A307

ASSEMBLY, No. 307

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblyman BODINE

An Act concerning certain tax exempt property and amending various sections of statutory law.

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

1. This act shall be known and may be referred to as the "Host Community Fair Share Act."

2. Section 1 of P.L.1951, c.135 (C.54:4-4.4) is amended to read as follows:

1. a. Every municipal tax assessor shall, on or before October 1, 1951, obtain from each owner of real property in his taxing district, for which a tax exemption is claimed, an initial statement under oath in such form as shall be prescribed by the Director of the Division of Taxation, showing the right to the exemption claimed. Thereafter, and on or before November 1 of each year, subject to the provisions of subsection b. of this section, said assessor shall obtain an initial statement from each owner of real estate in his taxing district, including but not limited to an owner that is a governmental entity such as the State, a county, a municipality, a school district, or any agency, authority or instrumentality thereof, if one has not theretofore been filed. When an initial statement has theretofore been filed, then not later than November 1, 1954, and thereafter not later than November 1 of every third succeeding year, said assessor shall obtain a further statement under oath from each owner of real property for which tax exemption is claimed, provided, however, that nothing herein contained shall require a further statement to be filed in the same year in which an initial statement shall have been filed, but that the further statement shall thereafter be filed at the time and in the years hereinabove required for the filing of further statements. Each assessor may at any time inquire into the right of a claimant to the continuance of an exemption hereunder and for that purpose he may require the filing of a further statement or the submission of such proof as he shall deem necessary to determine the right of the claimant to continuance of the exemption. Such further statement shall be in such form as shall be prescribed by the director and shall set forth

[(a)](1) Whether there has been any change of use of any of such property initially determined as being entitled to exemption during any three-year period as aforesaid which would defeat the right of exemption therein, and

[(b)](2) Whether any new or additional property has been acquired for which a tax exemption is claimed and showing initially as to such new or additional property, the right to the exemption claimed.

The municipal tax assessor shall obtain the aforesaid statements in duplicate from the property owner, and the assessor shall file the duplicate copy thereof with the county board of taxation with his list of property exempt from taxation, on or before January 10 following.

The provisions of this section shall not apply to any claim for tax exemption under Article VIII, Section I, paragraph 3, of the Constitution, or under any law enacted pursuant thereto, for the benefit of veterans, disabled veterans and the surviving spouses of those citizens and residents of this State who have met or may hereafter meet their deaths while on active duty in time of war in any branch of the Armed Forces of the United States, or to any claim for tax exemption for property that is used exclusively for religious worship purposes.

b. (1) The tax assessor shall not obtain or accept for filing an initial statement supporting a claim for an exemption from property taxation from a claimant for the current tax year when the municipality is listed as 10% or greater in the "municipal tax exempt percentage records," prepared by the county board of taxation pursuant to subsection b. of R.S.54:4-27 unless the application is approved by the municipal governing body after notice to the claimant and opportunity to be heard. This paragraph shall not be applicable to claims for additional exemptions for improvements or additions on property that is currently listed by the assessor as tax exempt.

(2) The municipal governing body shall approve a claim for tax exempt status only if either the claimant demonstrates that the benefit to the local community outweighs the burden of the tax exempt property on the local taxpayers, or the municipal governing body enters into an agreement for payments in lieu of taxes with the claimant reasonably calculated to reimburse the municipality for the cost of maintaining public safety services available to the property.

(cf: P.L.1985, c.515, s.5)

3. Section 2 of P.L.1971, c.370 (C.54:4-3.3b) is amended to read as follows:

2. [Where] Except as provided in subsection b. of P.L.1951, c.135 (C.54:4-4.4), when real property is acquired by the State or by a State agency, or by an authority created by the State, by purchase, condemnation or otherwise, such property shall become tax exempt on January 1 of the calendar year next following the date of acquisition, provided that the tax assessor of the municipality in which such property is located is given written notice of the acquisition by certified mail on or before January 10 of said calendar year next following; provided further that if real property is acquired between January 1 and January 10 inclusive and the prescribed notice is given on or before January 10, such real property shall become tax exempt as of the date of acquisition.

(cf: P.L.1971, c.370, s.2)

4. R.S.54:4-3.4 is amended to read as follows:

54:4-3.4. [All] Except as provided in subsection b. of P.L.1951, c.135 (C.54:4-4.4), all real and personal property acquired by the Passaic valley sewerage commissioners, under the authority of chapter 14 of the title Waters and Water Supply (R.S.58:14-1 et seq.) for use as part of or in connection with a main intercepting or trunk sewer, its branches or appurtenances, contracted by the Passaic valley sewerage commissioners to be constructed for two or more of the municipalities lying within the Passaic valley sewerage district, shall be exempt from all taxes levied by the municipality or taxing district in which such property is located.

(cf: R.S.54:4-3.4)

5. R.S.54:4-3.5 is amended to read as follows:

54:4-3.5. [Real] Except as provided in subsection b. of P.L.1951, c.135 (C.54:4-4.4), real estate or personal property owned and used for military purposes by any organization under the jurisdiction of this State, shall be exempt from taxation under this chapter on condition that all income derived from the property above the expense of its maintenance and repair shall be used exclusively for such military purposes; and any building, real estate or personal property used by an organization composed entirely of veterans of any war of the United States shall be exempt from taxation under this chapter.

(cf: P.L.1944, c.24, s.2)

6. R.S.54:4-3.6 is amended to read as follows:

54:4-3.6. [The] Except as provided in subsection b. of P.L.1951, c.135 (C.54:4-4.4), the following property shall be exempt from taxation under this chapter: all buildings actually used for colleges, schools, academies or seminaries, provided that if any portion of such buildings are leased to profit-making organizations or otherwise used for purposes which are not themselves exempt from taxation, said portion shall be subject to taxation and the remaining portion only shall be exempt; all buildings actually used for historical societies, associations or exhibitions, when owned by the State, county or any political subdivision thereof or when located on land owned by an educational institution which derives its primary support from State revenue; all buildings actually and exclusively used for public libraries, religious worship or asylum or schools for feebleminded or idiotic persons and children; all buildings used exclusively by any association or corporation formed for the purpose and actually engaged in the work of preventing cruelty to animals; all buildings actually and exclusively used and owned by volunteer first-aid squads, which squads are or shall be incorporated as associations not for pecuniary profit; all buildings actually used in the work of associations and corporations organized exclusively for the moral and mental improvement of men, women and children, provided that if any portion of a building used for that purpose is leased to profit-making organizations or is otherwise used for purposes which are not themselves exempt from taxation, that portion shall be subject to taxation and the remaining portion only shall be exempt; all buildings actually and exclusively used in the work of associations and corporations organized exclusively for religious or charitable purposes; all buildings actually used in the work of associations and corporations organized exclusively for hospital purposes, provided that if any portion of a building used for hospital purposes is leased to profit-making organizations or otherwise used for purposes which are not themselves exempt from taxation, that portion shall be subject to taxation and the remaining portion only shall be exempt; all buildings owned or held by an association or corporation created for the purpose of holding the title to such buildings as are actually and exclusively used in the work of two or more associations or corporations organized exclusively for the moral and mental improvement of men, women and children; all buildings owned by a corporation created under or otherwise subject to the provisions of Title 15 of the Revised Statutes or Title 15A of the New Jersey Statutes and actually and exclusively used in the work of one or more associations or corporations organized exclusively for charitable or religious purposes, which associations or corporations may or may not pay rent for the use of the premises or the portions of the premises used by them; the buildings, not exceeding two, actually occupied as a parsonage by the officiating clergymen of any religious corporation of this State, together with the accessory buildings located on the same premises; the land whereon any of the buildings hereinbefore mentioned are erected, and which may be necessary for the fair enjoyment thereof, and which is devoted to the purposes above mentioned and to no other purpose and does not exceed five acres in extent; the furniture and personal property in said buildings if used in and devoted to the purposes above mentioned; all property owned and used by any nonprofit corporation in connection with its curriculum, work, care, treatment and study of feebleminded, mentally retarded, or idiotic men, women, or children shall also be exempt from taxation, provided that such corporation conducts and maintains research or professional training facilities for the care and training of feebleminded, mentally retarded, or idiotic men, women, or children; provided, in case of all the foregoing, the buildings, or the lands on which they stand, or the associations, corporations or institutions using and occupying them as aforesaid, are not conducted for profit, except that the exemption of the buildings and lands used for charitable, benevolent or religious purposes shall extend to cases where the charitable, benevolent or religious work therein carried on is supported partly by fees and charges received from or on behalf of beneficiaries using or occupying the buildings; provided the building is wholly controlled by and the entire income therefrom is used for said charitable, benevolent or religious purposes. The foregoing exemption shall apply only where the association, corporation or institution claiming the exemption owns the property in question and is incorporated or organized under the laws of this State and authorized to carry out the purposes on account of which the exemption is claimed or where an educational institution, as provided herein, has leased said property to a historical society or association or to a corporation organized for such purposes and created under or otherwise subject to the provisions of Title 15 of the Revised Statutes or Title 15A of the New Jersey Statutes.

As used in this section "hospital purposes" includes health care facilities for the elderly, such as nursing homes; residential health care facilities; assisted living residences; facilities with a Class C license pursuant to P.L.1979, c.496 (C.55:13B-1 et al.), the "Rooming and Boarding House Act of 1979"; similar facilities that provide medical, nursing or personal care services to their residents; and that portion of the central administrative or service facility of a continuing care retirement community that is reasonably allocable as a health care facility for the elderly.

(cf: P.L.1993, c.166, s.1)

7. Section 1 of P.L.1967, c.24 (C.54:4-3.6a) is amended to read as follows:

1. In addition to the exemptions from taxation authorized by Revised Statutes 54:4-3.6 and except as provided in subsection b. of P.L.1951, c.135 (C.54:4-4.4), the following property shall be exempt from taxation under the chapter to which this act is a supplement:

All buildings and structures located in this State and used exclusively by a nonprofit association or corporation organized under the laws of this or another state for the production and broadcasting of educational television or educational radio programs; the land whereon the buildings and structures are erected and which may be necessary for the fair enjoyment thereof, and which is devoted to the foregoing purpose, and no other purpose, and does not exceed 30 acres in extent; the furniture, equipment and personal property in said buildings and structures if used and devoted to the foregoing purpose. The foregoing exemption shall apply only where the association or corporation owns the property in question and is authorized to carry out the purpose on account of which the exemption is claimed.

(cf: P.L.1979, c.50 s. 2)

8. Section 1 of P.L.1979, c.454 (C.54:4-3.6b) is amended to read as follows:

1. [Wherever] Except as provided in subsection b. of P.L.1951, c.135 (C.54:4-4.4), whenever an owner of real property, who has been granted an exemption from taxation pursuant to R.S.54:4-3.6 or R.S.54:4-3.26 shall make subsequent application for an exemption from taxation for property newly acquired by him, such application shall be deemed timely filed notwithstanding that the acquisition may have been made subsequent to October 1 of the pretax year, and the exemption shall be extended, provided:

a. The applicant and subject property meet all other requirements for exemption; and

b. The subject property was exempt from taxation under this article when acquired by the applicant.

(cf: P.L.1979, c.454, s.1)

9. R.S.54:4-3.24 is amended to read as follows:

54:4-3.24. [All] Except as provided in subsection b. of P.L.1951, c.135 (C.54:4-4.4), all real and personal property used for the purposes and in the work of 1 or more of the associations known as Young Men's Christian Associations, Young Women's Christian Associations, Young Men's and Young Women's Christian Associations, Young Men's Hebrew Associations, Young Women's Hebrew Associations or Young Men's and Young Women's Hebrew Associations or of the Boy Scouts of America or Girl Scouts of the United States of America in this State, whether incorporated or unincorporated, shall be exempt from taxation under this chapter if the legal or equitable ownership of such property is in 1 or more of said associations using said property and the land so exempt does not exceed 5 acres in extent or, in the case of improved land, the acreage limitation under section 54:4-3.6 of this Title. Any real property upon which construction of a building or other improvement has been begun for the purpose of putting the same to use for the work of such association shall be within the said exemption. The foregoing

exemption shall not apply to any property or part thereof used for the purposes of pecuniary profit.

(cf: P.L.1959, c.3, s.1)

10. R.S.54:4-3.26 is amended to read as follows:

54:4-3.26. [All] Except as provided in subsection b. of P.L.1951, c.135 (C.54:4-4.4), all real and personal property used in the work and for the purposes of one or more fraternal organizations or lodges, or any association or society organized on the lodge plan, or affiliated associations, whether incorporated or unincorporated, shall be exempt from taxation under this chapter, if the legal or beneficial ownership of such property is in one or more of said organizations, lodges, associations or societies, and no part of such property is used for pecuniary profit, provided that each such organization, lodge, association or society is also organized and operated in substantial part for charitable or educational purposes and demonstrates these aims in its programs and activities.

(cf: P.L.1971, c.320, s.1)

11. Section 1 of P.L.1971, c.339 (C.54:4-3.26a) is amended to read as follows:

1. [The] Except as provided in subsection b. of P.L.1951, c.135 (C.54:4-4.4), the exemption provided in the act to which this act is a supplement shall apply to the tax year 1972 and thereafter.

(cf: P.L.1971, c.339, s.1)

12. Section 3 of P.L.1962, c.87 (C.54:4-3.50) is amended to read as follows:

3. [Initial] Except as provided in subsection b. of P.L.1951, c.135 (C.54:4-4.4), initial application for a tax exemption under this act shall be filed by the taxpayer with the assessor of the taxing district on or before October 1 of the pretax year on a form to be prescribed by the Director of the Division of Taxation and supplied by the assessor. The application shall contain an authorization to the assessor, or his authorized representative, to enter upon the premises to make periodic inspection of the blast or radiation fallout shelter.

(cf: P.L.1962, c.87, s.3)

13. Section 3 of P.L.1967, c.260 (C.54:4-3.61) is amended to read as follows:

3. [Initial] Except as provided in subsection b. of P.L.1951, c.135 (C.54:4-4.4), initial application for a tax exemption pursuant to this section shall be filed by the taxpayer with the assessor of the taxing district on or before October 1 of the pretax year on a form to be prescribed by the Director of the Division of Taxation and supplied by the assessor. The application shall contain an authorization to the assessor, or to his authorized representative, to enter upon the premises to make periodic inspection of the improvement.

(cf: P.L.1967, c.260, s.3)

14. Section 2 of P.L.1974, c.167 (C.54:4-3.64) is amended to read as follows:

2. [All] Except as provided in subsection b. of P.L.1951, c.135 (C.54:4-4.4), all lands and the improvements thereon actually and exclusively used for conservation or recreation purposes, owned and maintained or operated for the benefit of the public by a nonprofit corporation or organization organized under the laws of this or any State of the United States authorized to carry out the purposes on account of which the exemption is claimed and which is qualified for exemption from Federal Income Tax under Section 501(c)(3) of the Internal Revenue Code shall be exempt from taxation; provided, however, that the Commissioner of the Department of Environmental Protection certifies that the real property and the property owner are qualified under the terms of this act.

(cf: P.L.1974, c.167, s.2)

15. Section 3 of P.L.1974, c.167 (C.54:4-3.65) is amended to read as follows:

3. [Each] Except as provided in subsection b. of P.L.1951, c.135 (C.54:4-4.4), each owner of real property claiming the tax exemption provided by this act shall file the original and one copy of its initial application for certification with the Commissioner of the Department of Environmental Protection on or before August 1 of the pretax year on such forms as the commissioner shall prescribe. Such application shall include, but not be limited to, the following information: the taxing district in which the real property is located, the block and lot number of the property, a physical description of the land and improvements, a plan for the use and preservation of the property, a statement of the uses which may be made of the property by the public, and a statement of the terms under which the public may gain access to and enjoy the use of such lands. The application shall be accompanied by documentation to establish the organization and purposes of the property owner and its entitlement to exemption from Federal income tax under Section 501(c)(3) of the Internal Revenue Code.

(cf: P.L.1974, c.167, s.3)

16. Section 4 of P.L.1974, c.167 (C.54:4-3.66) is amended to read as follows:

4. [The] Except as provided in subsection b. of P.L.1951, c.135 (C.54:4-4.4), the Commissioner of the Department of Environmental Protection may certify that the real property is maintained or operated for the benefit of the public only if he finds, after a public hearing on the application has been held, that the real property for which an application for tax exemption is made is open to all on an equal basis and that a tax exemption for such property would be in the public interest. Restrictions on the use of such real property by the public may be permitted if the commissioner finds that they are necessary for proper maintenance and improvement of the property or that significant natural features of the land may be adversely affected by unrestricted access. The commissioner may authorize that reasonable charges may be made for entrance onto or use of such real property. The commissioner may consult with the Natural Areas Council in making a determination as to whether the granting of a certificate for the real property covered by the application would serve the public interest.

(cf: P.L.1974, c.167, s.4)

17. Section 3 of P.L.1983, c.309 (C.54:4-3.132) is amended to read as follows:

3 [The] Except as provided in subsection b. of P.L.1951, c.135 (C.54:4-4.4), the enforcing agency shall grant a certification pursuant to section 2 of [this act] P.L.1983, c.309 (C.54:4-3.131) upon receipt of a written application made under oath on a form prescribed by the Director of the Division of Taxation in the Department of the Treasury. The form shall be made available to claimants by the enforcing agency. The enforcing agency may at any time inquire into the right of a claimant to the exemption and for that purpose may require the filing of a new application or the submission of any proof necessary to determine the right of the claimant to the continuation of the exemption. The 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] P.L.1983, c.309 (C.54:4-3.130 et seq.).

(cf: P.L.1983, c.309, s.3)

18. Section 9 of P.L.1985, c.401 (C.54:4-3.138) is amended to read as follows:

9. [A] Except as provided in subsection b. of P.L.1951, c.135 (C.54:4-4.4), a pet cemetery which is dedicated to pet cemetery purposes pursuant to the provisions of section 3 of [this act] P.L.1985, c.401 (C.4:22A-3) and which is organized as a nonprofit corporation pursuant to Title 15A of the New Jersey Statutes is exempt from taxation as real property under chapter 4 of Title 54 of the Revised Statutes, for as long as the dedication remains in effect. This exemption shall apply to land, disposal sites, structures, facilities and buildings which are the subjects of the dedication and are used for pet cemetery purposes.

(cf: P.L.1985, c.401, s.9)

19. R.S.54:4-27 is amended to read as follows:

54:4-27. a. The assessor shall enter in a separate list a description of all cemeteries, churches, public buildings and other real property exempt from taxation, and all exempt personal property, with the name of the owner, and shall value such land and buildings and personal property at the amount which would be the [taxable] current assessed value if the same were not exempt from taxation in the same manner as other real and personal property, and in each case he shall state the ground of exemption. The assessor shall also include on the list the acreage of the exempt real property.

b. The clerk of every county, at the expense of the county, shall record in an appropriate book in his office to be designated "municipal tax exempt percentage records," an annual listing, to be prepared by the county board of taxation, of the names of the municipalities in the county along with the ratio of the assessed valuation of the exempt properties in each such municipality to the total assessed valuation of all taxable and exempt properties situate within each such municipality for the previous tax year, expressed as a percentage with two decimal places.

(cf: P.L.1960, c.51, s.28)

20. This act shall take effect immediately but subsection b. of section 2 shall not become operative until January 1 of the year next following enactment.

STATEMENT

This bill prohibits a municipal tax assessor from accepting a claim for tax exempt status from a claimant who does not already have tax exempt status in any year that the municipality has 10% or more of the value of all property in the municipality listed as tax exempt for the previous year, unless the claim is approved by the municipal governing body after notice to the claimant and after opportunity to be heard. The restriction does not apply to property used solely for religious worship purposes. A municipal governing body could approve a claim for tax exemption either upon a showing that the benefit to the municipality of the tax exempt use of the property outweighs the burden on the other municipal property taxpayers of subsidizing the proposed tax exempt use or upon the claimant entering into an agreement with the municipality to make payments in lieu of tax reasonably calculated to reimburse the municipality for the cost of maintaining public safety services available to the property.

This bill also requires municipal tax assessors to report annually to the county tax board the current assessed value of property listed as tax exempt along with the acreage of that property. The county clerk is required to record in an appropriate book in the clerk’s office, to be designated "municipal tax exempt percentage records," an annual listing, prepared by the county board of taxation, of the names of the municipalities in the county along with the ratio of the assessed valuation of the exempt properties in the municipality to the total assessed valuation of all properties situate within the municipality for the previous tax year, expressed as a percentage, in order to give the public notice of those municipalities that have reached the 10% threshold.

"Host Community Fair Share Act."