Budget & Taxes (Property Tax) in New Jersey

in committee · New Jersey · Senate Jan 13, 2026

S 708: Concerns assessment of farmland for property tax purposes.

This bill amends New Jersey's Farmland Assessment Act to clarify when farmland owners face "roll-back taxes" (additional taxes) after stopping agricultural use. It states that merely ceasing farming activity - without actively converting the land to non-farm use - will not trigger these taxes. Roll-back taxes, calculated as the difference between farmland tax rates and standard property tax rates for the current year and the two prior years, apply only if the land is actively converted to non-agricultural use. The bill also establishes a hardship exemption process, allowing farmers to petition for relief if temporary disruptions (e.g., due to weather or economic hardship) prevent ongoing farming, with assessors considering factors like the owner’s intent to return to farming. It directly affects New Jersey landowners who qualify for agricultural property tax assessments under the 1964 Act.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax

in committee · New Jersey · Senate Jan 13, 2026

S 1813: Requires cost-benefit analyses for long term tax exemption, and requires DCA to create database of exemptions; requires five-year tax exemption and abatement agreements to be filed with certain county officials.

This bill requires developers seeking long-term property tax exemptions (e.g., for urban renewal projects) to submit a cost-benefit analysis showing impacts on local government revenues and services, including effects on schools and municipal budgets. Municipalities must publish these analyses online within 30 days. It also mandates the state Department of Community Affairs to create a public database tracking all approved tax exemption agreements, including their financial details, sorted by municipality. The law directly affects developers, municipalities, and local taxing districts (like school boards) involved in tax exemption decisions. It aims to increase transparency around tax exemption approvals without changing the exemption process itself.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax Tax Incentives

in committee · New Jersey · Senate Jan 13, 2026

S 2513: Limits increase of assessed value of property subject to appeal judgment following implementation of reassessment.

This bill (S 2513) would limit how much a local government can increase a property's tax assessment after a successful appeal. It caps any post-appeal assessment increase at the district-wide average increase in property values, preventing disproportionate hikes for properties that won tax appeals. Property owners who successfully challenge assessments and local taxing districts (municipalities) would be directly affected. If a district exceeds this limit without justification, it must pay the property owner's legal fees and costs. The limit applies until the next full reassessment of all properties in the district.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax

in committee · New Jersey · Senate Jan 13, 2026

S 490: "S2 Appropriations Rescue Act"; appropriates $106.5 million to provide Emergency Supplemental Aid to certain school districts, including districts negatively impacted by effects of P.L.2018, c.67.

This bill appropriates $106.5 million from the Property Tax Relief Fund to provide Emergency Supplemental Aid to eligible New Jersey school districts. It targets districts that received less than $19,000 per resident student in 2024-2025 school aid, or those whose 2024-2025 aid was less than or only slightly higher ($200,000 max) than their 2023-2024 allocation. The aid amount for each qualifying district is calculated by multiplying $250 by its resident student count as of October 16, 2023. This funding directly aims to stabilize budgets for districts negatively impacted by P.L.2018, c.67 ("S2") school funding formulas.

Topics ✓ Budget & Taxes ✓ Education

Sub-Topics Property Tax School Funding

in committee · New Jersey · Senate Feb 12, 2026

S 2161: Increases amounts of certain payments in lieu of taxes paid for lands owned by State or nonprofit organization for recreation and conservation purposes.

This bill (S 2161) increases compensation payments to New Jersey municipalities for lost property tax revenue when the State or qualifying nonprofit organizations own land for recreation or conservation. It raises annual payments for the first 13 years after land acquisition (starting at 100% of prior tax value and decreasing annually), then transitions to higher per-acre rates after year 13 based on the percentage of such land in the municipality (e.g., $3-$40 per acre depending on whether land constitutes less than 20%, 20-40%, 40-60%, or over 60% of the municipality’s total area). The payments, funded from the General Fund, replace previous formulas and apply to lands owned by the State, nonprofits, or the Palisades Interstate Park Commission. Municipalities directly affected are those with significant State or nonprofit-owned recreation/conservation lands.

Topics ✓ Budget & Taxes ✓ Environment

Sub-Topics Property Tax Revenue State Budget Conservation Parks & Recreation

in committee · New Jersey · Senate Jan 13, 2026

S 2118: Revises criteria to establish base year for homestead property tax reimbursement after relocation.

This bill changes how the "base year" is calculated for New Jersey homeowners who relocate and qualify for homestead property tax reimbursements. It revises the rule so that when an eligible homeowner moves to a new primary residence, their base year (used to calculate tax refunds) becomes the first full tax year before the move - **but only for tax years starting on or after January 1, 2010**. This affects elderly or disabled homeowners who move within the state and meet income and residency requirements. The key change prevents the new base year rule from applying to tax years before 2010, maintaining the prior calculation for earlier relocations.

Topics ✓ Budget & Taxes ✓ Housing

Sub-Topics Property Tax Homeownership Property Taxes

in committee · New Jersey · Senate Jan 13, 2026

S 116: Requires State aid reduction to municipalities and school districts by amount of accumulated absences paid to employees upon their retirement.

This bill requires municipalities and school districts to annually report the amount paid to retiring employees for unused sick leave. The State Treasurer must then reduce the following year's state aid payments to these entities by that exact amount: for municipalities, this applies to Consolidated Municipal Property Tax Relief Aid, Energy Tax Receipts Property Tax Relief Aid, Extraordinary Aid, or Transitional Aid to Localities; for school districts, it reduces state school aid based on annual audit data. The policy directly affects local governments that provide retirement payments for accrued sick leave, ensuring state aid does not cover these costs. It creates a straightforward mechanism where reported unused sick leave payments automatically lower subsequent state funding.

Topics ✗ Budget & Taxes ✗ Education

Sub-Topics Audits & Accountability Property Tax

in committee · New Jersey · Senate Jan 13, 2026

S 765: Prohibits certain third-party property tax appeals.

This bill prohibits property taxpayers from appealing assessments or exemptions related to financial agreements between other taxpayers and local governments (such as tax abatements). It restricts appeals to only a taxpayer's own property, ending the ability to challenge assessments on neighboring properties or those tied to specific agreements. The bill does not affect local governments' right to appeal assessments on any property. Key changes include banning third-party appeals under the "Long Term Tax Exemption Law" and limiting appeals to one's own property valuation. This aims to reduce costly, complex appeals that create uncertainty in local government budgets.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax Tax Incentives

in committee · New Jersey · Senate Jan 13, 2026

SCR 64: Proposes constitutional amendment authorizing municipalities to provide partial property tax exemption of up to 15 percent of assessed value for primary residence of certain volunteer first responders.

SCR 64 proposes a constitutional amendment requiring New Jersey's legislature to create a law allowing municipalities to offer a partial property tax exemption of up to 15% on the assessed value of a primary residence. This exemption would apply specifically to active volunteer firefighters, first aid, or rescue squad members whose service benefits the municipality where they live. Municipalities would need to pass a separate ordinance to implement the exemption, and could choose to offer less than the 15% maximum. The amendment must be approved by voters before it can take effect.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax Tax Incentives

in committee · New Jersey · Senate Jan 13, 2026

S 1575: Requires State reimbursement to local government units for first-year uncollected property tax revenue attributable to veterans' property tax exemption.

This bill requires the state to reimburse local governments (municipalities, counties, school districts, and fire districts) for property tax revenue lost during the first year when a veteran qualifies for a 100% service-connected disability property tax exemption. It specifically covers veterans with qualifying disabilities (such as paraplegia, amputations, or total blindness) or their surviving spouses who meet the exemption criteria. Local governments must submit documentation to the state within 10 days of exemption approval, and the state treasurer must issue reimbursement within 10 days of each quarterly tax bill due date. The reimbursement applies only to the first tax year after exemption approval, not subsequent years. This change directly affects veterans receiving the exemption and local governments that previously absorbed the revenue loss.

Topics ✓ Budget & Taxes ✓ Education ✓ Veterans

Sub-Topics Property Tax Revenue Tax Incentives Veteran Healthcare Veteran Housing

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