CHAPTER 82

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:

Exemption of property used for military purposes.

    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.

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

Exemption of property of veterans' associations; limitation.

    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.

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

    Approved July 25, 1996.