§3 - Note to §§ 1,2

 

 

 

P.L. 1996, CHAPTER 82, approved July 25, 1996

Assembly No. 1576

 

 

 

An Act concerning exemption from taxation of veterans organizations and amending R.S.54:4-3.5 and R.S.54:4-3.25.

 

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

 

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

    54:4-3.5. 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 or for charitable 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. No property shall lose its exemption or be denied an exemption from taxation under this section because of the use of the property for an income-producing activity that is not the organization's primary purpose so long as all net proceeds from that activity are utilized in furtherance of the primary purpose of the organization or for other charitable purposes.

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

 

    2. R.S.54:4-3.25 is amended to read as follows:

    54:4-3.25. All real and personal property used in the work, for the support and for the purposes of one or more bona fide national war veterans organizations or posts, or bona fide affiliated associations, whether incorporated or unincorporated, existing and established on June eighteenth, one thousand nine hundred and thirty-six, 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, or posts, or affiliated associations. No property shall lose its exemption or be denied an exemption from taxation under this section because of the use of the property for an income-producing activity that is not the organization's primary purpose so long as all net proceeds from that activity are utilized in furtherance of the primary purpose of the organization or for other charitable purposes.

(cf: R.S.54:4-3.25)

 

    3. This act shall take effect immediately and shall be retroactive to January 1, 1994.

 

 

STATEMENT

 

    This bill permits war veterans' organizations to conduct certain auxiliary income-producing activities and retain property tax exempt status.

    Veterans' organizations, in addition to using their halls for veterans' meetings and affairs, also rent their facilities to members of the public for affairs. The money raised from rentals to non-organization members is often donated by the organization to local charitable and civic causes. Some veterans' organizations have been denied property tax exempt status by the courts because the catering activities for non-members in the facility were found to exceed the legally authorized property tax exempt use.

    This bill is designed to preserve the tax exempt status of veterans' organizations, even if these entities use their property for an income-producing purpose on an auxiliary basis, if all net proceeds from such auxiliary activities are utilized in furtherance of the purpose of the organization or for other charitable purposes.

 

 

 

Permits war veterans' organizations to conduct certain income-producing activities and retain property tax exempt status.