As stated a few times before, contact NJSP Firearms Unit in Trenton. They will do something about it. There is really no need to make such a big deal. The local police are breaking the law by asking you to fill out that form.
Fill out the two state forms you do have to fill out, and turn them in without the town form. If asked, politely tell whoever you are turning the forms in to, that you will not fill out the other form because it is illegal, and cite the statute.
If they give you any trouble at all, call NJSP. Follow up your phone calls once a week until you have your permit. There's no reason to let them get away with this.