New Jersey § 52:18a-78

§ 52:18a-78.

a. All projects and other property of the authority, and projects erected upon land

owned by the authority if the projects have been financed, in whole or in part, directly

or indirectly, by bonds or notes of the authority and the projects are used and occupied

by State agencies, are declared to be public property devoted to an essential public

and governmental function and purpose and shall be exempt from all taxes of the State

or any political subdivision thereof; provided that when all or any part of a project

is leased, subleased or licensed to, or otherwise used under an arrangement providing

for the acquisition thereof by any person, firm, association, partnership or corporation,

other than a State agency, a local governmental agency or other public body the interest

created by the lease or other arrangement and the appurtenances thereto shall be listed

as the property of the lessee or the user under the other arrangement, or their respective

assignees, and be assessed and taxed as real estate, but this provision shall not

be deemed to modify or repeal in any respect any tax exemption or tax abatement that

the person, firm or corporation shall otherwise be entitled to with respect to the

property of the project or part thereof. All bonds or notes issued pursuant to this act are declared to be issued by a body

corporate and politic of the State and for an essential public and governmental purpose

and these bonds and notes, and the interest thereon and the income therefrom and from

the sale, exchange or other transfer thereof, and all funds, revenues, income and

other moneys received or to be received by the authority shall at all times be exempt

from taxation, except for transfer inheritance and estate taxes. b. Projects and property of the authority, and projects erected upon land owned by

the authority if the projects have been financed, in whole or in part, directly or

indirectly, by bonds or notes of the authority and the projects are used and occupied

by State agencies, shall be deemed to be “ State property ” under P.L.1977, c. 272 ( C. 54:4-2.2a et seq. ) and shall be assessed and subject to an in lieu tax payment provided in that act

unless the interest created by a lease, sublease or license or other arrangement is

subject to tax as real estate under this section.