N.J. Admin. Code § 5:30-18.3

Current through Register Vol. 57, No. 1, January 6, 2025

Section 5:30-18.3 - Annual cap on property tax credits

(a) Prior to the beginning of each budget year, the governing body of a municipality or county that has established a charitable trust fund shall establish an annual property tax credit cap for each charitable fund; except that for 2018, the governing body may establish an annual property tax credit cap no later than the date on which each charitable fund begins to accept donations. Starting in 2019, county budgets and municipalities with calendar year budgets may amend a charitable fund's annual property tax credit cap upon certification of the current-year budget tax levy.

(b) The maximum cumulative credit-eligible donation cap for the subsequent budget year for all local unit charitable funds shall not exceed 85 percent of the tax levy. The maximum cumulative credit-eligible donation cap for the 2018 budget year shall not exceed 85 percent of the total tax levy in the 2018 budget year. When calculating the annual property tax credit cap, the percentage of the appropriation attributable to the tax levy shall not exceed 85 percent, unless the Director approves the use of a greater percentage.

The annual property tax credit cap shall be calculated as follows:

Step one: tax levy /local unit budget = percentage of appropriation attributable to tax levy.

Step two: (appropriation(s) for specific purpose(s) of charitable fund) x (percentage of appropriation attributable to tax levy) = cap on credit-eligible donations to charitable fund.

Step three: (cap on credit-eligible donations to charitable fund) x 90% = annual property tax credit cap for charitable fund.

A municipality, county, or school district may apply to the Director to change from 85 percent, the percentage by which the total tax levy is multiplied, or from 90 percent, the percentage by which the cap on credit-eligible donations to the charitable fund is multiplied.

(c) The property tax credit cap shall not be construed to limit all donations to the charitable fund; rather the caps under (b) above shall only limit the amount of donations that are credit-eligible in relation to property tax payments.

N.J. Admin. Code § 5:30-18.3

Adopted by 50 N.J.R. 2247(a), effective 9/21/2018

Amended by 51 N.J.R. 828(a), effective 4/30/2019