Bill Text: NJ S86 | 2010-2011 | Regular Session | Introduced
Bill Title: Provides that taxes assessed on new property during period pending municipal-wide property revaluation shall not exceed 105 percent of taxes assessed on replaced property.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-12 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S86 Detail]
Download: New_Jersey-2010-S86-Introduced.html
Sponsored by:
Senator RONALD L. RICE
District 28 (Essex)
SYNOPSIS
Provides that taxes assessed on new property during period pending municipal-wide property revaluation shall not exceed 105 percent of taxes assessed on replaced property.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act limiting increases in tax assessments on certain replacement property pending revaluation and amending and supplementing chapter 4 of Title 54 of the revised statues.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 54:4-35 of the Revised Statues is amended to read as follows:
54:4-35. The assessor shall determine his taxable valuations of real property as of October 1 in each year and shall complete the preparation of his assessment list by January 10 following, on which date he shall attend before the county board of taxation and file with the board his complete assessment list, and a true copy thereof, to be called the assessor's duplicate. Such list and duplicate shall include the assessments of personal property reported or determined pursuant to this chapter and shall also indicate the properties for which the assessment provisions of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) are applicable. They shall be properly made up in such manner and form required by the Director of the Division of Taxation pursuant to section 54:4-26 of this chapter, to be examined, revised and corrected by the board as provided by law.
(cf: P.L.1966, c.138, s.9)
2. (New section) a. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Replacement property" means a newly constructed building or structure, constructed after October 1, 2007, that has not been previously used or occupied and that replaces a substantially similar demolished building or structure on the same land;
"Replaced property" means a deteriorated building or structure that is replaced with a replacement property;
"Revaluation" means the revaluation of all real property within the corporate boundaries of a municipality, performed under a contract approved by the Director of the Division of Taxation pursuant to P.L.1971, c.424 (C.54:1-35.35 et seq.).
b. Replacement property is substantially similar to the replaced property if the replacement property is used for the same purpose as the replaced property and if the net square footage of the replacement property is between 50 percent and 200 percent of the replaced property's net square footage.
c. Taxes levied, assessed or collected on any replacement property in each year before a replacement property's true and fair
value is assessed as part of a municipality's completion and implementation of a revaluation process, shall not exceed 105 percent of the most recent tax assessed on the replaced property.
d. The Director of the Division of Taxation shall issue such rules and regulations and design such tax forms as shall be necessary to carry into effect the provisions of this section.
3. This act shall take effect immediately.
STATEMENT
This bill would limit the increase in property taxes payable on any new building or structure, to five percent above the most recent tax assessment on the replaced building or structure, prior to its demolishment. The five percent increase limitation would remain in effect until the new building or structure has its true and fair value assessed as part of a municipal-wide revaluation.
This bill would address the State's interest in maintaining a habitable housing stock, especially in the older urban areas, by encouraging the renovation of property without resulting in an immediate disproportionate increase in property taxes during a time when the other properties are assessed below market value.
