Assembly Commerce and Economic Development Committee Statement to Assembly, No. 4806 (October 21, 2020)

Summary

An Assembly Commerce and Economic Development Committee statement to Assembly, No. 4806, State of New Jersey, dated October 21, 2020, reporting the bill favorably. The bill would let municipalities establish property tax reward programs, structured as local merchant loyalty programs run by a private entity the municipality designates. Participating customers would earn rewards as a percentage of purchases at participating local businesses, which would pay the rewards plus an administrative fee to the operator. Rewards earned by property owners between May 1st and April 30th would be subtracted from their property tax bills, and other participants would receive a rebate check by June 1st.

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ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE

STATEMENT TO

ASSEMBLY,
No. 4806

STATE
OF NEW JERSEY

DATED: OCTOBER
21, 2020

The Assembly Commerce and Economic Development Committee
reports favorably Assembly Bill No. 4806.

This
bill would authorize municipalities to establish and operate property tax
reward programs. A municipal property tax reward program would be structured
as a local merchant loyalty program and marketed as an economic development
tool to encourage people who live in and around a municipality to shop at
businesses located within the municipality.

A
property tax reward program would provide monetary rewards to participating
customers who purchase goods or services from participating businesses
(businesses located in the municipality that agree to provide rewards under the
program). The program would be operated by a private entity designated by the
municipality. The program operator would advise participating customers of the
businesses participating in the program, and of the reward each participating
business has agreed to provide under the program.

Under
the bill, a program operator would offer reward cards to municipal residents,
municipal employees, persons employed in the municipality, and, upon request,
residents of other municipalities. After receiving a reward card, a recipient
may register with the program operator to participate in the program. A
participating customer would present a reward card to a participating business when
making a purchase at the business in order to earn rewards. Program rewards
would be calculated as a percentage of the total sale by a participating
customer at a participating business.

Each
participating business would determine, and would inform the program operator
of, the reward the business would offer participating customers. A
participating business would pay the amount of the rewards earned by participating
customers to the program operator, plus a separate administrative fee for the
services of the operator.

The
amount of the annual rebate earned by a participating customer would equal the
total amount of all rewards earned by the customer annually, between May 1st
and April 30th.

No
later than June 1, annually, the operator would provide the municipal tax
collector with a list of program participants who are property owners and the
dollar amount of the annual rebate earned by each property owner between May
1st and April 30th; and would transfer to the municipal tax collector the total
dollar value of all annual rebates earned by those property owners between May
1st and April 30th. The tax collector would note on the property tax bill of
each participating customer the amount of the annual rebate earned, and would
subtract that amount from the total amount of property taxes due and payable on
the property for the tax year.

No
later than June 1st annually, the operator would issue to each participating
customer who is not a property owner within the municipality a rebate check for
the total reward amounts earned by the participating customer between May 1st
and April 30th.

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