| BRIEF HISTORYGenerally, prior to 1900 New
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| | program into one State Budget line
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| Jersey local tax assessors seldom entered
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| | item.In 1985 the New Jersey Tax
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| a complete list of tax exempt property
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| | Assessment Study Commission looked into
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| located within their municipality on
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| | the Tax Exempt Property problem and
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| their tax rolls. Why should they, nobody
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| | determined that while exempt property
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| would ever think about levying a property
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| | owners paid a "ready and available fee"
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| tax on governmental, educational, church
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| | to their local water utility to use water
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| or other property used for charitable
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| | up "on demand" and be billed for its
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| purposes. It made little sense to those
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| | usage those same exempt property owners
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| early property tax assessors to spend the
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| | did not pay their municipal governments
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| resources to find, list and value such
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| | for their public work departments or
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| tax exempt property. Why, taxing
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| | police departments to have those public
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| government and other tax exempt property
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| | servants and their equipment "ready and
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| owners that served fundamentally public
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| | available" to meet the needs of the
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| rather than private interests would be
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| | exempt property owners when required.The
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| just taking publics money from one pocket
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| | Commission made estimates as to the
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| and putting it in the other pocket,
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| | amount of revenue that could be raised
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| right?Tax exemption cases brought before
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| | Statewide if such taxing authority was
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| the New Jersey Courts after 1900 show
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| | given to municipal governments by the
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| many questionable property tax exemption
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| | Sate and recommended that the Legislature
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| claims were filed by not for profit
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| | adopt such a law. Of course the
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| entities. Assessors found that tax
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| | Legislature acted swiftly to draft a
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| exempt property owners organized for
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| | legislative resolution stating that the
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| charitable and religious purposes leased
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| | Legislature had no knowledge of and in no
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| their tax exempt property rights to other
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| | way supported such a user fee on churches
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| for profit businesses. At the same time
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| | and other not for profit charitable and
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| other educational institutions went way
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| | educational institutions.LESSONS LEARNED
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| beyond the charges set forth in their
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| | AND THE FUTUREEncourage local tax
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| charter's provisions by including under
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| | assessors to remain vigilant in granting
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| their tax exemption umbrella such
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| | tax exemptions to only those property
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| questionable property uses as polo fields
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| | owners who meet the letter of the law.
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| for the use of their students and other
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| | Do not attempt to impose user fees on tax
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| private polo teams. With increasing
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| | exempt property during sunlight hours in
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| complaints about the abuses of tax exempt
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| | Trenton. Partisan Legislative staff
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| claims some local tax assessors began to
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| | should remind their legislators that the
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| assess certain questionable educational,
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| | clergy can speak from the pulpit on
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| charitable and church property owners for
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| | Sunday about the foolish and wrong headed
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| property that was not being used strictly
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| | user fee proposals of legislators who
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| for their chartered tax exempt
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| | suggest imposing user fees on churches
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| purposes.Of course, these tax exempt
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| | and the November elections falls on a
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| property owners complained to their
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| | Tuesday only two short days from the
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| legislators in Trenton about the wrongs
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| | Sunday sermon.If history is any
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| caused them by the local property tax
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| | prediction of the future then New Jersey
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| assessor. Their government
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| | may see more State owned properties like
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| representatives in Trenton then started
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| | the Garden State Art Center have its name
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| to provide some standards in the property
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| | leased out for a profit. Perhaps one day
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| tax law for the tax assessors to follow.
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| | instead of the Atlantic City Expressway
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| So, for different uses of exempt
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| | New Jersey will have the Trump Expressway
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| property, presumably based on the
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| | or the Mack Truck Turnpike. It is even
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| worthiness to society of a particular
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| | possible that one day New Jersey will
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| property's use, the law specified
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| | sell its Sate House to a large
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| different standards. School buildings
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| | corporation to raise needed revenues and
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| for example had to be actually used for
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| | then rent it back. Would that require
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| their intended purpose, while buildings
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| | more friendly Sate treatment of the
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| for the work of churches had to be
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| | corporate community, else eviction could
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| actually and exclusively used for
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| | ensue? Perhaps it really comes down to
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| religious purposes, etc. Then County
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| | the public being vigilant watch dogs.
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| Boards of Taxation and the State Courts
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| | Why not require the Division of Taxation
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| had to begin settling disputes over what
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| | to post on its web page a listing of Tax
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| those terms meant in actual
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| | Exempt Property, by municipality, by
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| application.Today, the property tax
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| | ownership and by purpose? Property
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| exemption battle continues. Should your
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| | taxation is a battle, and the tax
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| church be able to build a large building
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| | assessors in New Jersey need the support
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| to lease to a For Profit Day Care Center
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| | of the public to enforce the letter of
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| and with the rent money pay off the
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| | the law.A New Jersey Governor one day may
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| building's mortgage? Does a private
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| | sign a law permitting the sale, lease, or
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| school need a golf course for golfers who
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| | granting of naming rights on State Owned
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| are not students when school is out so as
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| | Property to raise money for some
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| to defray the expense of the golf course?
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| | worthwhile State purpose. Such revenue
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| These are the questions that local tax
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| | could be used to pay off State Debt so as
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| assessors, the courts and the government
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| | to free up cash for property tax relief.
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| in Trenton struggles with daily.GOLD MINE
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| | The payment streams from such activities
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| OR MINE FIELDPrior to the Cahill Tax
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| | could become a new source of annual State
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| Policy Commission in 1973 other Tax
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| | revenue. Once the State government
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| Commissions created by the Legislature
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| | adopted this new funding mechanism my
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| had looked solely into the legal status
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| | guess is that the local municipal and
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| of tax exempt property in New Jersey and
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| | county governments would follow suit soon
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| took extensive testimony concerning
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| | thereafter. If State and Local
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| perceived tax exempt property abuses.
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| | governments keep doing the same fiscal
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| Nevertheless, little could be done
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| | things over and over and hoping to find
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| legislatively at that time because there
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| | new sources of revenue they will never be
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| was no Statewide tabulation of Exempt
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| | able to fully serve their citizens.I also
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| Property values in New Jersey and
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| | think it would be all right for the State
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| therefore the fiscal tax impact locally
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| | to sell certain State owned property, so
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| of changes in the law could not be
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| | long as that sale did not jeopardize the
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| weighed by the State Government decision
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| | future economic prosperity of the State
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| makers.To remedy that problem the
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| | or threaten the future safety of its
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| Division of Taxation in 1971, at the
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| | people. For example, the sale of the New
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| request of the Cahill Tax Policy
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| | Jersey Turnpike or Garden State Parkway
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| Commission took on the job of collecting
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| | would leave the business and people in
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| over 100,000 exempt properties listed by
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| | New Jersey who depend on those vital
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| Local Tax Assessors on their local Tax
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| | arteries at the mercy of a profit driven
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| Exempt Lists. The submission of Governor
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| | corporation. However, the sale and lease
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| Cahill's Tax Policy Report to the
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| | back of a State warehouse would free up
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| legislature was delayed so that the
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| | cash to pay off State debt that is eating
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| Exempt Property Study could be completed
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| | into the State's ability to provide vital
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| because it was thought that such a list
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| | services and provide property tax relief.
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| could contain the pot of gold needed to
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| | The State might even sell a State
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| avert major new tax increases to pay for
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| | property and use part of the proceeds to
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| property tax relief. The study was
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| | invest in other property that holds the
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| finished and its results were reported in
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| | potential to increase substantially in
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| the ensuing Tax Policy Commission Report
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| | value in the future. My point is that
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| with recommendations that in large did
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| | State asset and debt management needs a
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| not meet the political and social needs
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| | higher viability than it now
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| of the day for a new source of revenue
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| | receives.Biography: Gerald ‘Jerry'
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| for property tax relief.However, while no
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| | Dowgin "The Property Tax Doctor" and the
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| new revenue source for property tax
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| | author of the Homeowner's Assessment
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| relief was found because of the Exempt
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| | Review Guide ( a former tax assessor
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| Property Study, the large concentrations
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| | worked in the field of public finance at
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| of exempt property found in certain
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| | the State and local levels in New Jersey
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| cities and towns lead to the adoption of
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| | for more than three decades until his
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| a State Aid Program called the PILOT
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| | retirement in 2001. As a Supervising
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| Program which stood for "payments in lieu
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| | Tax Analyst in the Office of Research and
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| of taxes." In essence, the State made
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| | Statistics in the Division of Taxation in
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| payments to municipalities at the
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| | the New Jersey Department of Treasury he
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| effective municipal purpose tax rate for
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| | worked principally on local property tax
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| certain properties owned by the State.
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| | issues. Then he joined the Office of
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| Those Sate Aid payments over the years
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| | Legislative Services (OLS) in 1983 and
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| were seldom fully funded according to the
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| | served as the Secretary to the New Jersey
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| formula set forth in the law because the
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| | Property Tax Assessment Study Commission
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| program had its pay out level reduced by
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| | for four years. While working in the
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| a fixed percentage for many State Budget
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| | OLS, Local Government Section he
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| years. Then the PILOT program was
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| | researched, drafted, and estimated the
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| incorporated into the COMPTRA State aid
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| | cost of the Senior Property Tax Freeze
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| program which in effect locked up both
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| | Bill which was signed onto law and worked
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| the property values used to calculate its
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| | on legislation that became law that
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| funding along with the local effective
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| | virtually stopped the tax assessment
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| municipal purposes tax rates used in the
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| | practice of "Spot Assessments" in New
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| formula at a static level. That COMPTRA
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| | Jersey that had treated many property
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| program consolidated more than a dozen
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| | taxpayers unfairly.
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| State aid programs along with the PILOT
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