Establishes "New Jersey Commission to Reform the Assessment and Taxation of Residential Real Property."

A4055

ASSEMBLY, No. 4055

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 12, 2026

Sponsored by:

Assemblyman� ALEX SAUICKIE

District 12 (Burlington, Middlesex, Monmouth and Ocean)

SYNOPSIS

���� Establishes �New Jersey Commission to Reform the
Assessment and Taxation of Residential Real Property.��

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

establishing a commission to study the
assessment and taxation of residential real property and supplementing Title 52
of the New Jersey Statutes.

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

���� 1.� The Legislature finds and
declares:

���� a.� The property tax burden in
this State has become untenable for families, senior citizens, first-time
homeowners, and renters, and it is past time for this burden to be lifted from
the backs of New Jersey�s residents.�

���� b. �On August 20, 2024, the
Tax Foundation published an article by Audrey Yushkov titled �Property Taxes by
State and County, 2024.�� This article notes that of the 15 counties in the
United States with the highest median property tax payments (exceeding $10,000),
seven of those counties are located in New Jersey:� Bergen, Essex, Hunterdon,
Morris, Passaic, Somerset, and Union.

���� c.� That article also noted
that in calendar year 2022, New Jersey had the highest effective tax rate on
owner-occupied property in the nation.

���� d.� In 2024, for the first
time in New Jersey history, the average

property tax bill was more than
$10,000.

���� e.� Combined with other cost
drivers, including utilities and insurance, living in New Jersey has become
financially hazardous to the health and well-being of the State�s property
taxpayers.

���� f.� Because this situation has
taken decades to occur, it will take a thoughtful and meaningful process to
develop solutions to these problems.� Therefore, a commission to study the
property tax burden of homeowners and develop solutions to lower residential
property taxes is necessary and appropriate.

���� 2.� a.� There is hereby
established a commission in, but not of, the Department of the Treasury, to be
known as the �New Jersey Commission to Reform the Assessment and Taxation of
Residential Real Property.�

���� b.� (1)� The commission shall
examine the property tax system in New Jersey in its entirety, including but
not limited to the assessment and collection of property taxes, the funding of
county government, municipal government, school districts, and fire districts
in the State, and shall identify ways in which the system can be revised and improved
in order to reduce the property tax burden on residential real property owners
in the State.

���� (2)� The commission shall
recommend such amendments to the New Jersey Constitution and revisions to
statutory law, as necessary, to:� eliminate inequities in the current system of
property taxation regarding the assessment of residential real property; ensure
greater uniformity in the application of property taxes on residential real
property; reduce residential property taxes as an overall share of local revenue;
lessen the dependence of local government on residential property taxes; and establish
alternative means to permanently and reliably fund local government services,
including education funding.

���� (3)� As part of its study, the
commission may: examine the functions, duties, operations, and programs of
local units of government; review statutes, regulations, ordinances,
resolutions, opinions, orders, and agreements that govern the imposition,
assessment, and collection of property taxes; and recommend exemptions,
deductions, and other benefits that reduce or offset a taxpayer�s property tax
liability.� The commission shall also study and analyze property tax assessment
and collection mechanisms in other states, and shall evaluate systems of
property tax reform that have been proposed or implemented in other states.

���� c.� The commission shall issue
a final report of its findings, conclusions, and recommendations no later than
18 months following its organization.� The final report shall be submitted to
the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1).� The commission�s final report shall identify any pending legislation
that the commission recommends for adoption by the Legislature, as well as any
changes to the New Jersey Constitution for submission to the voters in addition
to such other recommendations as the commission deems necessary.� The
commission�s final report shall be made available to the public electronically,
through a link prominently displayed on the official website of the Department
of the Treasury.

���� d.� The commission shall
expire 30 days following the date of the issuance of its final report.

���� 3.� a.� The commission shall
consist of 11 voting members as follows:

���� (1) �the State Treasurer, ex
officio, or the State Treasurer�s designee;

���� (2)� �one public member
appointed by the President of the Senate;

���� (3)� one public member
appointed by the Speaker of the General Assembly;

���� (4)� one public member
appointed by the Senate Minority Leader;

���� (5)� one public member
appointed by the Assembly Minority Leader; and

���� (6)� six public members
appointed by the Governor, of whom at least two members shall reside in each of
the northern, central, and southern regions of the State, respectively, and at
least one member shall reside in an urban area, a suburban area of the State,
and a rural area of the State, respectively.

���� b.� When appointing public
members, the appointing authority shall select professionals who have
knowledge, expertise, and practical experience in county and municipal
government, economic analysis, governmental finance and fiscal management, real
property assessment and valuation, and the implementation, practice,
administration, and regulation of property tax policy.� No public member shall
be a nominee for, or hold, an elective office.

���� c.� Public members of the
commission shall serve until the commission issues its final annual report to
the Governor and the Legislature.� Any vacancy in the membership of the
commission shall be filled in the same manner as the original appointment was made.�
Any member of the commission may be removed for cause by the appropriate
appointing authority.� The members shall serve without compensation but shall
be reimbursed for necessary expenses incurred in the performance of their
duties, subject to the availability of funds therefor.

���� 4.� a.� The commission shall
organize as soon as practicable following the appointment of its members to
elect a chairperson and to select a secretary, who need not be a member of the
commission.� The presence of six members of the commission shall constitute a
quorum.� The commission may conduct business without a quorum, but may only
vote on recommendations when a quorum is present.� The commission may adopt
rules of procedure and operation in furtherance of its responsibilities.� The
commission may meet at the call of its chairperson at the times and in the
places it may deem appropriate and necessary to fulfill its duties, and may
conduct public hearings at such place or places as it may designate.

���� b.� The commission may divide
itself into such subcommittees and task forces as may be appropriate, which
subcommittees and task forces may include persons other than members of the
commission, such as academicians, government officers, representatives of
business, or other professionals and may enter into such cooperative agreements
as it deems necessary to accomplish its purposes.� Persons serving on task
forces who are not members of the commission shall serve at the appointment of
the chairperson and shall be non-voting participants in the task forces.� The
commission may receive reports and testimony from independent experts, other
qualified individuals, and members of the general public.

���� 5.� a.� The commission shall
be entitled to appoint an executive director and a staff, and the commission
may call to its assistance and avail itself of the services or employees of any
State, county, or municipal department, board, bureau, commission or agency or
authority as it may require and as may be available for its purposes, and to
employ counsel and contract for professional and consulting services, and
employ stenographic and clerical assistants, and incur traveling and other
miscellaneous expenses as it may deem necessary, in order to perform its
duties, and as may be within the limits of funds appropriated or otherwise made
available for its purposes.

���� b.� The staff of the
commission shall be within the unclassified service of the State, and their
compensation shall be determined by the commission within the limitations of
funds appropriated or otherwise made available for its purposes.

���� c.� The commission may make
use of existing studies, surveys, data, and other materials in the possession
of any State agency or authority, and such materials in the possession of any
county, municipality, or political subdivision of the State, other than the
records and files of the Director of the Division of Taxation that are
confidential under R.S.54:50-8.� Each state agency, authority, county,
municipality, and political subdivision of the State shall make any information
and materials available to the commission as it may require to perform its
responsibilities under this act.

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

STATEMENT

���� This bill establishes a commission
in, but not of, the Department of the Treasury, to be known as the �New Jersey
Commission to Reform the Assessment and Taxation of Residential Real Property,�
to examine the property tax system in New Jersey in its entirety and identify
ways in which the system can be revised and improved in order to reduce the
property tax burden on New Jersey residents who own residential real property.

���� The bill directs the
commission to recommend such amendments to the New Jersey Constitution and revisions
to statutory law as may be necessary to:� eliminate inequities in the current
system of property taxation regarding the assessment of residential real
property; ensure greater uniformity in the application of property taxes on
residential real property; reduce residential property taxes as an overall
share of local revenue; lessen the dependence of local government on residential
property taxes; and establish alternative sources of revenue to permanently and
reliably fund local government services, including education funding.

���� The commission would include
11 voting members, appointed as follows:� (1) the State Treasurer, ex officio,
or the State Treasurer�s designee; (2) one public member appointed by the
President of the Senate; (3) one public member appointed by the Speaker of the
General Assembly; (4) one public member appointed by the Senate Minority
Leader; (5) one public member appointed by the Assembly Minority Leader; and (6)
six public members appointed by the Governor, of whom at least two members
reside in each of the northern, central, and southern regions of the State, and
at least one member resides in an urban area,� suburban area, and rural area of
the State, respectively.� The bill requires each public member to have
knowledge, expertise, and practical experience in county and municipal
government, economic analysis, governmental finance and fiscal management, real
property assessment and valuation, and the implementation, practice,
administration, and regulation of property tax policy.� A public member may not
be a nominee for, or hold, an elective office.

���� The bill requires the
commission to issue a final report of its findings, conclusions, and
recommendations no later than 18 months following its organization, and
provides that the commission would expire 30 days following the date of the issuance
of that report.� The report is to be made available to the public electronically,
through a link prominently displayed on the official website of the Department
of the Treasury.