Edison Urges NJ to Restore Energy Tax Funds For Property Tax Relief

EDISON, NJ – The Council recently passed a resolution asking the state to end the diversion of municipal funds collected for taxes on gas and electric utilities.

Edison is joining other municipalities in calling upon State policy makers to end the diversion of the funds

These funds were initially intended for municipal programs and services and have been collected by the State over the past several years.

The state was supposed to redistribute the funds to municipalities so they could then provide assistance to residents, but that has not happened.

“For years State budget makers have diverted funding from Energy Taxes to fund State programs; and instead of being spent on local programs and services and used to offset property taxes, the money has been spent as successive Legislatures and Administrations have seen fit,” the resolution said.

“By keeping flat funding of the appropriation for CMPTRA year-over-year, State Budget makers have been able to continue collecting Energy Taxes, while keeping additional revenue that should have been returned to provide property tax relief.”

According to the resolution, in 2024 alone, the Energy Tax Receipts Program should have received over $350 million to restore municipalities back to 2008 levels, however, the State’s diversion of Energy Taxes has continued to grow, causing more of a financial gap.

The cumulative impact of years of flat funding and underfunding has left many municipalities with serious needs and burdensome property taxes, officials said.

“We, respectfully, call on State policy makers to end the diversion of our municipal resources to cover State spending and to provide us with this important tool to relieve the worst-in-the-nation property tax burden borne, for too long, by the people of New Jersey,” the resolution said.

The resolution was adopted unanimously by council.

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