NJ S1955

Caps long-term property tax exemptions at 5% of a municipality's total property value (calculated as exempt property value divided by exempt value plus net taxable value, multiplied by 100)

Prohibits municipalities from entering new tax exemption agreements once the 5% threshold is exceeded, until the ratio drops back below the limit

Allows previously denied exemptions to be reconsidered if the municipality's threshold later falls below 5%, provided the new exemption would not push it back over the cap

Adds legislative findings that unrestrained use of long-term exemptions unfairly shifts school tax burdens to other districts by understating municipal property wealth used in State school aid calculations

Amends the "Long Term Tax Exemption Law" (P.L.1991, c.431) governing redevelopment projects and urban renewal entities