ASSEMBLY CONCURRENT RESOLUTION No. 57
STATE OF NEW JERSEY
INTRODUCED FEBRUARY 5, 1996
By Assemblymen PASCRELL, BAGGER and Gregg
A Concurrent Resolution requesting that the Supreme Court of the State of New Jersey certify an appeal in General Motors Corp. v. City of Linden for hearing before it on its own motion, and ensure that a judgement is rendered with due speed.
Whereas, The Legislature has found and does find that New Jersey's manufacturing sector is an important source of relatively high-paying employment for a large portion of the work force and is an essential foundation for the rest of the economy, serving as a larger multiplier of jobs in the economy than any other sector; and
Whereas, New Jersey is in competition with other states as a location for industrial and manufacturing facilities, and the New Jersey Legislature has acted to create a fiscal climate attractive to industry through a policy of excluding business personal property from taxation; and
Whereas, The key to the fair implementation of this policy has been the balancing of the preservation of the municipal real property tax base with the exclusion of business personal property from local taxation; and
Whereas, The most recent attempt of the Legislature to strike this balance, the "Business Retention Act," P.L.1992, c.24, involved an extensive process of testimony before committees, discussion among various municipal and business groups, and the participation of the Legislative and Executive branches; and
Whereas, The Tax Court, in the case of General Motors Corp. v. City of Linden, has found that a critical provision of the "Business Retention Act," subsection b. of R.S.54:4-1, is in violation of the New Jersey Constitution; and
Whereas, Until this issue is ultimately determined by the Supreme Court of the State of New Jersey an uncertainty as to the taxable status of business personal property, such as machinery and equipment, will have a negative impact on development of New Jersey's manufacturing sector; and
Whereas, The Legislature, local governments and the business community are in need of guidance as to whether the Tax Court's holding in this decision is correct and as to how they may proceed as the potential for further legislation is contemplated; and
Whereas, It is feared that, without speedy, clear and final resolution of General Motors Corp. v. City of Linden, New Jersey's chances for increased business development and retention could be adversely affected; and
Whereas, The Supreme Court of the State of New Jersey has the sole authority to govern the administration of the courts of the State and their practice and procedures; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):
1. That the Supreme Court of the State of New Jersey is respectfully requested to exercise its authority under Rule 2:12-1 of the Rules Governing the Courts of the State of New Jersey and immediately certify on its own motion the case in General Motors Corp. v. City of Linden for appeal before it and to take all appropriate steps to ensure that arguments are heard and judgements are rendered with due speed in the appeals relating to the decision in the case of General Motors Corp. v. City of Linden.
2. That duly authenticated copies of this concurrent resolution, signed by the President of the Senate and the Speaker of the General Assembly, be transmitted to the Chief Justice and the Associate Justices of the Supreme Court of the State of New Jersey.
STATEMENT
This Assembly Concurrent Resolution respectfully requests the Supreme Court of the State of New Jersey to exercise its authority under Rule 2:12-1 of the Rules Governing the Courts of the State of New Jersey and immediately certify, on its own motion, the case in General Motors Corp. v. City of Linden for appeal before it and take all appropriate steps to ensure that appeals are heard and judgements are rendered with due speed in the appeals relating to the decision in the case of General Motors Corp. v. City of Linden.
Since 1966, New Jersey has excluded most business personal property, like inventory, business equipment and business production machinery, from local assessment and taxation. This has been a part of the State's economic development effort to encourage the location of industrial and manufacturing facilities in New Jersey, and has in part been a response to similar exclusions in Pennsylvania and New York, among other states.
The key to the fair implementation of this policy has been the balancing of a reasonable municipal real property tax base against the exclusion of business personal property from that tax base. This has led to a series of court decisions and legislative initiatives and responses concerning what business property is sufficiently incorporated into land and buildings to be locally taxable as real property. The dividing line has moved back and forth on this issue.
A series of Tax Court decisions in the early 1980's, based on the New Jersey Supreme Court's 1979 decision as to the proper rule for drawing the line, was believed by some to exclude petroleum storage tanks and refineries, which had been taxable locally as real property and the Legislature enacted laws clarifying that rule to continue the taxation of petroleum storage tanks and refineries locally while also continuing the exclusion of all other business personal property from taxation. When this rule was interpreted and applied in the early 1990's, however, some felt that too much property was included in the local taxation base. The Legislature responded, after intense discussion among Legislative committees, representatives of local governments, municipal and business groups, and representatives of the Executive branch, by enacting the "Business Retention Act," P.L.1992, c.24, to further refine the definitions of what is and is not taxable by local governments.
A recent opinion of the New Jersey Tax Court in General Motors Corp. v. City of Linden has, however, found that the critical provision of the "Business Retention Act" is contrary to the New Jersey Constitution's "Uniformity Clause." Quick resolution of the case will assist the Legislature in understanding what statutory changes it can make, if the Tax Court's decision is upheld, without offending the provisions of the State Constitution as it considers the potential for further statutory action.
To this end, the resolution requests the Supreme Court of the State of New Jersey, which has sole jurisdiction over the courts of the State, to exercise its authority under Rule 2:12-1 of the Rules Governing the Courts of the State of New Jersey and immediately certify, on its own motion, the case in General Motors Corp. v. City of Linden for appeal before it and take all appropriate steps to ensure that appeals are heard and judgements are rendered with due speed in the appeals relating to the decision in the case of General Motors Corp. v. City of Linden.
Requests the State Supreme Court to certify an appeal in General Motors Corp. v. City of Linden for hearing before it on its own motion and ensure a speedy judgement.