SENATE, No. 388

 

STATE OF NEW JERSEY

 

INTRODUCED JANUARY 18, 1996

 

 

By Senator ADLER

 

 

An Act requiring the annual appropriation of State aid for municipalities for payments in lieu of property tax for newly acquired State property.

 

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

 

    1. The Governor shall include in the annual budget message a sum sufficient to pay the estimated amount required to pay State aid to municipalities for the impact upon local government costs of local services to newly owned State property acquired during the prior fiscal year. That amount shall be added to the amount of State aid requested pursuant to section 7 of P.L.1977, c.272 (C.54:4-2.2g), for State property owned previous to the prior State fiscal year for the State's ordinary liability for in lieu tax payments, or shall be added to the amount of State aid requested for Consolidated Municipal Property Tax Relief Aid in which in the State's ordinary liability for in lieu tax payments has been consolidated. The annual appropriations act shall include the appropriation of this sum for distribution to affected municipalities.

 

    2. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill requires the annual appropriation of State aid payments to municipalities for the impact upon local government costs of local services to newly owned State property acquired during the prior fiscal year. The ordinary State aid appropriation for payment in lieu of property taxes for State owned property (PILOT), now consolidated in the Consolidated Municipal Property Tax Relief Aid program, may not include newly acquired State property. Newly acquired State property comes off the local property tax roles but often is not yet included in the list of State property subject to review by the Director of the Division of Taxation in the Department of Taxation as part of the regular PILOT program. Acquisition of new State property may thus have the consequence of effectively increasing the tax burden for the remaining property taxpayers in local communities where the State acquires currently taxable property. This State aid program for PILOT payments for newly acquired State property addresses this State-imposed local tax burden.

 

 

                             

Requires annual appropriation of PILOT payments for newly acquired State property.