Allows certain municipalities to establish lower property tax rate on improvements than land.

This bill allows certain New Jersey municipalities to adopt a property tax system that charges lower tax rates on building improvements than on the land itself. It primarily affects municipalities designated as needing infrastructure investment, which can implement the system immediately, while other municipalities must apply to the Division of Taxation for approval. The law requires that municipalities with significant open space, farmland, or environmentally sensitive land cannot adopt this system, and it permits local governments to gradually phase in or phase out the different tax rates over time.