New Jersey § 55:19-40

§ 55:19-40.

The exercise of the powers granted by P.L.1996, c. 62 ( C. 55:19-20 et al.) shall constitute the performance of an essential governmental function and

the authority shall not be required to pay any taxes or assessments upon or in respect

of a project, or any property or moneys of the authority, and the authority, its projects,

property and moneys and any bonds and notes issued under the provisions of P.L.1996, c. 62 ( C. 55:19-20 et al.), their transfer and the income therefrom, including any profit made on the

sale thereof, shall at all times be free from taxation of every kind by the State

except for transfer, inheritance and estate taxes and by any political subdivision

of the State; provided, that any person occupying a project whether as lessee, vendee

or otherwise shall, as long as title thereto shall remain in the authority, pay to

the political subdivision in which such project is located a payment in lieu of taxes

which shall equal the taxes on real and personal property, including water and sewer

service charges or assessments, which such person would have been required to pay

had it been the owner of such property during the period for which such payment is

made and neither the authority nor its projects, properties, money or bonds and notes

shall be obligated, liable or subject to lien of any kind for the enforcement, collection

or payment thereof. If and to the extent the proceedings under which the bonds authorized to be issued

under the provisions of P.L.1996, c. 62 ( C. 55:19-20 et al.) so provide, the authority may agree to cooperate with such person occupying

a project, in connection with any administrative or judicial proceedings for determining

the validity or amount of such payments and may agree to appoint or designate and

reserve the right in and for such person to take all action which the authority may

lawfully take in respect of such payments and all matters relating thereto, provided

such person shall bear and pay all costs and expenses of the authority thereby incurred

at the request of such person or by reason of any such action taken by such person

on behalf of the authority. If such person occupying a project has paid the amounts in lieu of taxes required

by this section to be paid, such person shall not be required to pay any such taxes

for which a payment in lieu thereof has been made to the State or to any political

subdivision, any other statute to the contrary notwithstanding.