STATE OF NEW JERSEY
PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
Commences payment in lieu of taxes for tax exempt real property owned by Port Authority of New York and New Jersey.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning payments in lieu of taxation for certain Port Authority of New York and New Jersey property and supplementing Title 32 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding any law, rule or regulation to the contrary, including section 5 of P.L.1947, c.43 (C.32:1-35.5), section 11 of P.L.1962, c.8 (C.32:1-35.60), section 11 of P.L.1978, c.110 (C.32:1-35.82), section 7 of P.L.1925, c.37 (C.32:1-66), section 7 of P.L.1926, c.6 (C.32:1-90), section 7 of P.L.1927, c.3 (C.32:1-113), and section 14 of P.L.1931, c.4 (C.32:1-131), a payment in lieu of taxes shall be made with respect to real property owned by the port authority which is situated within the corporate boundaries of municipalities located in the State of New Jersey. The payment in lieu of taxes shall be in an amount equal to the municipal and school purpose tax rate of the respective municipality multiplied by the taxable value of the property prescribed by law pursuant to section 1 of P.L.1960, c.51 (C.54:4-2.25).
b. Each municipality wherein port authority property is located is authorized and empowered to collect the payments which the port authority is required to make pursuant to subsection a. of this section. The tax collector shall bill the port authority for the payment in lieu of taxes at the same time that property tax bills are sent. The payment in lieu of taxes shall be payable quarterly in equal installments at the same time that property tax bills are due. The sums so received shall be budgeted for the items to which municipal and school purpose taxes may be applied. Delinquent payments in lieu of taxes shall be considered delinquent taxes for the purposes of chapters 4 and 5 of Title 54 of the Revised Statutes.
c. Nothing in this supplementary act shall be construed as voiding any negotiated payment in lieu of taxes by the port authority which exceeds the amount otherwise due pursuant to subsection b. of this section, or to prohibit any such negotiated payment.
2. This act shall take effect upon the enactment into law by the state of New York of legislation having an identical effect with this act, but if the state of New York has already enacted such legislation this act shall take effect immediately.
This bill requires payments in lieu of taxes for real property located in New Jersey which is owned by the Port Authority of New York and New Jersey (“port authority”) and which is tax exempt.
Specifically, real property owned by the port authority which is situated within the corporate boundaries of any New Jersey municipality would be subject to a payment equal to the amount of municipal and school purpose taxes that would be due on the property if it were not tax exempt. The bill contains language "holding harmless" any present or future payments in lieu of taxes by the authority that are negotiated at amounts exceeding the amount due under the bill.
This supplement to the law would take effect upon enactment of a statute of identical effect in the state of New York.