Bill > S3326

Introduced Session

This bill would end the tax exempt status of property owned by the State, its agencies, and authorities created by the State, although the tax exempt status of property owned by local units of government would continue. State property would become taxable on July 1, 2026, except when a certification, prepared by an appropriate official, is filed with the municipal tax assessor stating that removal of the tax exempt status of a specific parcel would impair the rights of bondholders pursuant to a covenant entered into prior to July 1, 2026. Those parcels would continue to be subject to the law concerning State payments in lieu of taxes, N.J.S.A.54:4-2.2a et seq. If the State becomes delinquent on the property taxes due and payable for a parcel, then the tax lien would be enforced in the same manner as all other tax liens. This bill is intended to require the State and its agencies and authorities to pay their fair share of the local tax burden so that the local residents and businesses are not unduly burdened by the cost of subsidizing State government operations. The bill also prohibits the State from reducing a municipality's formula aid in an attempt to offset the new property tax liability due and payable to that municipality, except with respect to State payments in lieu of taxes for those properties that will now be subject to taxation.

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Shirley Turner (D)*, 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 02/05/2026)

Official Document