SENATE, No. 718

 

STATE OF NEW JERSEY

 

INTRODUCED FEBRUARY 15, 1996

 

 

By Senator LESNIAK

 

 

An Act concerning payments in lieu of taxation for certain Port Authority of New York and New Jersey property and supplementing Title 32 of the Revised Statutes.

 

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

 

    1. a. Notwithstanding any law, rule or regulation to the contrary, a payment in lieu of taxes shall be made with respect to real property owned by the port authority which is situated within the corporate boundaries of municipalities located in the State of New Jersey. The payment in lieu of taxes shall be in an amount equal to the municipal purposes tax rate of the respective municipality multiplied by the taxable value of the property prescribed by law pursuant to section 1 of P.L.1960, c.51 (C.54:4-2.25).

    b. Each impacted municipality is hereby authorized and empowered to collect the payments which the port authority is hereby required to make. The tax collector shall bill the port authority for the payment in lieu of taxes at the same time that property tax bills are sent. The payment in lieu of taxes shall be payable quarterly in equal installments at the same time that property tax bills are due. The sums so received shall be budgeted for the items to which municipal purposes taxes may be applied. Delinquent payments in lieu of taxes shall be considered delinquent taxes for the purposes of chapters 4 and 5 of Title 54 of the Revised Statutes.

    c. Nothing in this 1996 supplementary act shall be construed as voiding any negotiated payment in lieu of taxes by the port authority which exceeds the amount otherwise due pursuant to subsection b. of this section, or to prohibit any such negotiated payment.

 

    2. This act shall take effect upon the enactment into law by the state of New York of legislation having an identical effect with this act, but if the state of New York has already enacted such legislation this act shall take effect immediately.


STATEMENT

 

    This bill requires payments in lieu of taxes for real property located in New Jersey which is owned by the Port Authority of New York and New Jersey and which is tax exempt.

    Specifically, real property owned by the Port Authority of New York and New Jersey which is situated within the corporate boundaries of any New Jersey municipality would be subject to a payment equal to the amount of municipal purposes taxes that would be due on the property if it were not tax exempt. The bill contains language "holding harmless" any present or future payments in lieu of taxes by the authority that are negotiated at amounts exceeding the amount due under the bill.

    This supplement to the law would take effect upon enactment of a statute of identical effect in the State of New York.

 

 

                             

Commences PILOT for tax exempt real property owned by Port Authority of New York and New Jersey.