ASSEMBLY, No. 1483
STATE OF NEW JERSEY
INTRODUCED FEBRUARY 5, 1996
By Assemblymen LeFEVRE, BLEE, Gibson and Asselta
An Act providing for payments in lieu of property taxes and payments in lieu of full property taxes on certain property in certain municipalities in the Pinelands area and supplementing 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:
"Effective municipal purposes tax rate" means the rate, per $100 of valuation, derived by dividing the amount to be raised for local municipal purposes for a municipality by the net valuation on which county taxes are apportioned to the municipality, as reported in column 12c and column 11, respectively, of the Abstract of Ratables and Exemptions compiled for the municipality by the Division of Taxation, in the Department of the Treasury, from the Table of Aggregates prepared pursuant to R.S.54:4-52;
"Pinelands area" means the area so designated pursuant to subsection a. of section 10 of P.L.1979, c.111 (C.13:18A-11);
"Pretax year" means the calendar year immediately preceding the tax year;
"Publicly owned property" means property which is owned by the United States, the State, or any county, except that "publicly owned property" shall not include property qualified for payments in lieu of taxes pursuant to P.L.1977, c.222 (C.54:4-2a et seq.);
"Qualified municipality" means a municipality located in the Pinelands area in which more than 30% of the property which is otherwise taxable is publicly owned property, and in which more than 60% of the property which is otherwise taxable is comprised of publicly owned property and property subject to taxation pursuant to P.L.1964, c.48 (C.54:4-23.1 et seq.), and which is certified by the director of the Division of Taxation pursuant to subsection a. of section 3 of P.L. , c. (C. )(now before the Legislature as this bill);
"Qualified municipal property" means property in a qualified municipality which is (1) owned by the State and not qualified for payments in lieu of taxes pursuant to P.L.1977, c.222 (C.54:4-2.2a et seq.); or (2) subject to assessment and taxation pursuant to P.L.1964, c.48 (C.54:4-23.1 et seq.); and
"Tax year" means the calendar year for which property taxes are due and payable pursuant to chapter 4 of Title 54 of the Revised Statutes.
2. Notwithstanding the provisions of any law, rule, or regulation to the contrary, qualified municipal property shall be assessed and subject to an annual payment in lieu of property taxes, or in lieu of full property taxes, as the case may be, pursuant to section 3 of this act.
3. a. Commencing with the first tax year for which the provisions of this act are applicable, a tax assessor of a municipality may apply to the Director of the Division of Taxation in the Department of the Treasury for certification of the municipality as a qualified municipality. The director's certification or denial of certification shall be issued within 60 days of receipt of an application for certification, and shall be considered the final agency act thereon for the purposes of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), and shall be subject only to judicial review as provided in the Rules of the Court.
b. Upon receipt of certification pursuant to subsection a. of this section, the municipal tax assessor for the qualified municipality that constitutes the taxing district in which qualified municipal property is located shall determine the taxable value of the qualified municipal property pursuant to subsection c. or d. of this section, as appropriate. The taxable value shall be forwarded to the Director of the Division of Taxation, in the Department of the Treasury, who shall calculate the amount of the payment in lieu of taxes, or in lieu of full property taxes, as the case may be, for the qualified municipality by multiplying the taxable value of qualified municipal property in that municipality by the effective municipal purposes tax rate for that municipality for the pretax year. In the case of property subject to assessment and taxation pursuant to P.L.1964, c.48 (C.54:4-23.1 et seq.), that amount of the payment shall be reduced by the amount of taxes paid pursuant thereto during the pretax year. Such amount shall be certified to the State Treasurer, and shall be in addition to any payment due each qualified municipality pursuant to P.L.1977, c.272 (C.54:4-2.2a. et seq.).
c. For qualified municipal property which is owned by the State, the tax assessor shall determine the taxable valuation of that property for the pretax year pursuant to R.S.54:4-2.
d. For qualified municipal property which is subject to local property taxation pursuant to P.L.1964, c.48 (C.54:4-23.1 et seq.), the tax assessor shall determine the taxable valuation of that property for the pre-tax year pursuant R.S.54:4-27 and without regard to the provisions of P.L.1964, c.48.
e. The amounts due and payable pursuant to this section shall be paid by the State Treasurer at the same time and in the same manner as provided in section 9 of P.L.1977, c.272 (C.54:4-2.2i).
4. This act shall take effect 60 days following enactment, and shall apply to each tax year beginning on and after that effective date.
STATEMENT
This bill would provide for State payment in lieu of property taxes and in lieu of full property taxes to certain municipalities located in the Pinelands area for State-owned property and for property subject to farmland assessment. The payments in lieu of property taxes would be made only to municipalities in the Pinelands area in which (1) more than 30% of the property which would otherwise be subject to local property taxation is owned by the United States, the State or a county, and (2) the aggregate of the property owned by the United States, the State or a county, and the property subject to farmland assessment comprises more than 60% of the property otherwise subject to taxation. In determining the 30% threshold, State property already qualified for State payments in lieu of taxes pursuant to P.L.1977, c.222 (C.54:4-2.2a et seq.) could not be considered. Municipalities in the Pinelands area which meet the eligibility requirements would be eligible for payments in lieu of property taxes for State property, and, in the case of property subject to farmland assessment, the State would be required to make payments in lieu of taxes reduced by the amount of taxes paid by the owner pursuant to the farmland assessment program.
Provides for payments in lieu of property taxes for certain municipalities in the Pinelands area.