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Bill > A5871
NJ A5871
NJ A5871Exempts from property taxation real property privately owned and leased to certain public entities for public purposes.
summary
Introduced
06/23/2025
06/23/2025
In Committee
06/23/2025
06/23/2025
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill exempts from property taxation all buildings and lands that are privately owned and leased to the State of New Jersey, its counties, or municipalities, and their agencies and authorities, school districts, and other taxing districts, provided that such buildings and lands are used for a public purpose for the duration of the lease agreement. For purposes of the bill, a "public purpose" would include use of land and buildings for: the operation of government functions and the provision of government services; stadiums and arenas; the preservation or exhibit of historical data, records or property; school district property which is leased to an exempt nonprofit organization, another board of education, or governmental agency; and property acquired by a municipality through tax title foreclosure or by deed in lieu of foreclosure which is not otherwise used for a private purpose.
AI Summary
This bill amends New Jersey property tax law to expand tax exemptions for properties leased to public entities. Specifically, the bill creates a new provision that exempts from property taxation any buildings and lands that are privately owned but leased to state, county, or municipal government entities, agencies, authorities, school districts, or other taxing districts, as long as those properties are used for public purposes. Public purposes are broadly defined to include government function operations, government service provisions, stadiums and arenas, historical preservation or exhibits, school district property leased to nonprofit organizations or other educational agencies, and properties acquired through tax foreclosure processes that are not used for private purposes. This expansion means that private property owners who lease their buildings or lands to governmental or public entities for qualifying public uses will now be eligible for property tax exemptions, potentially providing financial incentives for private property owners to support public infrastructure and services. The bill takes effect immediately upon enactment.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Introduced, Referred to Assembly State and Local Government Committee (on 06/23/2025)
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/A5871 |
| BillText | https://pub.njleg.gov/Bills/2024/A6000/5871_I1.HTM |
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