SENATE STATE GOVERNMENT COMMITTEE
STATEMENT TO
SENATE, No. 416
with committee amendments
STATE OF NEW JERSEY
DATED: NOVEMBER 18, 1996
The Senate State Government Committee reports favorably and with committee amendments Senate, No. 416.
This bill requires a State authority to make payments in lieu of property taxes for State-owned property acquired by the authority on or after January 1, 1991 or for other authority property which is exempt from State and local taxes, for each local tax year beginning on or after the effective date of the bill, unless: (1) the authority's bondholder agreements in currently outstanding and unpaid bonds or notes prohibit such payments; or (2) the authority is subject to agreements which require payments in lieu of taxes exceeding the amount which would otherwise be due under the bill.
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.
In addition, under the bill's provisions any new or refunded bonds of a State authority shall be null and void if the bondholder agreements prohibit payments in lieu of property taxes to municipalities in which qualified authority property is located.
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.