NJ S3889

Authorizes New Jersey municipalities to adopt a "land-based property tax system" where improvements (buildings) are taxed at a lower rate than land to discourage speculation and encourage redevelopment of vacant urban areas.

Current and former urban enterprise zone municipalities may implement the system immediately upon the bill's operative date without an application process.

Other municipalities may apply to the Director of the Division of Taxation for approval starting 7 years (84 months) after the operative date, with applications prohibited for municipalities where developable lands are used substantially for open space, farmland, or environmental preservation.

Municipalities may phase in the rate differential gradually over multiple years and may later return to a single-rate system through ordinance.

The bill remains inoperative until New Jersey voters approve a constitutional amendment authorizing this two-tier property tax approach.