ASSEMBLY COMMERCE AND MILITARY AND VETERANS' AFFAIRS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 982

STATE OF NEW JERSEY

DATED: OCTOBER 7, 1996

      The Assembly Commerce and Military and Veterans' Affairs Committee reports favorably Assembly Bill No. 982.

      As reported, this bill provides for an amendment to the Delaware River Port Authority (DRPA) compact that would direct the DRPA to annually compensate municipalities in New Jersey which have facilities used by the Port Authority Transit Corporation (PATCO), a subsidiary of the DRPA. The DRPA would pay an amount annually, based on the assessed value of the facilities in each affected municipality and the effective municipal purposes tax rate of each municipality, to compensate each such municipality for the loss of tax revenue associated with the presence of PATCO facilities.

      Although the DRPA compact currently exempts property acquired for passenger transportation purposes from the payment of taxes, the DRPA is negotiating new lease arrangements for four PATCO facilities leased for $1 per year from the City of Philadelphia. This amendment would make New Jersey municipalities having PATCO facilities eligible to be treated in a financially equitable manner.

      The bill further provides that it shall take effect January 1 next following enactment, but that the Governor shall not enter into the supplemental compact on behalf of New Jersey until passage by the Commonwealth of Pennsylvania of substantially similar legislation.

      This bill was pre-filed for introduction in the 1996 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.