Increases amounts of certain payments in lieu of taxes paid for lands owned by State or nonprofit organization for recreation and conservation purposes.

A1351

ASSEMBLY, No. 1351

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman CODY D. MILLER

District 4 (Atlantic, Camden and Gloucester)

Assemblyman DAN HUTCHISON

District 4 (Atlantic, Camden and Gloucester)

SYNOPSIS

���� Increases amounts of certain payments in lieu of
taxes paid for lands owned by State or nonprofit organization for recreation
and conservation purposes.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
concerning certain payments in lieu of taxes and
amending P.L.1999, c.152.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 29 of P.L.1999,
c.152 (C.13:8C-29) is amended to read as follows:

���� 29. a.� (1) (a) To the end
that municipalities may not suffer a loss of taxes by reason of the acquisition
and ownership by the State of lands in fee simple for recreation and
conservation purposes, or the acquisition and ownership by qualifying tax exempt
nonprofit organizations of lands in fee simple for recreation and conservation
purposes that become certified exempt from property taxes pursuant to P.L.1974,
c.167 (C.54:4-3.63 et seq.) or similar laws, using constitutionally dedicated
moneys in whole or in part, the State shall pay annually on October 1 to each
municipality in which lands are so acquired and owned, for a period of 13 years
following an acquisition the following amounts:� in the first year a sum of
money equal to the tax last assessed and last paid by the taxpayer upon this
land and the improvements thereon for the taxable year immediately prior to the
time of its acquisition and thereafter the following percentages of the amount
paid in the first year:� second year, 92
[
%
]

percent
;
third year, 84
[
%
]

percent
;
fourth year, 76
[
%
]

percent
;
fifth year, 68
[
%
]

percent
;
sixth year, 60
[
%
]

percent
;
seventh year, 52
[
%
]

percent
;
eighth year, 44
[
%
]

percent
;
ninth year, 36
[
%
]

percent
;
10th year, 28
[
%
]

percent
;
11th year, 20
[
%
]

percent
;
12th year, 12
[
%
]

percent
;
13th year, 4
[
%
]

percent
.

���� (b)�� Notwithstanding the
provisions of subparagraph (a) of this paragraph to the contrary, any payment
made pursuant to that subparagraph shall be not less than the amount that would
be paid as provided pursuant to paragraph (2) of this subsection.

���� (2)�� After the 13th year, or
sooner as provided pursuant to subparagraph (b) of paragraph (1) of this
subsection, the State shall pay annually on October 1 to each municipality in
which lands are so acquired and owned the following amounts:�
[
$2
]

$3
per
acre of lands so acquired and owned for any municipality for which all lands
owned in fee simple by the State or by a qualifying tax exempt nonprofit
organization for recreation and conservation purposes constitute less than 20
[
%
]

percent

of the total land area of the municipality;
[
$5
]

$7.50

per acre of lands so acquired and owned for any municipality for which all
lands owned in fee simple by the State or by a qualifying tax exempt nonprofit
organization for recreation and conservation purposes constitute at least 20
[
%
]

percent

but less than 40
[
%
]

percent

of the total land area of the municipality;
[
$10
]

$15

per acre of lands so acquired and owned for any municipality for which all
lands owned in fee simple by the State or by a qualifying tax exempt nonprofit
organization for recreation and conservation purposes constitute at least 40
[
%
]

percent

but less than 60
[
%
]

percent

of the total land area of the municipality; and
[
$20
]

$40
per acre of lands so
acquired and owned for any municipality for which all lands owned in fee simple
by the State or by a qualifying tax exempt nonprofit organization for
recreation and conservation purposes constitute at least 60
[
%
]

percent

of the total land area of the municipality.

���� b.��� In the event that land
acquired by the State, a local government unit, a qualifying tax exempt
nonprofit organization, or the Palisades Interstate Park Commission for
recreation and conservation purposes was assessed at an agricultural and
horticultural use valuation in accordance with provisions of the "Farmland
Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.) at the time
of its acquisition by the State, local government unit, qualifying tax exempt
nonprofit organization, or the Palisades Interstate Park Commission, no
roll-back tax pursuant to section 8 of P.L.1964, c.48 (C.54:4-23.8) shall be
imposed as to this land nor shall this roll-back tax be applicable in
determining the annual payments to be made pursuant to subsection a. of this section
by the State to the municipality in which this land is located.

���� c.���� Any payments made by
the State pursuant to this section shall be paid from the General Fund but not
from constitutionally dedicated moneys.

���� d.��� All sums of money
received by the respective municipalities as compensation for loss of tax
revenue pursuant to this section shall be applied to the same purposes as is
the tax revenue from the assessment and collection of taxes on real property of
these municipalities, and to accomplish this end the sums shall be apportioned
in the same manner as the general tax rate of the municipality for the tax year
preceding the year of receipt.

���� e.���� For the purposes of
this section, lands owned in fee simple by the State for recreation and
conservation purposes shall mean State parks and forests, as defined pursuant
to section 3 of P.L.1983, c.324 (C.13:1L-3), State wildlife management areas,
and any other lands owned in fee simple by the State and administered by the
Department of Environmental Protection for recreation and conservation
purposes.

(cf: P.L.2001, c.312, s.2)

���� 2.��� Section 30 of P.L.1999,
c.152 (C.13:8C-30) is amended to read as follows:

���� 30. a.� With respect to lands
acquired using any funding source other than constitutionally dedicated moneys,
whether prior to the date of enactment of
[
this
act
]

P.L.1999,
c.152 (C.13:8C-1 et seq.)
or thereafter, and owned in fee simple by the
State or by a qualifying tax exempt nonprofit organization, and� which lands
are permanently preserved for recreation and� conservation� purposes, the State
shall pay annually on October 1 to each municipality in which those lands are
located the following amounts:�
[
$2
]

$3
per
acre of lands so acquired and owned for any municipality for which all lands
owned in fee simple by the State or by a qualifying tax exempt nonprofit
organization for recreation and conservation purposes constitute less than 20
[
%
]

percent

of the total land area of the municipality;
[
$5
]

$7.50

per acre of lands so acquired and owned for any municipality for which all
lands owned in fee simple by the State or by a qualifying tax exempt nonprofit
organization for recreation and conservation purposes constitute at least 20
[
%
]

percent

but less than 40
[
%
]

percent

of the total land area of the municipality;
[
$10
]

$15

per acre of lands so acquired and owned for any municipality for which all
lands owned in fee simple by the State or by a qualifying tax exempt nonprofit
organization for recreation and conservation purposes constitute at least 40
[
%
]

percent

but less than 60
[
%
]

percent

of the total land area of the municipality, and
[
$20
]

$40
per acre of lands so
acquired and owned for any municipality for which all lands owned in fee simple
by the State or by a qualifying tax exempt nonprofit organization for
recreation and conservation purposes constitute at least 60
[
%
]

percent

of the total land area of the municipality.

���� b.��� In the event payments in
lieu of taxes are due and payable from the State on those lands pursuant to
another law, and those payments, if made by the State, would exceed those that
would be paid pursuant to this section, the payments shall be made in accordance
with the other law.� In no case shall payments be made to a municipality in
compliance with both this section and any other applicable law.

���� c.���� Any payments made by
the State pursuant to this section shall be paid from the General Fund but not
from constitutionally dedicated moneys.

���� d.��� All sums of money
received by the respective municipalities as compensation for loss of tax
revenue pursuant to this section shall be applied to the same purposes as is
the tax revenue from the assessment and collection of taxes on real property of
these municipalities, and to accomplish this end the sums shall be apportioned
in the same manner as the general tax rate of the municipality for the tax year
preceding the year of receipt.

���� e.���� For the purposes of
this section, lands owned in fee simple by the State for recreation and
conservation purposes shall mean State parks and forests, as defined pursuant
to section 3 of P.L.1983, c.324 (C.13:1L-3), State wildlife management areas,
and any other lands owned in fee simple by the State and administered by the
Department of Environmental Protection for recreation and conservation
purposes.

(cf: P.L.1999, c.152, s.30)

���� 3. This act shall take effect
immediately.

STATEMENT

���� This bill would increase the
amounts of certain payments in lieu of taxes (PILOTs) paid for lands owned by the
State or a nonprofit organization and preserved for recreation and conservation
purposes (open space lands).

���� Current law requires that the
State pay a certain amount annually to municipalities, in proportion to the
acreage of open space lands in the municipality.� Section 29 of P.L.1999, c.152
(C.13:8C-29) applies to lands that are acquired using constitutionally
dedicated corporation business tax (CBT) revenues, and requires that, beginning
13 years after the land was acquired, the State pay:

���� (1) $2 per acre to
municipalities that are comprised of less than 20 percent open space lands;

���� (2) $5 per acre to
municipalities that are comprised of between 20 percent and 40 percent open
space lands;

���� (3) $10 per acre to
municipalities that are comprised of between 40 percent and 60 percent open
space lands; and

���� (4) $20 per acre to
municipalities that are comprised of 60 percent open space lands or greater.

���� Section 30 of P.L.1999, c.152
(C.13:8C-30) applies to open space lands that were not acquired using dedicated
CBT funding.� It establishes the same formula for PILOTs, but applies the
formula regardless of when the land was acquired.

���� This bill would increase the
per-acre amounts in the formulas in both sections of law to the following:

���� (1) $3 per acre to
municipalities that are comprised of less than 20 percent open space lands;

���� (2) $7.50 per acre to
municipalities that are comprised of between 20 percent and 40 percent open
space lands;

���� (3) $15 per acre to
municipalities that are comprised of between 40 percent and 60 percent open
space lands; and

���� (4) $40 per acre to
municipalities that are comprised of 60 percent open space lands or greater.