Bill Text: NJ ACR164 | 2024-2025 | Regular Session | Introduced
Bill Title: Proposes constitutional amendment to limit annual increase in assessment of real property.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2025-05-08 - Introduced, Referred to Assembly Housing Committee [ACR164 Detail]
Download: New_Jersey-2024-ACR164-Introduced.html
Sponsored by:
Assemblyman ALEX SAUICKIE
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Proposes constitutional amendment to limit annual increase in assessment of real property.
CURRENT VERSION OF TEXT
As introduced.
A Concurrent Resolution proposing to amend Article VIII, Section I, paragraph 1 of the Constitution of the State of New Jersey.
Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):
1. The following proposed amendment to the Constitution of the State of New Jersey is hereby agreed to:
PROPOSED AMENDMENT
Amend Article VIII, Section I, paragraph 1 to read as follows:
l. (a) Property shall be assessed for taxation under general laws and by uniform rules. All real property assessed and taxed locally or by the State for allotment and payment to taxing districts shall be assessed according to the same standard of value, except as otherwise permitted [herein] in this paragraph, and such real property shall be taxed at the general tax rate of the taxing district in which the property is situated, for the use of such taxing district.
(b) The Legislature shall enact laws to provide that the value of land, not less than 5 acres in area, which is determined by the assessing officer of the taxing jurisdiction to be actively devoted to agricultural or horticultural use and to have been so devoted for at least the 2 successive years immediately preceding the tax year in issue, shall, for local tax purposes, on application of the owner, be that value which such land has for agricultural or horticultural use.
Any such laws shall provide that when land which has been valued in this manner for local tax purposes is applied to a use other than for agriculture or horticulture it shall be subject to additional taxes in an amount equal to the difference, if any, between the taxes paid or payable on the basis of the valuation and the assessment authorized hereunder and the taxes that would have been paid or payable had the land been valued and assessed as otherwise provided in this Constitution, in the current year and in such of the tax years immediately preceding, not in excess of 2 such years in which the land was valued as herein authorized.
Such laws shall also provide for the equalization of assessments of land valued in accordance with the provisions hereof and for the assessment and collection of any additional taxes levied thereupon and shall include such other provisions as shall be necessary to carry out the provisions of this amendment.
(c) The Legislature shall enact laws to provide a limitation on the annual increases to the assessed value of real property, including, but not limited to, land that has been assessed pursuant to subsection (b) of this paragraph. Any such laws shall require that real property be assessed as of the October 1 next following approval by the voters of this proposed amendment for use in the next succeeding tax year. Any such laws shall also limit the amount by which the assessed value of real property may be increased for each succeeding tax year to no more than two percent of the assessed value of the property from the prior year, except that real property shall be assessed, for use in the next succeeding tax year, as of October 1 of the year following a change of ownership, as defined by the Legislature, or in the case of land that has been assessed pursuant to subsection (b) of this paragraph, following a change in use of the land for a purposes other than for agriculture or horticulture use. Thereafter, any annual increase in the assessed value of the real property shall be subject to the limitations required by this subparagraph.
(cf: Article VIII, Section I, paragraph 1, amended effective December 5, 1963)
2. When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.
3. This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:
There shall be printed on each official ballot to be used at the general election, the following:
a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question as follows:
If you favor the proposition printed below make a cross (X), plus (+), or check (a) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the word "No."
b. In
every municipality the following question:
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CONSTITUTIONAL AMENDMENT TO LIMIT ANNUAL PROPERTY ASSESSMENT INCREASES |
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YES
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Do you approve amending the State Constitution to limit real property assessment increases each year? The proposed amendment would require the Legislature to enact laws to provide the assessment limitation. The laws would require real property to be assessed as of the October 1 next following the approval of this amendment by the voters. The laws would then limit annual increases in the assessed value of real property subject to the limitation to no more than two percent of its assessed value from the prior year. This limitation would not apply after a change of ownership of any property or a change in use of farmland property. The laws would require real property to be assessed as of October 1 of the year following a change of ownership or in use of farmland property. |
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INTERPRETIVE STATEMENT |
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NO
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This proposed amendment limits real property assessment increases each year. Real property is assessed by municipalities each year to determine its value. The assessed value of each property is then used to determine the amount of property taxes owed by the owner of the property for the tax year. The amendment would require the Legislature to enact laws to provide the assessment limitation. The laws would require real property to be assessed as of the October 1 next following the approval of this amendment by the voters. Afterwards, the laws would limit annual increases in the assessed value of real property to no more than two percent of the assessed value from the prior year. However, the laws would require the property to be assessed as of October 1 of the year next following a change of ownership of any property or a change in use of farmland property. Thereafter, the assessed value of the property could not increase by more than two percent of the assessed value from the prior year. The laws would be required to define what constitutes a change of ownership. |
STATEMENT
This concurrent resolution proposes an amendment to the State Constitution to require the Legislature to enact laws to limit annual increases to the assessed value of real property for property tax purposes.
The laws would first require real property to be assessed as of the October 1 next following the date in which the amendment is approved by voters. Afterwards, the laws would limit annual assessment increases to no more than two percent of the real property's assessed value from the prior year.
However, after a change of ownership for any property or a change in use of farmland property, the laws would also require that the property be assessed as of the October 1 of the year next following the ownership change. Thereafter, the property would be subject to the two percent limitation on annual assessment increases. The assessment limitation would apply until the next time the property changes ownership.
