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Bill > ACR95


NJ ACR95

NJ ACR95
Proposes constitutional amendment to allow lower property tax rate on improvements than on land.


summary

Introduced
01/09/2024
In Committee
01/09/2024
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

This resolution proposes a constitutional amendment requiring the Legislature to allow certain municipalities to tax improvements at a lower rate than land. An improvement refers to a building or other man-made condition. Property taxes in New Jersey are collected by municipalities, and are used to fund county, school, municipal, and other local needs. Currently, municipalities are required to apply a single value-based tax rate to both land and improvements. This constitutional amendment directs the Legislature to enact general laws allowing municipalities to adopt ordinances under which improvements are taxed at a lower rate than land. The Legislature may allow all municipalities to participate, or limit participation to municipalities in need of infrastructure investment, according to standards established by the Legislature. The implementing legislation will permit participating municipalities to phase-in the changes over a period of years. The implementing legislation will also establish a method permitting a municipality to return to a single property tax rate system.

AI Summary

This joint resolution proposes a constitutional amendment that would allow New Jersey municipalities to establish a property tax system with different tax rates for land and improvements (such as buildings). Currently, all properties are taxed at a single rate, but this amendment would enable local governments to tax land at a higher rate than physical improvements. The Legislature would have the authority to create general laws determining which municipalities can adopt this dual-rate system, potentially limiting participation to communities in need of infrastructure investment. If implemented, municipalities would have discretion in setting the difference between land and improvement tax rates, could phase in these changes over multiple years, and would also have a pathway to return to a single tax rate system if desired. The proposed amendment would be submitted to voters at a general election, with a ballot question and interpretive statement explaining the potential change to the property tax structure.

Committee Categories

Government Affairs

Sponsors (2)

Last Action

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

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