Limits amount of real property that may be exempt from property taxation under "Long Term Tax Exemption Law."

S 2110 limits municipalities in New Jersey to exempting no more than 5% of their taxable property value from property taxes under the "Long Term Tax Exemption Law." This directly affects municipalities that grant long-term tax exemptions for redevelopment projects, preventing new agreements if their current exemption level exceeds the 5% threshold. The bill calculates the threshold by dividing the value of exempt property by the total taxable property value, then multiplying by 100. Municipalities above the limit cannot enter new tax exemption agreements until their exemption rate drops below 5%, though they may reapply if the rate later decreases. The law aims to prevent excessive tax exemptions that could unfairly reduce state school funding allocations.