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NJ SCR103
NJ SCR103Proposes constitutional amendment to allow lower property tax rate on improvements than on land.
summary
Introduced
05/09/2024
05/09/2024
In Committee
05/09/2024
05/09/2024
Crossed Over
Passed
Dead
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 implement a property tax system where improvements (such as buildings) are taxed at a lower rate than land. Currently, all property is taxed at a single rate, but this amendment would give the state Legislature the power to create laws enabling municipalities to adopt differential tax rates. The Legislature could choose to make this option available to all municipalities or limit it to those in need of infrastructure investment. If implemented, municipalities would have discretion in determining the tax rate difference, could phase in the new rates over multiple years, and would have a method to return to a single-rate system if desired. The proposed amendment would be submitted to voters at a general election, with voters asked to approve or reject the constitutional change that would give municipalities more flexibility in property tax assessment.
Committee Categories
Housing and Urban Affairs
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 05/09/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/SCR103 |
| BillText | https://pub.njleg.gov/Bills/2024/SCR/103_I1.HTM |
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