Limits and clarifies use of cap banking by school districts.

This bill (A245) limits how New Jersey school districts can use "cap banking" to increase property taxes. It clarifies that districts may only bank unused tax levy capacity if they had a decrease in their current year tax levy, and prohibits any single year increase exceeding 6% over the prior year's levy. Districts that use cap banking in one year cannot use it for the next two consecutive years, requiring them to rebuild their banked amount before future use. The bill directly affects all New Jersey school districts that rely on cap banking to exceed annual tax levy limits. These changes aim to prevent large, sudden property tax hikes by restricting how districts can accumulate and deploy unused levy capacity.