New Jersey § 5:10-18

§ 5:10-18.

a. All projects and other property of the authority, except an off-track wagering

facility or account wagering system facility established pursuant to P.L.2001, c. 199 , is hereby declared to be public property devoted to an essential public and governmental

function and purpose and shall be exempt from all taxes and special assessments of

the State or any political subdivision thereof; provided, however, that when any

part of the project site not occupied or to be occupied by facilities of the project

is leased by the authority to another whose property is not exempt and the leasing

of which does not make the real estate taxable, the estate created by the lease and

the appurtenances thereto shall be listed as the property of the lessee thereof, or

his assignee, and be assessed and taxed as real estate. All bonds or notes issued pursuant to the act are hereby declared to be issued by

a body corporate and public of the State and for an essential public and governmental

purpose and such bonds and notes, and the interest thereon and the income therefrom,

and all funds, revenues, income and other moneys received or to be received by the

authority and pledged or available to pay or secure the payment of such bonds or notes,

or interest thereon, shall at all times be exempt from taxation except for transfer,

inheritance and estate taxes. b. To the end that there does not occur an undue loss of future tax revenues by reason

of the acquisition of real property by the authority for the meadowlands complex the

authority annually shall make payments in-lieu-of-taxes to the municipality in which

such property is located in an amount computed in each year with respect to each such

municipality by multiplying the total amount to be raised by real property taxation

in each such year by a fraction, the numerator of which is the amount of real property

taxes assessed against the property acquired by the authority in the tax year in which

this act becomes effective and the denominator of which is the total amount to be

raised by real property taxation in such municipality in the tax year in which this

act becomes effective. Such payments shall be made in each year commencing with the first year subsequent

to the year in which such real property shall have been converted from a taxable to

an exempt status by reason of acquisition thereof by the authority. c. The authority is further authorized and empowered to enter into any agreement or

agreements with any county or municipality located in whole or part within the Hackensack meadowlands

whereby the authority will undertake to pay any additional amounts to compensate for

any loss of tax revenues by reason of the acquisition of any real property by the

authority for the meadowlands complex or to pay amounts to be used by such county or municipality in furtherance of the development of the Hackensack meadowlands,

including the meadowlands complex. Every such county and municipality is authorized and empowered to enter into such agreements

with the authority and to accept payments which the authority makes thereunder. d. All payments to municipalities pursuant to subsections b. and c. shall be treated

as payments in-lieu-of-property taxes for all purposes of article 9 of P.L.1968, c.

404 ( C.13:17-60 to 13:17-76 ).