Bill Text: NJ ACR95 | 2024-2025 | Regular Session | Introduced

New Jersey Assembly Concurrent Resolution 95

Introduced

Bill Title: Proposes constitutional amendment to allow lower property tax rate on improvements than on land.

Spectrum: Bipartisan Bill

Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly State and Local Government Committee [ACR95 Detail]

Download: New_Jersey-2024-ACR95-Introduced.html

ASSEMBLY CONCURRENT RESOLUTION No. 95

STATE OF NEW JERSEY

221st LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION

Sponsored by:

Assemblyman ANTWAN L. MCCLELLAN

District 1 (Atlantic, Cape May and Cumberland)

Assemblywoman SHAVONDA E. SUMTER

District 35 (Bergen and Passaic)

SYNOPSIS

Proposes constitutional amendment to allow lower property tax rate on improvements than on land.

CURRENT VERSION OF TEXT

Introduced Pending Technical Review by Legislative Counsel.

A Concurrent Resolution proposing to amend Article VIII, Section I of the New Jersey Constitution by adding a new paragraph.

Be It Resolved by the General Assembly of the State of New Jersey (Senate the concurring):

1. The following proposed amendment to the Constitution of the State of New Jersey is agreed to:

PROPOSED AMENDMENT

Amend Article VIII, Section I by adding a new paragraph 8 to read as follows:

8. The Legislature shall enact general laws to permit a municipality to adopt an ordinance providing for a property tax system under which taxable improvements are taxed at a lower rate than taxable land. The general laws enacted to implement this paragraph may limit the municipalities permitted to adopt an ordinance under this paragraph to those municipalities in need of infrastructure investment, according to standards established by the Legislature. The general laws enacted to implement this paragraph shall:

(a) permit a municipality certain discretion in determining an appropriate difference between the rate on taxable land and the lower rate on taxable improvements;

(b) permit an ordinance adopted pursuant to a law enacted under this paragraph to phase in the adjusted tax rates over a period of years; and

(c) establish a method to permit a municipality that adopts an ordinance, authorized pursuant to this paragraph, to return to a single-rate property tax system.

2. When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.

3. This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

There shall be printed on each official ballot to be used at the general election, the following:

a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question as follows:

If you favor the proposition printed below make a cross (X), plus (+), or check (a) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the word "No."

b. In every municipality the following question:

		CONSTITUTIONAL AMENDMENT TO PERMIT PROPERTY TAXATION OF IMPROVEMENTS AT LOWER TAX RATE THAN LAND
	YES	Do you approve amending the Constitution to allow a lower property tax rate on improvements than on land? The Legislature may create standards for certain municipalities to use dual tax rates.
		INTERPRETIVE STATEMENT
	NO	Currently, a single property tax rate is applied to land and improvements. Improvements consist of buildings and other man-made conditions. This amendment requires the Legislature to allow municipalities to tax improvements at a lower rate than land. The tax rates would be set by local ordinance. The Legislature may limit participation to certain groups of municipalities. Municipalities allowed to use dual tax rates may phase in tax rate changes, and may return to the single-rate system.

STATEMENT

This resolution proposes a constitutional amendment requiring the Legislature to allow certain municipalities to tax improvements at a lower rate than land. An improvement refers to a building or other man-made condition. Property taxes in New Jersey are collected by municipalities, and are used to fund county, school, municipal, and other local needs.

Currently, municipalities are required to apply a single value-based tax rate to both land and improvements. This constitutional amendment directs the Legislature to enact general laws allowing municipalities to adopt ordinances under which improvements are taxed at a lower rate than land. The Legislature may allow all municipalities to participate, or limit participation to municipalities in need of infrastructure investment, according to standards established by the Legislature.

The implementing legislation will permit participating municipalities to phase-in the changes over a period of years. The implementing legislation will also establish a method permitting a municipality to return to a single property tax rate system.