Bill Text: NJ S2043 | 2012-2013 | Regular Session | Introduced
Bill Title: Subjects certain municipal and school property to property taxation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-05-31 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S2043 Detail]
Download: New_Jersey-2012-S2043-Introduced.html
Sponsored by:
Senator SHIRLEY K. TURNER
District 15 (Hunterdon and Mercer)
SYNOPSIS
Subjects certain municipal and school property to property taxation.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the taxation of certain public property and amending R.S.54:4-3.3.
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 (s. 54:4-1 et seq.)[,]:
(1) the property of the State of New Jersey [and] shall be exempt from taxation under this chapter;
(2) 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 shall be exempt from taxation under this chapter;
(3) the property of a school district that is located within the territorial boundaries of that school district and which is used for public purposes, or for the preservation or exhibit of historical data, records or property shall be exempt from taxation under this chapter;
(4) the property of a taxing district that is located within the territorial boundaries of the taxing district and which is used for public purposes, or for the preservation or exhibit of historical data, records or property shall be exempt from taxation under this chapter;
(5) school district property located within the territorial boundaries of the school district which property 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 shall be exempt from taxation under this chapter;
(6) school district property located within the territorial boundaries of the school district which property is leased to another board of education or governmental agency shall be exempt from taxation under this chapter; and
(7) property acquired by [any] a municipality through tax title foreclosure or by deed in lieu of foreclosure, if not used for private purpose and located within the territorial boundaries of the municipality, 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.
b. 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.
c. 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.
(cf: P.L.1983, c.262, s.1)
2. This act shall take effect immediately, however, with regard to property owned by a school district or taxing district on the effective date of this act, which property is located outside of the territorial boundaries of the district, this act shall take effect on the first day of the twelfth month next following enactment.
STATEMENT
This bill would eliminate the property tax exemption for municipal and school district property unless the property is located within the territorial boundaries of the municipality or school district. Under current law, all property of municipalities and school districts used for public purposes, other than watershed property, is exempt from taxation even if the property is located within another municipality. This exemption unfairly and unevenly impacts municipalities and encourages school districts and municipalities to purchase property in neighboring jurisdictions instead of their own thereby allowing for the possibility of greater property tax revenues within their own territorial boundaries.
