New Jersey-2018-S572-Introduced

An Act providing for payments for local services in lieu of taxation on cemetery property, supplementing chapter 4 of Title 54 of the Revised Statutes, and making an appropriation.

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

1. As used in this act:

"Director" means the Director of the Division of Taxation in the Department of the Treasury.

"Exempt cemetery property" means any land or place used or dedicated for use for burial of human remains, cremation of human remains, or disposition of cremated human remains.

"Local purpose tax levy" means the total levy on which the tax rate is computed, as reported in column 12D of the abstract of ratables for the current tax year.

2. Notwithstanding the provisions of any other law to the contrary, and to compensate municipalities for taxes lost due to exempt cemetery property, such property shall be assessed and subject to an in lieu of tax payment provided pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill).

3. Commencing in tax year 2012, each assessor, annually on or before September 15, shall prepare and send to the Director of the Division of Taxation, on a form prescribed by him, statements of the taxable value assessments, as if the same were not exempt from taxation listing each parcel of exempt cemetery property within the taxing district, as defined in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill.

4. Upon receipt of the assessments of exempt cemetery property, the director shall review and revise the list and the assessment of any parcel of exempt cemetery property, and annually, on or before November 15, shall notify the county board of taxation and the taxing district affected by any such change, addition, or revision. The determination by the director shall be final and there shall be no appeal taken with respect thereto, except to correct typographical errors and mathematical errors.

5. After completion of the review of the assessments of exempt cemetery property, the director shall compute the State's liability for in lieu of tax payments to each municipality affected. The in lieu payment shall be calculated by applying the effective local purpose tax rate of the municipality for the current tax year to the value of exempt cemetery property, in the municipality, and the sum of such calculations shall constitute the State's liability; provided, however, that the State shall have no liability to any one municipality when the sum of its liability is less than $1,000 and no municipality shall receive an in lieu payment from the State greater than an amount equal to 20% of the local purpose tax levy.

6. a. Upon completion of the review of assessments of exempt cemetery property and the calculation of the State's liability for in lieu of tax payments, the director shall certify annually to the State Treasurer, on or before December 1, the amount of aid payable to each municipality pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill). A copy of the certification shall transmitted to the Director of the Division of Local Government Services in the Department of Community Affairs.

b. State payments to municipalities for exempt cemetery property shall be made in four equal installments on August 1, September 1, October 1, and November 1 in the year succeeding certification by the director as set forth in this section. The amounts payable to each municipality pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be paid by the State Treasurer upon certification of the director and warrant of the Director of the Division of Budget and Accounting in the Department of the Treasury.

7. An in lieu of tax payment provided to a municipality pursuant to the provisions of this act shall be appropriated by the municipality in compliance with the provisions of the "Local Budget Law," N.J.S.40A:4-1 et seq. Any municipality receiving an in lieu of tax payment may anticipate the receipt of such payment as certified by the director and may file any amendment or correction in its local budget as may be required to reflect that certified amount in its budget.

8. In the event that an appropriation made for any year is less than the amount required for full payment in lieu of taxes to each municipality, the amount otherwise payable to each municipality shall be reduced in the same proportion as the appropriate made is to the amount required for full funding.

9. The director may promulgate such rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) in order to effectuate the purposes of this act and may require such facts and information from municipal assessors, county boards of taxation, and agencies of the State government as he may deem necessary to carry out its provisions.

10. There shall be annually appropriated a sum which shall be apportioned among municipalities which qualify for State aid under the provisions of this act.

11. There is appropriated $66,000,000 from the Property Tax Relief Fund to the Department of the Treasury for distribution to municipalities as payments in lieu of taxes.

12. This act shall take effect immediately.

STATEMENT

This bill provides for an in lieu of tax payment by the State to municipalities to compensate them for the loss of tax ratables resulting from cemetery and graveyard property that is exempt from taxation.

Under the bill, a municipal assessor would determine the taxable value of cemetery property as if it were not exempt from taxation. The bill defines "exempt cemetery property" as any land or place used or dedicated for use for burial of human remains, cremation of human remains, or disposition of cremated human remains. These assessments would be transmitted to, reviewed by, and if necessary, revised by the Director of the Division of Taxation in the Department of the Treasury. The director's determination with regard to the assessment of the value of exempt cemetery property would be final and could not be appealed.

The amount of each municipality's in lieu of tax payment is determined by multiplying the local purposes tax rate for the current tax year by the total assessed value of its exempt cemetery property. No municipality may receive a payment that is greater than 20% of its property tax levy for local purposes. The director must certify the amount owed to each municipality by December 1 of each year. Payments in lieu of taxes would be distributed to municipalities in four equal installments on August 1, September 1, October 1, and November 1 of the following year. Based on data reported by the county boards of taxation in the 2011 Abstract of Ratables 383 municipalities would be eligible for in lieu of tax payments under this bill.

The bill appropriates $66 million from the Property Tax Relief Fund to the Department of the Treasury for distribution to municipalities as payments in lieu of taxes.