Requires a surety bond for contractors and subcontractors where no public fund has been established for the financing of a public improvement

2025 Regular Session Introduced by Pat Fahy and 1 co-sponsor

Bill S 4840 boosts payments to NJ municipalities for tax-exempt conservation lands, increasing support from $2 to $40 per acre, enhancing local budgets and services.

COMMITTED TO RULES

Summary of Bill S 4840

Bill Number: S 4840
Title: Increases amounts of certain payments in lieu of taxes paid for lands owned by State or nonprofit organization for recreation and conservation purposes.
Status: Introduced in the Senate, Referred to Senate Environment and Energy Committee
Introduced: November 10, 2025
Sponsor: Senator Paul D. Moriarty (District 4 - Atlantic, Camden, and Gloucester)
Classification: Bill
Subject: Environment, Land Use

Purpose and Intent

Bill S 4840 aims to increase the payments made by the State of New Jersey to municipalities for lands owned by the State or qualifying nonprofit organizations that are designated for recreation and conservation purposes. The intent is to ensure that municipalities do not suffer financial losses due to the tax-exempt status of these lands.

Key Provisions

Increased Payments:

The bill proposes to amend existing payment structures established under P.L.1999, c.152.
Payments in lieu of taxes (PILOT) will be increased as follows:
- For municipalities where less than 20% of the land is owned for recreation and conservation: from $2 to $3 per acre.
- For municipalities with 20% to less than 40%: from $5 to $7.50 per acre.
- For municipalities with 40% to less than 60%: from $10 to $15 per acre.
- For municipalities with 60% or more: from $20 to $40 per acre.

Payment Timeline:

The State will make these payments annually on October 1 for a period of 13 years following the acquisition of the land.
The first year's payment will equal the last assessed tax amount prior to acquisition, with subsequent years receiving a percentage of that amount.

Exemption from Roll-back Tax:

Lands previously assessed under agricultural use will not incur roll-back taxes upon acquisition, ensuring municipalities are not penalized financially.

Funding Source:

Payments will be drawn from the General Fund, not from constitutionally dedicated funds.

Use of Funds:

Municipalities must apply the received payments to the same purposes as other tax revenues, ensuring that the funds support local needs.

Impact

Affected Parties:

Municipalities with lands owned by the State or qualifying nonprofit organizations will benefit from increased financial support.
The bill is particularly relevant for areas with significant conservation land, which may otherwise struggle with budget shortfalls due to lost tax revenue.

Financial Implications:

The increased payments are designed to offset the financial impact on municipalities, potentially enhancing local budgets and services.

Procedural Aspects

The bill was introduced on November 10, 2025, and has been referred to the Senate Environment and Energy Committee for further consideration. The timeline for further legislative action will depend on the committee's review and subsequent votes.

This summary provides an overview of Bill S 4840, highlighting its purpose, key provisions, and potential impacts on municipalities in New Jersey.