N.J. Admin. Code § 18:12-10.2

Current through Register Vol. 56, No. 21, November 4, 2024

Section 18:12-10.2 - Real and personal property subject to the local property tax

(a) For purposes of local property taxation, real property subject to tax includes all lands and improvements thereon.

(b) For purposes of local property taxation, real property includes personal property affixed to real property or an appurtenance thereto, if the personal property meets both of the following criteria:

1. Removal or severance of the personal property would cause material injury to either the real property or the personal property itself; and

2. The personal property is ordinarily intended to be affixed permanently to real property.

(c) Based on the criteria set forth in (b) above:

1. Machinery, apparatus, or equipment used or held for use in business constitutes real property subject to local property taxation only if either the machinery, apparatus, or equipment is a structure, or the machinery, apparatus, or equipment's primary purpose is to enable a structure to support, shelter, contain, enclose, or house persons or property. However, pipe racks, piping, and electrical wiring up to the point of connections with the machinery, apparatus, or equipment of a production process meet the requirements of (b) above, and are subject to local property taxation as real property; and

2. Storage tanks with capacities in excess of 30,000 gallons are deemed to meet the requirements of (b) above, and are subject to local property taxation as real property. Storage tanks with small capacities may or may not constitute real property, depending on whether they meet the requirements of (b) above, and regardless of whether a production process occurs within the tank.

(d) Personal property subject to local property taxation includes only:

1. Machinery, apparatus or equipment of a petroleum refinery that is directly used to manufacture petroleum products from crude oil in any of the series of petroleum refining processes commencing with the introduction of crude oil and ending with refined petroleum products; and

2. Tangible goods and chattels, exclusive of inventories, used in the business of local exchange telephone, telegraph, and messenger systems, companies, corporations, or associations that were subject to tax as of April 1, 1997, under P.L. 1940, c.4 (N.J.S.A. 54:30A-16 et seq.), as amended, now repealed. A local exchange telephone company means a telecommunications carrier providing dial tone and access to 51 percent of a local telephone exchange as of January 1 of the pre-tax year.

(e) Notwithstanding the provisions of N.J.S.A. 54:4-1, an outdoor advertising sign required to be permitted pursuant to the Road Sign Control and Outdoor Advertising Act (N.J.S.A. 27:5-5 et seq.), the sign's supporting structure having the primary purpose of supporting the outdoor sign, its other constituent parts, and the foundation if any to which the supporting structure is attached, are considered real property subject to local property taxation.

N.J. Admin. Code § 18:12-10.2

Amended by 50 N.J.R. 664(a), effective 1/16/2018