New Jersey § 54:4-3

§ 54:4-3.

The Legislature finds and declares: a. The decision of the New Jersey Supreme Court on May 30, 2007, in University Cottage Club of Princeton New Jersey Corp. v. New Jersey Department of

Environmental Protection and the Borough of Princeton, 191 N.J. 38 (2007) , 1 which effectively granted to the University Cottage Club real property tax exempt

status under the historic site real property tax exemption law, P.L.1962, c. 92 ( C.54:4-3.52 et seq. ), and determined that revised requirements for an historic site real property tax

exemption contained in a supplementary law to the 1962 historic site real property

tax exemption law, approved by the Legislature and enacted as P.L.2004, c. 183 ( C.54:4-3.54a et seq. ) on December 22, 2004, did not apply to the University Cottage Club, requires the

Legislature to clarify its intent in approving that act . b. The court's interpretation of the intended effect of P.L.2004, c. 183 is contrary to the intent of the Legislature and as a result, corrective legislation

removing any question regarding the intent, scope and applicability of that act is

necessary and appropriate . c. The Legislature intended to preserve the tax exempt status of historic sites that

had received tax exempt status from the Commissioner of Environmental Protection prior

to enactment of the 2004 law because the owners of those properties relied upon the

tax exemption, and municipalities had already removed those properties from their

tax rolls. The Legislature intended to apply the standards set forth in P.L.2004, c. 183 to historic sites that were not previously certified as tax exempt by the Commissioner

of Environmental Protection. d. It is also important to clarify and expand upon the Legislature's intent to require

significant public access to any historic site determined to be eligible for an historic

site real property tax exemption, and to require that the nonprofit corporation that

owns the historic site must have a primary mission as an historical organization to

research, preserve and interpret history and architectural history. It was the Legislature's intent in 2004, and remains the Legislature's intent today,

that the granting of property tax exempt status to an historic site, which imposes

an additional property tax burden on the residents of the taxing district in which

the historic site is located, because the budgetary needs of the taxing district must

be fulfilled regardless of the number of taxpaying properties located in the taxing

district, must be contingent on the public's ability to regularly use and enjoy the

historic site and also understand the history of the historic site through the research,

preservation and interpretation of the history of the site, including the site's architectural

history, prepared by its nonprofit corporate owner. It was not the intent of the Legislature in 2004, and it is not the intent of the

Legislature today, that historic site real property tax exemptions be granted to private

clubs and organizations that provide such minimal access and benefit to the public

that financially support them that the access and benefit is of nominal or insignificant

value to the public. e. The Commissioner of Environmental Protection erred significantly in relying on

informal standards rather than rules and regulations promulgated under the “Administrative

Procedure Act,” P.L.1968, c. 410 ( C.52:14B-1 et seq. ), to award real property tax exemptions to historic sites; therefore, the Legislature

is transferring all authority over the historic site real property tax exemption approval

and certification process to the Director of the Division of Taxation in the Department

of the Treasury, who has the expertise to administer this real property tax exemption

along with the input and participation of municipal tax assessors. f. It is important to preserve the integrity of the historic site real property tax

exemption and so it is necessary and proper to amend the effective date of P.L.2004, c. 183 to clarify that the 2004 act is applicable to properties designated as historic sites

after July 1, 1999. Of the over 35,000 properties designated as historic sites in New Jersey, only two

property owners, applied for real property historic site tax exempt status after July

1, 1999. In P.L.2004, c. 183 the Legislature intended that the stricter public access requirements should apply

to any historic site that had not been certified to be real property tax exempt prior

to the effective date of the law, December 22, 2004. 1

See, University Cottage Club or Princeton New Jersey Corp. v. New Jersey Dept. of

Environmental Protection 191 N.J. 38, 921 A.2d 1122 (2007).