jacksonville mortgage refinancing: New Jersey's Tax Exempt Property

BRIEF HISTORY
Generally, before 1900 New Jersey local tax assessors rarely entered a complete list of tax-exempt property within its municipality to its tax rolls. Why would, nobody would have thought about the imposition of a property tax on government property, education, church or other origin used for charitable purposes. It makes little sense for property tax assessors early to spend resources to search, list and value of property tax free. Why the government to tax and other tax-exempt owners of property primarily serving public rather than private interests who just retired public money from one pocket and putting it in the other pocket, right?
Tax exemption cases brought before the courts in New Jersey after 1900 show many questionable claims property tax exemption were filed by non-profit organizations. Evaluators found that property owners organized tax exempt charitable and religious rights leased property tax exempt others to profit enterprises. At the same time, other educational institutions was far beyond the charges set forth in the provisions of its Charter to include under its umbrella such questionable property tax exemption used as polo fields for the use of students and other private polo teams. With increasing complaints about abuses of tax-exempt claims some local tax assessors began assessing property owners certain dubious educational, charitable and church property was not being used strictly for the purposes of tax exempt chartered.
Of course, these owners exempt from property taxes complained to their legislators in Trenton about the evils caused by the evaluator of local property taxes. His government representatives in Trenton then began to give some rules in the law of property tax for tax consultants to follow. Therefore, for different uses of exempt property, presumably based on merit to society from the use of a particular property, the law specifies different standards. School buildings, for example, had to be used effectively for the intended purposes, while the buildings for the work of the churches had to be really and exclusively for religious, etc, then Boards of Taxation and State Courts had to begin resolving disputes about what these terms mean in the actual application.
Today, the property tax exemption battle continues. If your church will be able to build a large building to lease to a service center for the benefit of day and with the rent money to pay the mortgage on the building? A private school requires a golf course for golfers who are not students when school is not for the cost of the golf course? These are the questions that local tax assessors, courts and government in Trenton daily struggles.
GOLD MINE MINE FIELD OR
Before the Committee on Tax Policy Tax Commissions in 1973 Cahill others created by the Legislature had looked only at the regime of tax-exempt property in New Jersey and took numerous accounts of perceived abuses of tax-exempt property. However, little could be done legislatively at that time because there was no tabulation State exempt property values in New Jersey, so the fiscal impact of local taxes of changes in the law could not be weighed by policy decision of the state government.
To address this issue the Tax Division, in 1971, at the request of the Commission on Fiscal Policy Cahill is responsible for collecting more than 100,000 properties listed by advisers exempt from local taxes on their lists of local tax exemption. The presentation of the Report of the Governor of Tax Policy Cahill the legislature was delayed so that the study exempt property could be completed because it was thought that this list could contain the pot of gold necessary to avoid major new tax increases to pay for property taxes. The study was completed and results were published in the Report of the Fiscal Policy Committee followed the recommendations in general did not meet the political and social needs of the time for a new source of income for tax relief to property.
However, although no new source of income for tax relief to property found for the Study of exempt property, large concentrations of exempted goods are in some cities and towns lead to the adoption of an aid program of State called the pilot program meant "payments in lieu of taxes." In essence, the State made payments to municipalities on the effective rate of municipal tax purposes of certain state-owned properties. Sate aid payments over the years were rarely fully funded in accordance with the formula set out in the law, because the program had its first level payment reduced by a fixed percentage for years the state budget. Then the pilot joined COMPTRA state aid program that, in effect locked both property values used to calculate funding, along with the local effective tax rates municipal effects used in the formula in a static level . That program COMPTRA consolidated more than a dozen state aid programs along with the driver in a state budget line item.
In 1985, the New Jersey Tax Assessment Study Commission considered the issue of Property Tax Exempt and determined that while exempt property owners paid a "fee ready and available" for your local water company to use the water up "a la carte" and charged for use thereof exempt property owners did not pay their municipal governments for their public works departments or police departments have public servants and their equipment "ready and available" to meet the needs of exempt property owners when necessary.
The Commission made estimates of the amount of revenue that could be raised if such statewide tax authority given to local governments by the state and recommended that the Legislature pass a law. Of course, the Legislature acted quickly to draft a legislative resolution indicates that the Legislature was unaware of and in no way supports such a user fee on churches and other nonprofit institutions for charitable and educational purposes.
EXPERIENCES AND FUTURE
Encourage local tax assessors to remain vigilant in granting tax exemptions only to owners of properties that meet the letter of the law. Do not try to impose user fees on tax-exempt property during daylight hours in Trenton. Partisan legislative staff should remind lawmakers that the clergy can speak from the pulpit on Sunday on proposals foolish and misguided user fee of legislators suggesting that user fees imposed on churches and falls in November elections Tuesday just two days short of the Sunday sermon.
If history is any predictor of the future, then you can see New Jersey State owned properties, such as the Art Garden Center has leased to state his name for profit. Maybe one day instead of New Jersey Atlantic City Expressway Highway will Trump or Turnpike Mack truck. It is even possible that one day New Jersey will sell your home State to a big company needed to increase revenue and then rent it back. Would that require more favorable treatment from the state to the business community, it may cause the eviction? Perhaps what it really comes down to the public vigilant watchdogs. Why not require the Division of Taxation to post on its website a list of goods exempt, by municipality, and finally property? Property tax is a battle, and tax advisers in New Jersey need the support of the public to enforce the letter of the law.
A New Jersey governor one day to sign a law allowing the sale, lease or naming rights owned to raise funds for a worthwhile purpose State. These revenues could be used to pay off the national debt in order to free up cash for the relief of property taxes. The cash flows of such activities could become a new source of annual state revenue. Once the State Government approved the new funding mechanism my guess is that local municipal governments and county do the same soon after. If state and local governments continue to tax the same things over and over again in hopes of finding new sources of revenue that will never be able to fully serve its citizens.
I also think it would be okay for the state to sell state assets certain property, provided that such sale will not jeopardize the future economic prosperity of the State or threaten the future security of its people. For example, the sale of the New Jersey Turnpike and Garden State Parkway would leave the business and the people of New Jersey that rely on these vital arteries at the mercy of a profit driven society. However, the sale and leaseback of a warehouse state would free money to pay the State debt that is eating into the state's ability to provide vital services and provide property tax relief. The state could even sell a state property and use some of the funds to invest in another property that has the potential to substantially increase its value in the future. My point is that state assets and debt management has a greater viability than now receives.

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Wednesday, December 26, 2012

New Jersey's Tax Exempt Property

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