S2409

An Act concerning property tax exemption for certain energy cost saving measures and supplementing chapter 4 of Title 54 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in this act:

“Board of appeals” means the county construction board of appeals established under section 9 of P.L.1975, c.217 (C.52:27D-119 et seq.).

“Commissioner” means the Commissioner of Community Affairs.

“Local enforcing agency” means the enforcing agency in any municipality provided for under the “State Uniform Construction Code Act,” P.L.1975, c.217 (C.52:27D-119 et seq.) and regulations adopted pursuant thereto.

“Energy cost savings measure” means any alterations to an existing property structure designed to reduce energy consumption, building operating costs, or consumption of water.

2. An energy cost savings measure that has been certified by the local enforcing agency to reduce the consumption of energy or water within a structure on a property, shall be exempt from taxation under chapter 4 of Title 54 of the Revised Statutes. The owner of real property that has been improved by the installation of an energy cost savings measure may have exempted annually from the assessed valuation of the real property a sum equal to the remainder of the assessed valuation of the real property with the energy cost savings measure included, minus the assessed valuation of the real property without the energy cost savings measure included.

3. No certification shall be made by the local enforcing agency as provided herein, except upon written application herefore, which application shall be made under oath on a form prescribed by the Director of the Division of Taxation in the Department of the Treasury and provided for the use of claimants by the local enforcing agency. The local enforcing agency may at any time inquire into the right of a claimant to the exemption and for that purpose the local enforcing agency may require the filing of a new application or the submission of such proof as the local enforcing agency shall deem necessary to determine the right of the claimant to the continuance of the exemption. The local enforcing agency shall have the right to make an inspection of the premises which are the subject of the claim for exemption under this act.

4. The local enforcing agency, when requested for a certification pursuant to this act, shall certify a property’s energy cost savings measure as being capable of reducing consumption of energy or water on a property, whenever the local enforcing agency finds that the energy cost savings measure conforms to standards established through rules and regulations adopted by the commissioner pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill). The certificate shall contain information identifying the energy cost savings measure and cost thereof and shall be in such form and detail as the Director of the Division of Taxation in the Department of the Treasury shall prescribe. The certificate shall be provided to the applicant therefor, with a copy retained on file by the local enforcing agency, and a copy of the certificate shall be sent to the assessor of the taxing district in which the property containing the energy cost savings measure is located. The exemption from taxation for the energy cost savings measure shall become effective for the tax year following the year in which certification has been granted and thereafter during its use on the property.

5. a. Any person aggrieved by any action of the local enforcing agency may seek review before the board of appeals.

b. Any person aggrieved by any action of the assessor or of the county tax board may seek a review before the Director of the Division of Taxation in the Department of the Treasury pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.).

6. a. The Director of the Division of Taxation in the Department of the Treasury, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt any rules and regulations necessary for the proper certification of any tax exemption pursuant to this act, the form of any certificate to be issued, and any other matter related to the exemption.

b. The Department of Community Affairs, in consultation with the Board of Public Utilities, shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), standards with respect to the technical sufficiency of energy cost savings measures for purposes of qualification for exemption.

7. This act shall take effect immediately.

STATEMENT

This bill would establish a property tax exemption for the installation of energy cost savings measures. The bill defines “energy cost savings measure” as any alteration to an existing property structure designed to reduce energy or water consumption.

Under the bill, an energy cost savings measure installed in any building, whether residential, commercial or industrial, which has been certified by the local enforcing agency would be exempt from taxation under chapter 4 of Title 54 of the Revised Statutes. The owner of real property which is equipped with a certified energy cost savings measure may have exempted annually from the assessed valuation of the real property the portion of the property’s value which is attributable to the installation of a certified energy cost savings measure.

This bill would require the Department of Community Affairs, in consultation with the Board of Public Utilities, to adopt standards with respect to the technical sufficiency of any energy cost savings measure for purposes of qualification for the tax exemption.