New Jersey § 58:21-6

§ 58:21-6.

To the end that municipalities may not suffer loss of taxes by reason of the acquisition

and ownership by the State of New Jersey of property therein, the State Treasurer

upon certification of the Commissioner of Conservation and Economic Development shall

pay annually on October 1 to each municipality in which property is acquired pursuant

to this act (a) a sum equal to that last paid as taxes upon such land for the taxable

year immediately prior to the time of its acquisition and (b) in addition, for a period

of 13 years following such acquisition the following amounts: in the first year a

sum of money equal to that last paid as taxes upon improvements upon such land for

the taxable year immediately prior to the time of its acquisition; and thereafter

the following percentages of the amount paid in the first year, to wit, second year

92%; third year 84%; fourth year 76%; fifth year 68%; sixth year 60%; seventh

year 52%; eighth year 44%; ninth year 36%; tenth year 28%; eleventh year 20%;

twelfth year 12%; thirteenth year 4%. All sums of money received by the respective municipalities as compensation for loss

of tax revenue pursuant to this section shall be applied to the same purposes as is

the tax revenue from the assessment and collection of taxes on real property of the

said municipalities, and to accomplish this end such sums shall be apportioned in

the same manner as the general tax rate of the municipality for the tax year preceding

the year of receipt. The State shall be reimbursed for payments required to be made by this section out

of the proceeds received for the sale of water supplied by said system. The State Treasurer shall also pay to any county or municipality the cost of relocating

any municipal or county roads made necessary by reason of the acquisition or use of

property pursuant to this act.