40:48K-1 Findings, declarations.
1. The Legislature finds and declares:
a. Commercial real property is a critically important component of a municipality's property tax base.
b. A flourishing downtown or commercial area provides not only a stable property tax base for a municipality, and property tax collections that do not increase the burden on homeowners, but also a gathering place for municipal events and social interactions, which foster a strong sense of community between residents.
c. In a State with chronically high property taxes, credits or other rewards applied against property taxes and earned through purchasing goods or services in the local area serve as an effective incentive for shopping locally, and even participating customers living outside the municipality may earn rewards, which then can be used to pay property taxes in their own municipalities.
d. A thriving commercial district, particularly a walkable downtown, is appealing to families when they are looking for a municipality in which to establish their family home.
e. Especially in economically trying times, such as those visited upon the State in relation to the COVID-19 pandemic, it is critical to ensure local governments may adopt innovative stimulus initiatives to encourage municipal residents and residents of nearby communities, and employees of local businesses, to support local businesses by shopping locally, so that those business owners are able to earn enough income to support their families and keep their businesses open and prospering.
f. Ensuring municipalities may approve a program encouraging local shopping through property tax rewards, administered by an outside vendor or company, with financial protections for participants and municipalities, would benefit municipalities and individual business owners.
g. To date, many municipalities have adopted such programs. However, those existing programs may not offer specific financial protections to the municipalities that have authorized them, or the participants utilizing them.
h. Therefore, it is important and necessary to statutorily authorize such programs and provide financial protections for municipalities and program participants.
L.2021, c.99, s.1.