True or False: The Local Finance Board may grant waivers to Tax Levy Cap.

The statement that the Local Finance Board may grant waivers to the Tax Levy Cap is false. The Tax Levy Cap, established in New Jersey as part of the cap law, restricts the amount a municipality can increase its tax levy based on a fixed percentage. It is primarily designed to control property tax increases and ensure that spending remains within sustainable limits.

Waivers to this cap are not automatically granted and must be justified. The Local Finance Board does not have broad authority to grant waivers without specific criteria or justifications being met. Generally, municipalities are expected to adhere to the guidelines set by the cap law.

Responses that imply waivers are granted based on emergencies or the size of the municipality may confuse the rules that govern local finance. While there can be special circumstances that might allow for an increase in the tax levy, these would typically involve thorough scrutiny and a clear rationale, making the assertion that waivers are routinely granted under certain conditions incorrect. Therefore, the statement is indeed false.