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Bill > S4840
NJ S4840
NJ S4840Increases amounts of certain payments in lieu of taxes paid for lands owned by State or nonprofit organization for recreation and conservation purposes.
summary
Introduced
11/10/2025
11/10/2025
In Committee
11/10/2025
11/10/2025
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill would increase the amounts of certain payments in lieu of taxes (PILOTs) paid for lands owned by the State or a nonprofit organization and preserved for recreation and conservation purposes (open space lands). Current law requires that the State pay a certain amount annually to municipalities, in proportion to the acreage of open space lands in the municipality. Section 29 of P.L.1999, c.152 (C.13:8C-29) applies to lands that are acquired using constitutionally dedicated corporation business tax (CBT) revenues, and requires that, beginning 13 years after the land was acquired, the State pay: (1) $2 per acre to municipalities that are comprised of less than 20 percent open space lands; (2) $5 per acre to municipalities that are comprised of between 20 percent and 40 percent open space lands; (3) $10 per acre to municipalities that are comprised of between 40 percent and 60 percent open space lands; and (4) $20 per acre to municipalities that are comprised of 60 percent open space lands or greater. Section 30 of P.L.1999, c.152 (C.13:8C-30) applies to open space lands that were not acquired using dedicated CBT funding. It establishes the same formula for PILOTs, but applies the formula regardless of when the land was acquired. This bill would increase the per-acre amounts in the formulas in both sections of law to the following: (1) $3 per acre to municipalities that are comprised of less than 20 percent open space lands; (2) $7.50 per acre to municipalities that are comprised of between 20 percent and 40 percent open space lands; (3) $15 per acre to municipalities that are comprised of between 40 percent and 60 percent open space lands; and (4) $40 per acre to municipalities that are comprised of 60 percent open space lands or greater.
AI Summary
This bill increases the payments in lieu of taxes (PILOTs) that the State must make to municipalities for lands owned by the State or nonprofit organizations for recreation and conservation purposes. Currently, these payments are based on the percentage of open space lands in a municipality, with different per-acre rates depending on the proportion of open space. The bill raises these per-acre rates from the existing amounts: for municipalities with less than 20% open space, the rate increases from $2 to $3 per acre; for municipalities with 20-40% open space, from $5 to $7.50 per acre; for municipalities with 40-60% open space, from $10 to $15 per acre; and for municipalities with 60% or more open space, from $20 to $40 per acre. The bill applies to two types of land acquisitions: those made using constitutionally dedicated corporation business tax (CBT) revenues and those made using other funding sources. The purpose of these payments is to compensate municipalities for the loss of tax revenue when land is acquired by the state or qualifying nonprofit organizations for conservation purposes. The payments will continue to be made annually on October 1 and will be distributed from the General Fund, not from constitutionally dedicated funds. Municipalities must use these payments in the same manner as they would use property tax revenue.
Committee Categories
Agriculture and Natural Resources
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Environment and Energy Committee (on 11/10/2025)
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/S4840 |
| BillText | https://pub.njleg.gov/Bills/2024/S5000/4840_I1.HTM |
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