S 1278

SENATE, No. 1278
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
SYNOPSIS
���� Exempts from property taxation real property
privately owned and leased to certain public entities for public purposes.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act exempting from property taxation real property that is
privately owned and leased to certain public entities for public purposes, and
amending R.S.54:4-3.3.
���� Be It
Enacted by the Senate and General Assembly of
the State of New Jersey:
���� 1.� R.S.54:4-3.3 is amended to
read as follows:
���� 54:4-3.3.� a.� Except
as otherwise provided by article 1 of this chapter [(s.54:4-1 et seq.)] (R.S.54:4-1
et seq.) and P.L.2009, c.6 (C.54:4-3.6f et seq.), the property of the State
of New Jersey; and the property of the respective counties and municipalities,
and their agencies and authorities, school districts, and other taxing
districts used for public purposes, which public purposes include the use for the
operation of government functions and the provision of government services,
stadiums and arenas, or for the preservation or exhibit of historical data,
records or property; school district property which is leased to a nonprofit
organization which is exempt from taxation under R.S.54:4-3.6, for use by that
organization in its exempt functions; school district property which is leased
to another board of education or governmental agency; and property acquired by any
municipality through tax title foreclosure or by deed in lieu of foreclosure,
if not used for private purpose, shall be exempt from taxation under this
chapter, but this exemption shall not include real property bought in for debts
or on foreclosure of mortgages given to secure loans out of public funds or out
of money in court, which property shall be taxed unless devoted to public use.
���� The lands of counties,
municipalities, and other municipal and public agencies of this State used for
the purpose and for the protection of a public water supply shall be subject to
taxation by the respective taxing districts where situated, at the taxable
value thereof, without regard to any buildings or other improvements thereon,
in the same manner and to the same extent as the lands of private persons, but
all other property so used shall be exempt from taxation.� Property, the title
to which is in the Morris Canal and Banking Company, in trust for the State,
shall, so long as the title is so vested, be deemed to be the property of the
State within the meaning of any tax law.
���� b.� All buildings and lands
that are privately owned, but leased to the State of New Jersey, its counties, or
municipalities, and their agencies and authorities, school districts, and other
taxing districts shall be exempt from taxation, provided such buildings and
lands are used for public purposes, as those purposes are set forth pursuant to
subsection a. of this section.
(cf:�� P.L.2016, c.65, s.2)
���� 2.� This act shall take effect
immediately.
STATEMENT
���� 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.