Bill > A1380

Introduced Session

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.

AI Summary

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Julio Marenco (D)*, 

Introduced, Referred to Assembly State and Local Government Committee (on 01/09/2024)

Official Document