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A165
ASSEMBLY, No. 165
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman DAWN FANTASIA
District 24 (Morris, Sussex and Warren)
Assemblyman MICHAEL INGANAMORT
District 24 (Morris, Sussex and Warren)
SYNOPSIS
���� Requires DEP to evaluate extending sewer service in
Lake Hopatcong region; allows gross income tax deduction for septic system
maintenance under certain circumstances.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
concerning Lake Hopatcong and its watershed, and
supplementing Title 54A of the New Jersey Statutes and Title 58 of the Revised
Statutes.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.� a.� Within 90 days after
the effective date of this act, the Department of Environmental Protection
shall study the feasibility of extending sewer service in the area surrounding
Lake Hopatcong and its watershed and make a determination as to whether the
expansion of sewer service in the watershed would result in a significant
improvement to the water quality of Lake Hopatcong.�
���� b.� In conducting the study
and making the determination required pursuant to this section, the department
shall:
���� (1) consider whether expansion
of sewer service in the area surrounding Lake Hopatcong and its watershed would
comply with the applicable provisions of the �Water Pollution Control Act,�
P.L.1977, c.74 (C.58:10A-1 et seq.), and the �Water Quality Planning Act,�
P.L.1977, c.75 (C.58:11A-1 et seq.);
���� (2) determine the cost and
availability of financial assistance from the State for the expansion of sewer
service; and
���� (3)�� consult with the
governing body of each of the municipalities in the affected area and the Lake
Hopatcong Commission created pursuant to section 3 of P.L.2000, c.175
(C.58:4B-3).
���� c.� If the Department of
Environmental Protection determines that the extension of sewer service in the
area surrounding Lake Hopatcong and its watershed will not result in a
significant improvement to the water quality of the lake or is otherwise not
appropriate, the commissioner shall:
���� (1)�� notify the State
Treasurer and the Director of the Division of Taxation of the decision;
���� (2) provide a delineation to
the Director of the Division of Taxation of the geographic area encompassing
Lake Hopatcong and its watershed in which properties eligible for the tax
dedication provided pursuant to section 2 of P.L.��� , c.�� (C.������� )
(pending before the Legislature as this bill) are located; and
���� (3) conduct a public education
campaign to notify the municipalities and residents of the availability of the
tax deduction provided pursuant to section 2 of P.L.��� , c.�� (C.������� )
(pending before the Legislature as this bill), which shall include, but not be
limited to, notifying the governing body and local health department of each
municipality with property located within the area delineated pursuant to
paragraph (2) of this subsection of the availability of the tax deduction and
the types of septic system maintenance eligible.� This information shall also
be posted in a prominent location on the department�s website. �
���� 2.� a.� Commencing in the taxable
year beginning on or after the January 1 next following notification by the
Commissioner of Environmental Protection to the State Treasurer and the
Director of the Division of Taxation pursuant to subsection c. of section 1 of
P.L.��� , c.�� (C.������� ) (pending before the Legislature as this bill), a
taxpayer shall be allowed to deduct from the taxpayer�s gross income an amount
equal to one-half the amount paid by the taxpayer during the taxable year for
maintenance of a septic system located within the area delineated pursuant to
paragraph (2) of subsection c. of section 1 of P.L.��� , c.�� (C.������� )
(pending before the Legislature as this bill).
���� In the case of married
individuals who file separately, each individual shall be permitted to claim
one-half of the deduction allowed pursuant to this section for amounts paid in
connection with a primary residence occupied by both individuals during the
taxable year.
���� b.� To be eligible for the
deduction pursuant to subsection a. of this section, a taxpayer shall submit to
the director a receipt of work done and amounts paid for septic system
maintenance.� The receipt shall include sufficient detail to indicate the work
was conducted in compliance with rules and regulations governing the repair and
operation of individual septic systems adopted by the Department of
Environmental Protection pursuant to the �The Realty Improvement Sewerage and Facilities
Act (1954),� P.L.1954, c.199 (C.58:11-23 et seq.) and the �Water Pollution
Control Act,� P.L.1977, c.74 (C.58:10A-1 et seq.).�
���� c. The director, in
consultation with the Commissioner of Environmental Protection, shall adopt
standards by which taxpayers shall document proof of eligibility for the
deduction.
���� 3.� This act shall take effect
immediately.
STATEMENT
���� This bill would require the
Department of Environmental Protection (DEP) to evaluate extending sewer
service in areas surrounding Lake Hopatcong and its watershed.� If the DEP
determines installation of sewer service would not significantly improve water
quality of the lake or is otherwise not feasible, this bill would provide a gross
income tax deduction for one-half of the cost of the maintenance of a septic
system performed at a taxpayer�s primary residence located in an area that may
impact Lake Hopatcong and its watershed.
���� Specifically, this bill would
require the DEP, within 90 days after the date the bill is enacted into law, to
study the feasibility of extending sewer service in the area surrounding Lake
Hopatcong and its watershed and make a determination as to whether the
expansion of sewer service in the watershed would result in a significant
improvement to the water quality of Lake Hopatcong.� The bill directs the DEP
to consult with the appropriate local governing bodies and the Lake Hopatcong
Commission in conducting the study and making the determination required by the
bill.
���� If the DEP determines that
installation of sewer service is not feasible or would not result in a
significant improvement to the water quality of Lake Hopatcong, the DEP
Commissioner would notify the Director of the Division of Taxation of the
finding.� A homeowner would then be eligible for a gross income tax deduction
for one-half of the cost of performing maintenance of a septic system at the
taxpayer�s primary residence located within the watershed. �
���� The bill would require the DEP
Commissioner to delineate the geographic area encompassing Lake Hopatcong and
its watershed in which properties eligible for the tax dedication are located.
���� To be eligible for the deduction,
the bill would require a taxpayer to submit a receipt of work done and amounts
paid for septic system maintenance.� In addition, the bill would require the Director
of the Division of Taxation, in consultation with the DEP Commissioner, to adopt
standards by which taxpayers would demonstrate that they qualify for the tax deduction.
�
���� In the early summer of 2019,
the DEP detected cyanobacteria, a form of harmful algal bloom, in Lake
Hopatcong and subsequently advised against making any contact with the water.�
Exposure to these harmful algal blooms can cause a range of health effects,
including rashes, allergy-like reactions, flu-like symptoms, gastroenteritis,
respiratory irritation, skin rashes, and eye irritation.� A major contributor
to harmful algal blooms is excessive nutrient loading in the water caused by
runoff into Lake Hopatcong.� Primary sources of nutrients include septic
systems, lawn fertilizers, and animal wastes.� In a press release issued in
July 2019, the DEP urged property owners in the area to, among other things,
have a wastewater professional perform a comprehensive evaluation of their
septic system and fix any issues and have septic systems pumped out if this
hasn�t been done for three to five years.