Proposes constitutional amendment to allow lower property tax rate on improvements than on land.

SCR114

SENATE CONCURRENT RESOLUTION No. 114

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 12, 2026

Sponsored by:

Senator� ANGELA V. MCKNIGHT

District 31 (Hudson)

SYNOPSIS

���� Proposes constitutional amendment to allow lower
property tax rate on improvements than on land.

CURRENT VERSION OF TEXT

���� As introduced.

��

A
Concurrent Resolution

proposing to
amend Article VIII, Section I of the New Jersey Constitution by adding a new
paragraph.

����
Be It
Resolved
by the Senate of the State of New
Jersey (the General Assembly concurring):

���� 1.��� The following proposed
amendment to the Constitution of the State of New Jersey is agreed to:

�������������������������������� PROPOSED
AMENDMENT

���� Amend
Article VIII, Section I by adding a new paragraph 8 to read as follows:

���� 8.��� The
Legislature shall enact general laws to permit a municipality to adopt an
ordinance providing for a property tax system under which taxable improvements
are taxed at a lower rate than taxable land.� The general laws enacted to
implement this paragraph may limit the municipalities permitted to adopt an
ordinance under this paragraph to those municipalities in need of
infrastructure investment, according to standards established by the Legislature.�
The general laws enacted to implement this paragraph shall:

���� (a)
permit a municipality certain discretion in determining an appropriate
difference between the rate on taxable land and the lower rate on taxable
improvements;

���� (b)
permit an ordinance adopted pursuant to a law enacted under this paragraph to phase
in the adjusted tax rates over a period of years; and

���� (c)
establish a method to permit a municipality that adopts an ordinance,
authorized pursuant to this paragraph, to return to a single-rate property tax
system.

���� 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:

CONSTITUTIONAL AMENDMENT TO PERMIT PROPERTY TAXATION
OF IMPROVEMENTS AT LOWER TAX RATE THAN LAND

YES

Do you approve amending the
Constitution to allow a lower property tax rate on improvements than on land?�
The Legislature may create standards for certain municipalities to use dual
tax rates.

INTERPRETIVE
STATEMENT

NO

Currently, a single property tax
rate is applied to land and improvements.� Improvements consist of buildings
and other man-made conditions.� This amendment requires the Legislature to
allow municipalities to tax improvements at a lower rate than land.� The tax
rates would be set by local ordinance.� The Legislature may limit
participation to certain groups of municipalities.� Municipalities allowed to
use dual tax rates may phase in tax rate changes, and may return to the
single-rate system.�

STATEMENT

���� This resolution proposes a
constitutional amendment requiring the Legislature to allow certain
municipalities to tax improvements at a lower rate than land.� An improvement
refers to a building or other man-made condition.� Property taxes in New Jersey
are collected by municipalities, and are used to fund
county, school, municipal, and other local needs.

���� Currently, municipalities are
required to apply a single value-based tax rate to both land and improvements.�

This constitutional amendment directs the
Legislature to enact general laws allowing municipalities to adopt ordinances
under which improvements are taxed at a lower rate than land.� The Legislature
may allow all municipalities to participate, or limit participation to
municipalities in need of infrastructure investment, according to standards
established by the Legislature.

���� The implementing legislation
will permit participating municipalities to phase-in the changes over a period
of years.� The implementing legislation will also establish a method permitting
a municipality to return to a single property tax rate system.