SENATE STATE GOVERNMENT COMMITTEE

STATEMENT TO

SENATE, No. 415

with committee amendments

STATE OF NEW JERSEY

DATED: NOVEMBER 18, 1996

      The Senate State Government Committee reports favorably and with committee amendments Senate, No. 415.

      This bill requires a State authority to make payments in lieu of property taxes for any State-owned property acquired by the authority on or after January 1, 1991. Its purpose is to ensure that a municipality which receives payments in lieu of taxes for State-owned property within its borders continues to receive such payments when a State authority acquires title to the property.

      The acquisition of such property by a State authority reduces the total amount of "in lieu" payments made to the municipality by the State and the property becomes tax-exempt under the ownership of the authority. In general, the State does not make in lieu of tax payments for property owned by an authority, except for State Building Authority buildings in Trenton.

      The payments provided for in the bill would be calculated in the same manner as the State "in lieu" payments with amounts due paid directly by the authority to the appropriate municipal tax collector.

       The bill also provides that it shall not be construed as affecting any agreement between a State authority and a municipality (entered into before or after the bill's effective date) for payments in lieu of property taxes in amounts greater than would be required under the bill's provisions.

      The bill would take effect 60 days after enactment and apply to tax years which begin on or after that effective date.

COMMITTEE AMENDMENTS

      The committee amended the bill to exclude toll roads and property used in association with toll roads from the bill's provisions.