SENATE, No. 810

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 22, 1996

By Senator RICE

An Act concerning State property subject to taxation, amending R.S.54:4-3.3 and repealing P.L.1977, c.272.

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

    1. R.S.54:4-3.3 is amended to read as follows:

    54:4-3.3 a. Except as otherwise provided by article 1 of this chapter ([£]R.S.54:4-1 et seq.), [the property of the State of New Jersey; and] the property of the respective counties, school districts and taxing districts used for public purposes, or for the preservation or exhibit of historical data, records or property; school district property which is leased to a nonprofit organization which is exempt from taxation under R.S.54:4-3.6, for use by that organization in its exempt functions; school district property which is leased to another board of education or governmental agency; and property acquired by any municipality through tax title foreclosure or by deed in lieu of foreclosure, if not used for private purpose, shall be exempt from taxation under this chapter, but this exemption shall not include real property bought in for debts or on foreclosure of mortgages given to secure loans out of public funds or out of money in court, which property shall be taxed unless devoted to public use. The lands of counties, municipalities, and other municipal and public agencies of this State used for the purpose and for the protection of a public water supply shall be subject to taxation by the respective taxing districts where situated, at the taxable value thereof, without regard to any buildings or other improvements thereon, in the same manner and to the same extent as the lands of private persons, but all other property so used shall be exempt from taxation. Property, the title to which is in the Morris Canal and Banking Company, in trust for the State, shall, so long as the title is so vested, be deemed to be the property of the State within the meaning of any tax law.

    b. State property used or held for future use for highway, bridge or tunnel purposes, and property which is qualified under State law for any State payment in lieu of taxes is exempt from taxation.

(cf: P.L.1983, c.262, s.1)

    2. Sections 1 through 11 of P.L.1977, c.272 (C.54:4-2.2a et seq.) are repealed.

    3. This act shall take effect immediately, and shall be applicable to assessments and taxes for the tax year beginning January 1, next following enactment.

STATEMENT

    This bill authorizes municipalities to tax for real property taxation State owned property, except State property used or held for future use for highway, bridge or tunnel purposes or property which is qualified under State law for any State payment in lieu of taxes, at the general tax rate of the municipality. The bill repeals P.L.1977, c.272 (C.54:4-2.2a et seq.) which requires the State to make payments to municipalities in lieu of taxes.