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When it Rains it Pours: NJ Considers Enacting "Rain Tax"

The New Jersey Assembly and Senate have approved a bill titled the Clean Stormwater and Flood Reduction Act[1], which is designed to reduce flooding and water pollution. If enacted, this bill would allow counties and municipalities to create stormwater utilities, which will have the authority to collect fees from businesses and residents whose properties have paved surfaces, such as roads, driveways, parking lots and roofs.

This bill provides that fees will be assessed on property owners for the area of impervious surfaces on their properties. The fees will fund the newly created stormwater utilities, as well as help fund water quality monitoring and pollution reduction efforts.

Environmental groups have advocated for such a bill for several years to address the risk of pollution from motor oil, road salt, pesticides, and other sources of potential contamination associated with impervious surfaces, especially given that an estimated 10% of New Jersey’s land area consists of paved surfaces. If enacted, New Jersey would join at least 40 other states that already have stormwater utilities.

The bill is now awaiting Governor Phil Murphy’s signature. 

Click here for more information on this bill.

 [1] A2694; S1073

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