TAX SHARING:
Introduction | How Tax Sharing Works | Theory and Operation
Procedures for Making the Adjustment Payment | Tax Sharing Payment Schedule
Amendments to the Intermunicipal Tax Sharing Formula

Procedures for Making the Meadowlands Adjustment Payment

Thus far, no money has actually changed hands. All the transaction have been paper calculations. Of course, it would be highly impractical for each municipality to write checks to the Intermunicipal Account for the amount to be contributed and then to receive checks for the variety of payments to be made by the Commission. The simplest procedure is to compute the balance for each municipality as we have done. In this way, only one check charges hands and only one figure - the Meadowlands Adjustment Payment - enters the budgetary calculations of each municipalities.

The Meadowlands Commission will certify to the Chief Financial Officer of each Meadowlands municipality the amount of that municipality's Meadowlands Adjustment Payment and whether the payment is to come from the account to the municipality or from the municipality to the Account. The certification will be made in January so that the Meadowlands Adjustment Payment can be reflected in the budget of the municipality.

If the payment is from the Account to the municipality, it will be treated by the municipality as "Miscellaneous Revenues Anticipated". If the payment is from the municipality to the Account, it will be treated as special line item appropriation in the budget of the municipality. All payments will be made three equal installments - on May 15, August 15, November 15 of each year.

In order to gather the necessary information and calculate the Meadowlands Adjustment Payment in time for it to be included in the budget schedule of the municipalities, the payment in each year will be based on the calculations of the second preceding year. For example, for adjustment year 2012, the Commission uses comparison year 2009. The Meadowlands Adjustment Payments that resulted would be certified by the Meadowlands Commission by February 1, 2012, and would be reflected in the budget of each municipality.

Each municipality will then set the tax rate and collect taxes as usual from all property owners under its jurisdiction, both inside and outside the Meadowlands.

The procedure that has been described will effectuate all the Principles of Cost and Revenue Sharing that were described earlier. It will pool new value in the Meadows, pay all new school costs equitably among the fourteen municipalities. It guarantees each municipality the value of existing Meadows development and, it accomplishes all these principles with just one single payment for each municipality each year and without altering the normal functions of municipal assessments, taxation, and budgeting, and without disturbing the manner in which they are administered.

List of Exhibits and Schedules utilized in the Computation

Adjustment Payment Schedule (Exhibit A)
Adjustment Payments Averaging and Stabilization Fund Calculations (Exhibit A-1)
Detailed tax sharing computation schedule (Exhibit B)
In Lieu Tax Payments (Schedule 1)
Revision of Tax Rates (Schedule 2)
Meadowlands School Enrollment data (Schedule 3)
Meadowlands School Tax Data (Schedule 4)
Prior Years revised tax sharing computation schedules (Exhibits B-1 and B-2)

To view the entire 2012 Tax Sharing Schedule on-line click here

To obtain a hard copy of the exhibits and schedules listed above contact:

Chief Fiscal Officer
NJ Meadowlands Commission
One DeKorte Park Plaza
Lyndhurst, NJ 07071
Or through e-mail to: frank.elenio@njmeadowlands.gov