Bill Text: NJ A1139 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes "Property Tax Study Commission" to examine New Jersey's property tax structure and develop recommendations for reducing residential property tax burden.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly State and Local Government Committee [A1139 Detail]
Download: New_Jersey-2024-A1139-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblywoman CAROL A. MURPHY
District 7 (Burlington)
Co-Sponsored by:
Assemblyman Conaway
SYNOPSIS
Establishes "Property Tax Study Commission" to examine New Jersey's property tax structure and develop recommendations for reducing residential property tax burden.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act establishing a "Property Tax Study Commission" and supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. There is hereby established a commission in but not of the Department of the Treasury to be known as the "Property Tax Study Commission." The commission shall examine the property tax system in New Jersey and identify ways in which the system could be improved in order to reduce the property tax burden on New Jersey residents. The commission shall also recommend amendments to the New Jersey Constitution and revisions to the statutes, which while revenue neutral in their overall impact, eliminate current inequities in the current system of property taxation, ensure greater uniformity in the application of property taxes, reduce property taxes as an overall share of public revenue, provide alternatives that lessen the dependence of local government on property taxes, and explore alternative means, including possible increases in other taxes, of funding local government services.
b. As part of its study, the commission may: examine the functions, duties, operations, and programs of local units of government; review statutes, regulations, ordinances, resolutions, opinions, orders, and agreements that govern the imposition, assessment, and collection of property taxes; and provide exemptions, deductions, and other benefits that reduce or offset a taxpayer's property tax liability. In formulating its recommendations, the commission may consider pending and proposed bills and resolutions that provide a means to improve or revise the current property tax structure, as well as evaluate systems of property tax reform that have been proposed or implemented in other states and jurisdictions.
c. The commission shall issue an interim report of its progress no later than nine months following its organization. The commission shall issue a final report of its findings, conclusions, and recommendations no later than 12 months following its organization. Both the interim and final report shall be submitted to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature. The commission's final report shall identify any legislative bills or resolutions that the commission recommends for adoption by the Legislature and shall specify if any recommendation necessitating any changes to the New Jersey Constitution should be recommended to the Legislature for submission to the voters in addition to such other recommendations as the commission deems necessary to achieve the purposes of this act. The commission shall make its reports available to the public electronically through a link prominently displayed on the official website of the Department of the Treasury.
d. The commission shall meet at least once per year in the five calendar years next following the issuance of its final report. The commission shall receive updates regarding the implementation of the recommendations contained in its final report and such other recommendations as the commission may provide from time to time. The commission shall issue an annual report regarding the implementation of its recommendations to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature. The commission shall expire 60 days following the date of the public hearing held in the fifth calendar year following the issuance of the final report pursuant to subsection b. of this section.
e. As used in this section, "revenue neutral" means that the aggregate amount of all revenues enacted under powers of the State, as accurately as can be estimated and measured, would not be increased or decreased due to the implementation of any change recommended by the commission.
2. a. The commission shall consist of 15 voting members as follows: the Commissioner of Community Affairs, ex officio, or the commissioner's designee; the Commissioner of Education, ex officio, or the commissioner's designee; the State Treasurer, ex officio, or the State Treasurer's designee; the Senate Majority Leader; the Assembly Majority Leader; the Senate Minority Leader; the Assembly Minority Leader; one member of the Governor's staff, appointed by the Governor; one public member appointed by the President of the Senate; one public member appointed by the Speaker of the General Assembly; one public member appointed by the Senate Minority Leader; one public member appointed by the Assembly Minority Leader; and three public members appointed by the Governor, one each from the northern, central, and southern regions of the State.
b. In appointing public members, the appointing authority shall select academic, business, and other professionals who have knowledge, expertise, and practical experience in county and municipal government, economic analysis, governmental finance and fiscal management, real property assessment and valuation, and tax policy, implementation, practice, administration, and regulation. No public member shall be a nominee for, or hold, an elective office.
c. Legislative members shall serve during the two-year legislative term in which appointments are made. The member of the Governor's staff appointed by the Governor shall serve at the pleasure of the Governor. Public members of the commission shall serve until the commission issues its final annual report to the Governor and the Legislature. Any vacancy in the membership of the commission shall be filled in the same manner as the original appointment was made. Any member of the commission may be removed for cause by the appropriate appointing authority. The members shall serve without compensation but shall be reimbursed for necessary expenses incurred in the performance of their duties, subject to the availability of funds therefor.
3. a. The commission shall organize as soon as practicable following the appointment of its members to elect a chairperson and to select a secretary, who need not be a member of the commission. The presence of eight members of the commission shall constitute a quorum. The commission may conduct business without a quorum, but may only vote on recommendations when a quorum is present. The commission may adopt rules of procedure and operation in furtherance of its responsibilities. The commission may meet at the call of its chairperson at the times and in the places it may deem appropriate and necessary to fulfill its duties, and may conduct public hearings at such place or places as it may designate.
b. The commission may divide itself into such subcommittees and task forces as may be appropriate, which task forces may include persons other than members of the commission, such as academicians, government officers, representatives of business, or other professionals, and may enter into such cooperative agreements as it deems necessary to accomplish its purposes. Persons serving on task forces who are not members of the commission shall serve at the appointment of the chairperson and shall be non-voting participants in the task forces. The commission may receive reports and testimony from independent experts, other qualified individuals, and members of the general public.
4. a. The commission shall be entitled to appoint an executive director and a staff and call to its assistance and avail itself of the services or employees of any State, county, or municipal department, board, bureau, commission or agency or authority as it may require and as may be available for its purposes, and to employ counsel and contract for professional and consulting services, and employ stenographic and clerical assistants, and incur traveling and other miscellaneous expenses as it may deem necessary, in order to perform its duties, and as may be within the limits of funds appropriated or otherwise made available for its purposes.
b. The staff of the commission shall be within the unclassified service of the State, and their compensation shall be determined by the commission within the limitations of funds appropriated or otherwise made available for its purposes.
c. The commission may make use of existing studies, surveys, data, and other materials in the possession of any State agency or authority, and such materials in the possession of any county, municipality, or political subdivision of the State, other than the records and files of the Director of the Division of Taxation that are confidential under R.S.54:50-8, but may direct the Director of the Division of Taxation to prepare for publication statistics so classified as to prevent the identification of a particular report and the items thereof. Each state agency, authority, county, municipality, and political subdivision of the State shall make any information and materials available to the commission as it may require to perform its responsibilities under this act.
5. This act shall take effect immediately.
STATEMENT
This bill establishes a 15-member "Property Tax Study Commission" in, but not of, the Department of the Treasury. The commission is charged with examining the property tax system in New Jersey and identifying ways in which the system can be improved in order to reduce the property tax burden on New Jersey residents. The commission may examine the functions, duties, and operations of local government, review current laws regarding the imposition, assessment, and collection of property taxes. The commission may also examine current property tax exemptions and deductions and other benefits that reduce or offset a taxpayer's property tax liability.
The bill directs the commission to recommend amendments to the New Jersey Constitution and revisions to the statutes, which recommendations would eliminate current eliminate inequities in the current system of property taxation, ensure greater uniformity in the application of property taxes, reduce property taxes as an overall share of public revenue, provide alternatives which lessen the dependence of local government on property taxes, and provide alternative means, including possible increases in other taxes, of funding local government services.
The commission membership includes the Commissioner of Community Affairs, Commissioner of Education, State Treasurer, one member of the Governor's staff (appointed by the Governor), four members of the Legislature (the Majority and Minority Leaders of the Senate and General Assembly), and seven public members (four appointed by the Legislative leadership and three appointed by the Governor). The bill directs the Governor to appoint one public member from the northern, central, and southern regions of the State.
The bill requires the commission to issue an interim report no later than nine months following its organization and a final report no later than 12 months following its organization. The bill also directs the commission to meet at least once per year for five years following the issuance of its final report to receive updates regarding the implementation of the recommendations in its final report and such other recommendations as it may provide from time to time. The bill requires the commission to issue an annual report. The bill directs all reports to be issued to the Governor and the Legislature and to be available to the public through the Department of the Treasury's Internet website. The bill provides that the commission would expire on the 60th day following the date of the public hearing held in the fifth year following the issuance of its final report.
