S1265



SENATE, No. 1265

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STATE OF NEW JERSEY

214th LEGISLATURE

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INTRODUCED FEBRUARY 8, 2010

Sponsored by:

Senator FRED H. MADDEN, JR.

District 4 (Camden and Gloucester)

SYNOPSIS

Exempts from commercial and industrial property taxation the value of new capital improvements for security enhancement purposes.

CURRENT VERSION OF TEXT

As introduced.

An Act concerning property tax exemption of certain capital improvements and supplementing chapter 4 of Title 54 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in this act:

"Board of appeals" means the municipal or county board provided for under the State Uniform Construction Code Act and regulations promulgated thereunder.

"Enforcing agency" means the enforcing agency in any municipality provided for under the State Uniform Construction Code Act, P.L.1975, c.217 (C.52:27D-119 et seq.) and regulations promulgated thereunder.

"Security enhancement" means any new capital improvement made to real property in the form of any structural alteration for the purpose of protecting the property against terrorist attacks, theft, breaking and entry, vandalism or any other criminal activity, or deterring criminal activity on property grounds.

2. Any new capital improvement to real property, which has been certified by the enforcing agency as a security enhancement, shall be exempt from property taxation under Title 54 of the Revised Statutes.

3. a. No certification shall be made by the enforcing agency pursuant P.L. , c. (C. ) (pending before the Legislature as this bill), except upon written application therefor, which application shall be made under oath on a form prescribed by the Director of the Division of Taxation in the Department of the Treasury, and provided for the use of an applicant of a security enhancement exemption by the local enforcing agency. The enforcing agency may at any time inquire into the right of an applicant or claimant to the exemption allowed under section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), and may require the filing of a new application or the submission of any proof necessary to determine the right of an applicant or claimant to the exemption. The enforcing agency shall have the right to make an inspection of the premises which are the subject of an application or claim for exemption under that section.

b. The enforcing agency shall certify a capital improvement as being a security enhancement pursuant to section 2 of P.L. , c.    (C.     ) (pending before the Legislature as this bill) whenever the structural alteration serves primarily to protect the property against terrorist attacks, crime, or to deter criminal activity on property grounds. The certificate shall contain information identifying the capital improvement and the cost thereof, and shall be in a form and detail prescribed by the Director of the Division of Taxation in the Department of the Treasury. The certificate shall be delivered to the applicant therefor, with a copy retained on file by the enforcing agency, and a copy thereof shall be sent to the assessor of the taxing district in which the property is located. The exemption from taxation for the security enhancement shall become effective for the tax year following the year in which certification has been granted, and thereafter during its use primarily for security purposes.

c. The owner of real property which is equipped with a certified security enhancement may have exempted annually from the assessed valuation of the real property a sum equal to the remainder of the assessed valuation of the real property with the security enhancement included, minus the assessed valuation of the real property without the security enhancement.

4. The enforcing agency, after giving notice to the holder of a security enhancement certificate for tax exemption granted pursuant to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), may revoke that certificate whenever any of the following appears:

a. The certificate was obtained by fraud or misrepresentation;

b. The claimant for tax exemption has failed substantially to proceed with the installation of the security enhancement;

c. The security enhancement to which the certificate relates has ceased to be used for the primary purpose of securing the property against terrorist attacks, crime or deterring criminal activity and is being used for a different primary purpose;

d. In the opinion of the enforcing agency, the security enhancement is not suitable and reasonably adequate for the purpose of providing protection against crime.

5. Any person aggrieved by any action of the enforcing agency may seek review before the board of appeals. Any person aggrieved by any action of the assessor or of the Director of the Division of Taxation may seek a review before the Director of the Division of Taxation pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

6. Subject to the "Administrative Procedure Act" P.L.1968, c.410 (C.52:14B-1 et seq.), the Director of the Division of Taxation, in consultation with the Commissioner of Community Affairs, shall promulgate the rules and regulations necessary for the purpose of effectuating the provisions of this act.

7. This act shall take effect immediately.

STATEMENT

This bill would provide a property tax exemption for the value attributable to new “security enhancements” made to real property. Security enhancements are defined to mean any new capital improvement made to real property in the form of any structural alteration for the purpose of protecting the property against terrorist attacks, theft, breaking and entry, vandalism or any other criminal activity, or deterring criminal activity on property grounds.

The exemption would be certified by the local enforcement agency, and could be revoked due to a finding of fraud, misrepresentation, or when the security enhancement has ceased to be used for the primary purpose certified.

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