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Bill

Bill

S 1807

Requires municipalities to share certain payments in lieu of property taxes with school districts; informs counties, school districts, and DCA of certain information related to property tax exemptions and abatements.

2026-2027 Regular Session Introduced by Linda Greenstein and 2 co-sponsors

New Jersey bill requires municipalities to share payments-in-lieu-of-taxes with schools and mandates reporting on property tax exemptions and abatements across agencies.

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee
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WeVote Research Nonpartisan
Bill Summary · S 1807

Legislative bill overview

S 1807 mandates that New Jersey municipalities distribute a portion of payments in lieu of taxes (PILOT) revenues to local school districts. The bill also requires counties, school districts, and the Department of Community Affairs to share information about property tax exemptions and abatements to improve transparency and fiscal coordination.

Why is this important

School districts in New Jersey face chronic funding pressures, and PILOT revenues—typically generated from tax-exempt properties like colleges and nonprofits—currently flow entirely to municipalities. Requiring revenue-sharing could provide additional school funding while improved data sharing on tax exemptions would help policymakers understand the full fiscal impact of tax breaks on local budgets.

Potential points of contention

  • Municipal fiscal impact: Cities and towns may resist revenue sharing, arguing PILOT funds are essential for their own budgets and that schools should rely on state aid formulas rather than local revenue redistribution
  • Definition and scope ambiguity: The bill doesn't specify what percentage of PILOT revenues must be shared or which payments qualify, creating uncertainty about implementation costs and fairness
  • Tax exemption complexity: Requiring comprehensive reporting on exemptions and abatements may impose significant administrative burdens on multiple agencies and could expose politically sensitive decisions about which organizations receive preferential tax treatment

Compiled from official sources — confirm details with the bill’s official record.

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