Bill > S3704

Introduced Session

This bill requires the seller of certain real property to disclose to a prospective purchaser of the property, information concerning payments in lieu of property taxes (PILOTs) required to be made by the owner to the municipality in which the property is located. Under the bill, prior to the execution of the agreement of sale of a parcel of real property constructed using a long-term tax exemption pursuant to the "Long Term Tax Exemption Law," P.L.1991, c.431 (C.40A:20-1 et seq.) and subject to attorney review, as applicable, the seller of the parcel of real property is required to provide to a prospective purchaser a detailed, written document explaining the PILOT payment required to be paid by the purchaser pursuant to an agreement between the municipality and the urban renewal entity that developed the real property. The document is required to inform the prospective purchaser about how the PILOT payment is calculated, the length of the term of the agreement requiring the PILOT payment to be made, and whether making a PILOT payment instead of paying property taxes would affect the prospective purchaser's ability to qualify for assistance from State property tax relief programs. The provisions of this bill are intended to inform prospective purchasers of the effects of purchasing real property constructed pursuant to the "Long Term Tax Exemption Law." Under this law, a developer enters into a financial agreement with a municipality to develop the property. Properties developed under the law are property-tax exempt and are instead subject to a financial agreement the municipality enters into with the developer for a payment in lieu of property tax. This distinction is important because since the purchasers of these homes do not pay property taxes, they may be ineligible for State property tax relief programs, including the $250 veterans' property tax deduction, the veterans' property tax exemption provided to veterans having a 100 percent service-connected disability, the $250 property tax deduction for income-limited senior citizens and persons with disabilities, the homestead property tax reimbursement (colloquially, the "senior freeze"), and the ANCHOR rebate. The sponsor believes that purchasers of these properties should be made aware, prior to the purchase of such a property, that they may be ineligible for these property tax benefits provided by the State of New Jersey.

Committee Categories

Joe Vitale (D)*, 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 09/30/2024)

Official Document