Subjects most State property to local property taxation beginning on July 1, 2022.

This bill ends the tax exemption for most property owned by the New Jersey State, its agencies, and authorities, requiring them to pay local property taxes starting July 1, 2022. Exceptions apply if a certification is filed showing that removing the exemption would harm bondholder rights under pre-2022 agreements, in which case the property remains subject to state payments in lieu of taxes. Delinquent taxes on State property would be enforced like standard tax liens. Local government property (counties, municipalities, school districts) remains exempt, and the State cannot offset local tax payments against formula aid except for properties now subject to taxation.