Sponsored by:
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Clarifies that property taxes are due and owing on tax-exempt real property leased to, or subject to an operating agreement or management agreement with, a person or business entity whose property is not exempt.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the taxation of certain real property and amending P.L.1949, c.177.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1949, c.177 (C.54:4-2.3) is amended to read as follows:
1. When real [estate] property that is exempt from taxation is leased to [another] a person or business entity, or subject to an operating agreement or management agreement with a person or business entity, whose property is not exempt, and the leasing of which, or operation of which under an operating agreement or management agreement with a person or business entity, does not make the real estate taxable, the leasehold estate or the operating agreement or management agreement, as appropriate, and the appurtenances shall be listed as the property of the lessee, or the person or business entity named in the operating agreement or management agreement thereof, as appropriate, or [his] the assignee, and assessed as real estate. Property taxes shall be due thereon and payable by the lessee, or the person or business entity subject to the operating agreement or management agreement, as appropriate, in the same manner as property taxes are due and payable on taxable real property as set forth in section 4 of P.L.1949, c.177 (C.54:4-2.6).
(cf: P.L.1949, c.177, s.1)
2. Section 4 of P.L.1949, c.177 (C.54:4-2.6) is amended to read as follows:
4. Taxes on such leasehold estate, or operating agreement or management agreement, as appropriate, shall be collected, accounted for, and the amount thereof to be paid to the county shall be determined and paid, as are taxes on real estate entered in the Added Assessment List, 19.
(cf: P.L.1949, c.177, s.4)
3. This act shall take effect immediately.
STATEMENT
This bill would clarify that property taxes are due and owing on tax-exempt real property leased to, or subject to an operating agreement or management agreement with, a person or business entity whose property is not exempt.