Exempts certain water quality management structures, funded by certain federal and State grants, from real property taxation.
Impact
This legislation could significantly affect municipal budgeting and planning in New Jersey by reducing the tax burden on properties with certified water quality management infrastructures. The bill utilizes the encouragement of federal and state funding to enhance water management practices, thereby making it more economically feasible for local governments to engage in projects aimed at water quality improvement. Additionally, these tax exemptions could stimulate increased investment in sustainable infrastructure in the state, aligning local objectives with broader goals of environmental stewardship.
Summary
Assembly Bill A144 aims to provide a tax exemption for certain water quality management structures that are funded, in whole or in part, by federal and state grants. The bill defines 'water quality management structure' as any physical structure designed and installed through grants from specific agricultural agencies, aimed at improving water quality. With the approval of local enforcing agencies, properties containing such certified structures would be exempt from real property taxation, encouraging municipalities to invest in infrastructure that supports environmental protection.
Contention
While the intent of A144 is to promote environmental infrastructure, there are potential concerns regarding oversight and certification processes for the tax exemption. The bill grants local enforcing agencies the authority to certify qualifying structures, review applications, and conduct inspections, but it also allows for the revocation of exemptions under several conditions, including potential fraud or changes in the structure's use. This creates a reliance on local administrative capacities and may lead to inconsistent implementation across municipalities, raising concerns about equity and efficiency in how these exemptions are applied.
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Requires State reimbursement to local government units for first-year uncollected property tax revenue attributable to veterans' property tax exemptions.
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