STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator JOSEPH PENNACCHIO
District 26 (Morris and Passaic)
SYNOPSIS
Provides gross income tax deductions for membership fees, dam project assessments, and potable water system project assessments paid to lake associations.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act providing gross income tax deductions for membership fees, dam project assessments, and potable water system project assessments paid to lake associations, and supplementing Title 54A of New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A taxpayer shall be allowed to deduct from the taxpayer’s gross income for the taxable year, an amount equal to the total paid during the taxable year by a taxpayer to a lake association for membership, dam project assessments, and potable water system project assessments.
b. As used in this section:
“Dam project assessment” means an assessment that a lake association imposes on members to acquire funding for the construction of new dams or repair of existing dams.
“Lake association” means an organization of property owners within a fixed or defined geographical area in New Jersey with deeded or other rights to utilize, with similarly situated owners, various lakefront properties, which lakefront properties are not open to the general public, other than bona fide guests of a member of the private lake or private community lake association.
“Potable water system project assessment” means an assessment that a lake association imposes on members to acquire funding for the repair or construction of systems to ensure safe drinking water.
2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1 next following the date of enactment.
STATEMENT
This bill provides gross income tax deductions for individuals who pay membership fees, dam project assessments, or potable water system assessments to lake associations in New Jersey. This bill is effective immediately and applies to all taxable years beginning on or after January 1 next following enactment.