New Jersey SCR 114: Proposes constitutional amendment to allow lower property tax rate on improvements than on land.

Bill Text

SCR114 

SENATE CONCURRENT RESOLUTION No. 114 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

INTRODUCED MARCH 12, 2026

Sponsored by:

Senator� ANGELA V. MCKNIGHT

District 31 (Hudson)

SYNOPSIS

���� Proposes constitutional amendment to allow lower 
property tax rate on improvements than on land. 

CURRENT VERSION OF TEXT 

���� As introduced.

�� 

A 
Concurrent Resolution proposing to 
amend Article VIII, Section I of the New Jersey Constitution by adding a new 
paragraph.

���� Be It 
Resolved by the Senate of the State of New 
Jersey (the General Assembly concurring):

���� 1.��� The following proposed 
amendment to the Constitution of the State of New Jersey is agreed to:

�������������������������������� PROPOSED 
AMENDMENT

���� Amend 
Article VIII, Section I by adding a new paragraph 8 to read as follows:

���� 8.��� The 
Legislature shall enact general laws to permit a municipality to adopt an 
ordinance providing for a property tax system under which taxable improvements 
are taxed at a lower rate than taxable land.� The general laws enacted to 
implement this paragraph may limit the municipalities permitted to adopt an 
ordinance under this paragraph to those municipalities in need of 
infrastructure investment, according to standards established by the Legislature.� 
The general laws enacted to implement this paragraph shall:

���� (a) 
permit a municipality certain discretion in determining an appropriate 
difference between the rate on taxable land and the lower rate on taxable 
improvements;

���� (b) 
permit an ordinance adopted pursuant to a law enacted under this paragraph to phase 
in the adjusted tax rates over a period of years; and

���� (c) 
establish a method to permit a municipality that adopts an ordinance, 
authorized pursuant to this paragraph, to return to a single-rate property tax 
system.

���� 2.��� When this proposed 
amendment to the Constitution is finally agreed to pursuant to Article IX, 
paragraph 1 of the Constitution, it shall be submitted to the people at the 
next general election occurring more than three months after the final 
agreement and shall be published at least once in at least one newspaper of 
each county designated by the President of the Senate, the Speaker of the 
General Assembly and the Secretary of State, not less than three months prior 
to the general election.

���� 3.��� This proposed amendment 
to the Constitution shall be submitted to the people at that election in the 
following manner and form:

���� There shall be printed on each 
official ballot to be used at the general election, the following:

���� a. In every municipality in 
which voting machines are not used, a legend which shall immediately precede 
the question as follows:

���� If you favor the proposition 
printed below make a cross (X), plus (+), or check (a) in the square opposite the word "Yes." If you are 
opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the 
word "No."

���� b.��� In 
every municipality the following question:

 CONSTITUTIONAL AMENDMENT TO PERMIT PROPERTY TAXATION 
 OF IMPROVEMENTS AT LOWER TAX RATE THAN LAND

 YES

 Do you approve amending the 
 Constitution to allow a lower property tax rate on improvements than on land?� 
 The Legislature may create standards for certain municipalities to use dual 
 tax rates.

 INTERPRETIVE 
 STATEMENT

 NO

 Currently, a single property tax 
 rate is applied to land and improvements.� Improvements consist of buildings 
 and other man-made conditions.� This amendment requires the Legislature to 
 allow municipalities to tax improvements at a lower rate than land.� The tax 
 rates would be set by local ordinance.� The Legislature may limit 
 participation to certain groups of municipalities.� Municipalities allowed to 
 use dual tax rates may phase in tax rate changes, and may return to the 
 single-rate system.� 

STATEMENT

���� This resolution proposes a 
constitutional amendment requiring the Legislature to allow certain 
municipalities to tax improvements at a lower rate than land.� An improvement 
refers to a building or other man-made condition.� Property taxes in New Jersey 
are collected by municipalities, and are used to fund county, school, municipal, and other local needs.

���� Currently, municipalities are 
required to apply a single value-based tax rate to both land and improvements.� 
This constitutional amendment directs the 
Legislature to enact general laws allowing municipalities to adopt ordinances 
under which improvements are taxed at a lower rate than land.� The Legislature 
may allow all municipalities to participate, or limit participation to 
municipalities in need of infrastructure investment, according to standards 
established by the Legislature.

���� The implementing legislation 
will permit participating municipalities to phase-in the changes over a period 
of years.� The implementing legislation will also establish a method permitting 
a municipality to ret