STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblyman ANTHONY CHIAPPONE
District 31 (Hudson)
SYNOPSIS
Urges NY and NJ Congressional delegations to sponsor federal legislation requiring Port Authority of New York and New Jersey to make payments in lieu of taxes to municipalities.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Assembly Resolution urging the members of the New York and New Jersey Congressional delegations to sponsor federal legislation amending the interstate compact establishing the Port Authority of New York and New Jersey to require the Port Authority to make payments in lieu of taxes to municipalities in which it owns property.
Whereas, The states of New York and New Jersey have cooperated in the operation of the seaport, rail, and other transportation facilities vital to regional trade in and around New York City since 1834; and
Whereas, Due to the substantial increase in trade handled by facilities in New York City and Northern New Jersey, New York and New Jersey agreed to establish the “Port Authority of New York” (now know as the “Port Authority of New York and New Jersey,” referred to hereafter as “Port Authority”) to facilitate the efficient flow of commerce throughout the region; and
Whereas, Since its inception, the Port Authority of New York and New Jersey has acquired title to a significant amount of high value real property in both states; and
Whereas, This real property is not subject to taxation by the municipality in which it is located, resulting in a substantial loss of revenue for these municipalities and an increased tax burden on their residents; and
Whereas, The Port Authority could remediate this burden by making payments in lieu of taxes (PILOTs) to the municipalities in which the Port Authority owns real property; and
Whereas, The payment of PILOTs by the Port Authority requires an amendment to the interstate compact establishing the Port Authority and therefore, the members of the New York and New Jersey Congressional delegations are respectfully requested to sponsor legislation providing for such an amendment in the United States Congress; and, now therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. The General Assembly of the State of New Jersey respectfully requests that the members of the New York and New Jersey Congressional delegations sponsor federal legislation modifying the interstate compact establishing the Port Authority of New York and New Jersey to allow the Port Authority to make payments in lieu of taxes to municipalities in which the Port Authority owns real property.
2. Duly authenticated copies of this resolution, signed by the Speaker of the General Assembly and attested to by the Clerk thereof, shall be transmitted to the Governor of the State of New York, the Governor of the State of New Jersey, each member of the Port Authority Board of Commissioners, and each member of the Congress of the United States representing New York and New Jersey.
STATEMENT
This resolution requests that the members of the New York and New Jersey Congressional delegations sponsor federal legislation amending the interstate compact between New York and New Jersey that established the Port Authority of New York and New Jersey. The amendment would allow the Port Authority to negotiate with a municipality in which it owns real property to make payments in lieu of taxes to the municipality. The Port Authority is not required to pay property taxes, which increases the tax burden on residents of municipalities which host Port Authority property. The Port Authority could significantly reduce the tax burden on these residents by making payments in lieu of taxes to the municipalities where it owns real property.