NJ SCR114

Proposes amending Article VIII, Section I of the New Jersey Constitution to allow municipalities to tax property improvements (buildings and man-made structures) at a lower rate than land.

Legislature may limit participation to municipalities identified as needing infrastructure investment, based on standards the Legislature establishes.

Municipalities adopting the dual-rate system would have discretion in setting the difference between land and improvement tax rates.

Implementing laws must allow municipalities to phase in the adjusted tax rates over multiple years and provide a method to return to the traditional single-rate property tax system.

If approved by both legislative chambers, the amendment would be placed on the ballot at the next general election occurring more than three months after final legislative agreement.