Assemblyman Gerry Scharfenberger, PhD has introduced his first bill.
A3284 would mandate that the Energy Receipts Tax, the fees that public utilities pay in lieu of property taxes, be paid directly to the municipalities they are intended for, rather than diverted into the State’s General Fund.
Scharfenberger told MMM that his bill would have a positive impact on Middletown’s budget in the amount of $6.7 million. Holmdel would see a $1.1 million relief for property tax payers.
“The Energy Receipts Tax was designed to compensate municipalities for the services and safety that they provide to public utilities,” Scharfenberger said. “But over the years administrations of both parties have diverted the money to plug holes in their annual budgets. My legislation will put an end to that practice and provide much needed property tax relief.”
The bill was introduced last week and referred to the Assembly State and Local Government Committee.