Bill Text: NJ A3874 | 2010-2011 | Regular Session | Introduced
Bill Title: Exempts completed and under-construction buildings used or intended to be used in the work of non-profit hospital associations and corporations from taxation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-03-07 - Introduced, Referred to Assembly Housing and Local Government Committee [A3874 Detail]
Download: New_Jersey-2010-A3874-Introduced.html
Sponsored by:
Assemblyman WAYNE P. DEANGELO
District 14 (Mercer and Middlesex)
SYNOPSIS
Exempts completed and under construction buildings used or intended to be used in the work of non-profit hospital associations and corporations from taxation.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning tax exemptions for certain hospital property and supplementing chapter 4 of Title 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Non-Profit Medical Facilities Tax Exemption Act of 2010."
2. a. Any construction of, addition or alteration to, or relocation of, a structure or project, intended to be used in the work of associations and corporations organized exclusively for hospital purposes and exempt from taxation under R.S.54:4-3.6 shall be exempt from taxation, provided that the construction, addition, or alteration project, or relocated structure of facility, received a construction permit as described in section 13 of P.L.1975, c.217 (C.52:27D-131) on or after January 1, 2008.
b. In the event that the construction of, alteration or addition to, or relocation of, a structure or project has not received a temporary or permanent certificate of occupancy pursuant to section 15 of P.L.1975, c.217 (C.52:27D-133) within five years following issuance of a construction permit, the governing body of the municipality may, by appropriate resolution, resolve that the assessor for the taxing district shall either seek the assessment that would otherwise have been due, or continue the exemption from year-to-year.
For purposes of this section, "relocation" means the movement, construction, relocation, replacement, or rebuilding of a health care facility, or part thereof, licensed by the Department of Health and Senior Services, regardless of whether the licensed facility is on a separate lot or parcel.
3. Any association or corporation that has paid property taxes for a structure or project to which section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) is applicable shall be entitled to a reimbursement of moneys paid, representing the property taxes on that project, provided that the taxpayer submits a claim, in writing, to the entity to which taxes were paid within 120 days of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill). The entity to which the taxes were paid shall promptly review all requests for refunds, and shall make a reimbursement to the claimant within 30 days of receipt of a valid claim for a reimbursement. If reimbursement is not made within 30 days of receipt, the taxpayer may file a complaint with the Tax Court of New Jersey for a judgment ordering reimbursement to the taxpayer.
4. This act shall take effect immediately.
STATEMENT
This bill clarifies the law regarding property tax exemptions for non-profit hospitals. Specifically, this legislation provides that buildings actually used or intended to be used in the work of associations or corporations organized exclusively for hospital purposes, even when under construction, are exempt from property tax assessments pursuant to N.J.S.A.54:4-1 et seq. This legislation shall be applicable only to construction projects that received a construction permit on or after January 1, 2008.
Under current law, hospitals and medical facilities in the process of construction, as a new facility, an expansion or an addition, or relocation of a previously exempt facility to another location within the State, may be subject to property taxes as partial assessments. As directly impacting the health and well-being of the public, and as institutions positively impacting regions beyond municipal borders, hospitals should not be discouraged from constructing, expanding, or relocating facilities by partial assessments. In addition, partial assessments have been inconsistently and arbitrarily applied by local tax assessors, who may target hospitals choosing to construct, replace, relocate, or expand. This bill clarifies the state of the law, and expressly exempts buildings under construction intended to be used by associations and corporation organized exclusively for hospital purposes throughout all phases of construction.
This bill establishes a reimbursement procedure for any monies paid by an exempt hospital entity for a project receiving issuance of a permit after January 1, 2008. All claims must be made to the municipality to which payment was made within 120 days of the effective date of this legislation. All valid claims must be reimbursed within 30 days of the date on which a municipality receives a claim.
This bill also requires that construction be completed within five years of the issuance of the building permit for the exemption to be permanent. Under the bill, "completion" means that the building is substantially ready for the use for which it was intended.
