local Government Purchases of Goods and Services, as published quarterly by BEA.
- The Director of the Division of Local Government Services shall annually promulgate the index rate for the next fiscal year, using the same or a similar basis as current statute (P.L.1983, c.49) or subsequent related law.
2) Implementation and timing
- Effective start date: July 1, 2019 (State fiscal year 2020).
- After constitutional amendment, the measure must be submitted to voters at the next general election occurring more than three months after final agreement, with publication requirements outlined.
- Ballot format includes Yes/No question and an interpretive statement explaining the impact.
3) Procedural aspects
- If approved by voters, the amendment would constitutionally require the State to fully fund and distribute:
- The Energy Tax Receipts Property Tax Relief Act aid
- CMPTRA aid
- The funding baselines (for index calculations) are:
- Energy Tax: FY 2018 planned distribution baseline
- CMPTRA: FY 2009 distribution baseline
- Inflation adjustments apply annually, ensuring perpetual growth aligned with the index.
Affected parties
- Municipalities: Guaranteed annual receipt of energy tax relief and CMPTRA funds, with distributions tied to historical baselines and inflation.
- State government: Required to appropriate and distribute at least the mandated amounts each year.
- Taxpayers and utility sectors: The energy tax and related utility assessments continue, but the constitutionally guaranteed distribution would constrain discretionary reallocations.
Notes
- The bill is currently at introduction (as of 2026-01-13) and referred to the Assembly State and Local Government Committee.
- Co-sponsors include Dawn Fantasia, Mike Inganamort, John DiMaio, and Erik Peterson.
