Which source of revenue is considered miscellaneous for municipalities in New Jersey?

In the context of municipal finance in New Jersey, miscellaneous revenue typically refers to income that does not fit into the more commonly recognized categories, such as property taxes, state aid, or grants. Licenses and permits are considered miscellaneous revenue because they stem from various activities and are not derived from a consistent or predictable source.

Municipalities issue licenses and permits for a variety of activities, such as building permits, business licenses, and recreational permits. The income generated from these fees can vary significantly from year to year and is generally not part of the mainstay revenue streams. This variability and the diverse nature of the activities covered under licenses and permits categorize them as miscellaneous.

Other choices, like franchise taxes, property rental income, and investment income, have more specific classifications under municipal finance. Franchise taxes are regulatory in nature and related to the use of public rights-of-way, while property rental income stems from owned municipal property, and investment income comes from the interest earned on municipal funds held in reserve or investments. These sources have more stable and predictable characteristics compared to the fluctuating fees that fall under licenses and permits, making the latter fit into the miscellaneous category.