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Bill

A 3216

Requires taxation as real property of improvements on publicly owned real property used for purpose and protection of public water supply.

2026-2027 Regular Session Introduced by Brian Bergen and 3 co-sponsors

Improvements on publicly owned watershed land used for public water supply would be taxable real property by the local municipality, aligning with private land rules.

Introduced, Referred to Assembly Environment and Solid Waste Committee
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Bill Summary · A 3216

Summary of Bill A-3216 (Session 222) – New Jersey

Purpose and Intent

Bill A-3216 seeks to reform how property taxes apply to improvements on publicly owned land used for the purpose and protection of a public water supply. Specifically, it would subject improvements on such publicly owned watershed land to real property taxation by the municipality in which the improvements are located. The stated goal is to provide property tax relief to municipalities that host watershed land owned by public entities, by aligning the taxation treatment of improvements with that applied to privately owned watershed land.

Key Provisions

  • Taxation of improvements on public watershed land:

    • The bill changes current law so that improvements (including buildings, dams, and other structures) situated on land owned by counties, municipalities, or other public agencies and used for the purpose and protection of a public water supply would be taxable as real property by the local municipality where the improvements are located.
    • This applies to improvements on public watershed land, even though the land itself is typically taxable under existing rules.

  • Consistency with private watershed taxation:

    • Under current law, improvements on privately owned watershed land are taxed, while on publicly owned watershed land they are not. A-3216 would bring the taxation treatment of improvements on public watershed land in line with private watershed land.

  • Amendments to relevant statutes:

    • R.S.54:4-3.3 is amended to specify that lands used for the public water supply, including associated buildings, dams, or structures, are taxable as real property (to the extent subject to taxation by the local taxing district), whereas other public use properties remain exempt.
    • P.L.1957, c.183 (C.40:14B-63) is amended to clarify that except for lands and improvements used for the public water supply, public utility systems and municipal authority properties generally remain tax-exempt; the treatment of water-supply-related improvements is adjusted toward taxation.

  • Effective date: Immediate upon enactment.

Who Is Affected

  • Municipalities and local tax assessors:
    • They would assess and levy property taxes on improvements located on publicly owned watershed land, in the same manner as on private watershed land.
  • Public agencies and counties/municipalities with watershed lands:
    • Properties currently exempt or not taxed for improvements on public water supply land would face new tax obligations for those improvements.
  • Property owners and taxpayers in watershed areas:
    • Indirectly affected through potential increases in local property tax revenue from improvements on publicly owned watershed land.

Procedural and Timeline Notes

  • Introduced: January 13, 2026
  • Committee referral: Assembly Environment and Solid Waste Committee
  • Sponsor caucus: Several co-sponsors listed (including Brian Bergen, Dawn Fantasia, Mike Inganamort, Jay Webber)
  • Effective date: Immediate upon enactment, per the bill’s text

Impact Considerations

  • The bill shifts a portion of tax burden from the state/public sector to local taxing districts by taxing improvements on publicly owned watershed land.
  • It could influence development, maintenance, or investment decisions related to public water supply infrastructure on publicly owned lands.
  • Local tax revenues are anticipated to increase due to taxation of improvements, potentially affecting municipal budgets and funding for public services.

This summary provides an overview of A-3216’s objective, main changes, affected parties, and timing. For detailed analysis, refer to the bill’s statutory amendments and the accompanying fiscal notes (if any) once available.

Compiled from official sources — confirm details with the bill’s official record.

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