Subjects most State property to local property taxation beginning on July 1, 2026.

S 3326 ends the tax-exempt status for most property owned by the State of New Jersey and its agencies/authorities, requiring them to pay local property taxes starting July 1, 2026. This affects State-owned buildings, land, and facilities (like offices or campuses) that were previously exempt, while leaving local government property (counties, schools) unchanged. The bill allows exceptions if a certification proves tax assessment would violate bondholder covenants signed before July 1, 2026, and requires State payments in lieu of taxes for those parcels. Delinquent taxes would be enforced like other property taxes, and the State cannot reduce municipal aid to offset these new tax payments.