New Jersey Assembly Bill A2698

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

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

Impact

The implementation of Bill A2698 could significantly impact local municipalities wherein publicly owned watershed lands are located. By allowing taxation on improvements—such as buildings and dams—municipalities could see an increase in revenue, which could be allocated towards various public services or maintenance of the watershed land itself. This could help alleviate budget constraints faced by local governments while potentially leading to better management of public water resources.

Summary

Bill A2698 aims to amend existing property taxation laws to require that improvements made on publicly owned real property used for the purpose and protection of public water supply be taxed as real property by the municipalities in which those improvements are located. Currently, while the land designated for public water supply is subject to property taxation, any structures or improvements made on that land are exempt. This proposed legislation seeks to create a more equitable tax structure that includes these improvements under municipal taxation.

Contention

There may be points of contention regarding the potential financial burden this bill could impose on local governments managing both the land and the infrastructure used for public water supply. Supporters argue that it is fair for improvements on publicly owned land to be taxed in the same manner as those on privately owned lands, thus leveling the playing field. However, opponents might express concerns that taxing these improvements could deter investment into public water systems, which are crucial for community health and safety.