New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A3216

Introduced
3/7/22  

Caption

Subjects most State property to local property taxation beginning on July 1, 2022.

Impact

The bill is designed to relieve local governments from the financial strain of subsidizing state government operations by ensuring that the state pays its fair share of taxes. This shift is expected to diversify and stabilize local tax revenues, allowing municipalities to fund essential services more effectively. However, the legislation includes provisions to protect bondholders, whereby the exemption may continue for specific parcels if their tax status was previously secured by covenants. This certification is crucial to ensure that the rights of existing bondholders are not negatively impacted due to the new tax laws.

Summary

Assembly Bill A3216 proposes significant changes to the taxation of state-owned properties in New Jersey by subjecting most state property to local property taxes starting July 1, 2022. This legislation aims to end the long-standing tax-exempt status of property owned by the state, its agencies, and authorities, creating a more equitable tax burden for local residents and businesses. Under the new framework, local municipalities will have the ability to tax state properties in the same manner as they do private properties, which proponents argue will ensure fairness in local government financing.

Contention

While the bill has garnered support for promoting fiscal responsibility and local autonomy, there are notable points of contention. Critics, particularly from the state government, may view this taxation as a potential hindrance to state operations, worrying that increased costs may lead to budgetary issues. Additionally, the provision ensuring that the state cannot reduce municipal aid in response to new property tax liabilities has sparked debate about the sustainability of state funding and its obligations to local municipalities moving forward. Stakeholders in both state and local governance continue to discuss the implications of these changes.

Companion Bills

NJ S1398

Same As Subjects most State property to local property taxation beginning on July 1, 2022.

Previously Filed As

NJ S1398

Subjects most State property to local property taxation beginning on July 1, 2022.

NJ A3426

Subjects most State property to local property taxation beginning on July 1, 2022.

NJ S1527

Subjects most State property to local property taxation beginning on July 1, 2022.

NJ S4513

Exempts from property taxation real property privately owned and leased to certain public entities for public purposes.

NJ A5871

Exempts from property taxation real property privately owned and leased to certain public entities for public purposes.

NJ A5730

Requires taxation as real property of improvements on publicly owned real property used for purpose and protection of public water supply.

NJ A2698

Requires taxation as real property of improvements on publicly owned real property used for purpose and protection of public water supply.

NJ H7205

Property Subject To Taxation

NJ H7204

Property Subject To Taxation

NJ H8138

Property Subject To Taxation

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