2009 New Jersey Code
TITLE 40 - MUNICIPALITIES AND COUNTIES
Section 40:14A
40:14A-31 - Taxation exemption

40:14A-31.  Taxation exemption
    Every sewerage system and all other property of a sewerage authority are hereby declared to be public property of a political subdivision of the State and devoted to an essential public and governmental function and purpose and shall be exempt from all taxes and special assessments of the State or any subdivision thereof.  All bonds are hereby declared to be issued by a political  subdivision of this State and for an essential public and governmental purpose  and to be a public instrumentality, and such bonds, and the interest thereon  and the income therefrom, and all service charges, funds, revenues and other  moneys pledged or available to pay or secure the payment of such bonds, or  interest thereon, shall at all times be exempt from taxation except for  transfer inheritance and estate taxes and taxes on transfers by or in  contemplation of death.

     L.1946, c. 138, p. 672, s. 31, eff. April 23, 1946.
 
40:14A-31.1.Eligibility for annual host municipality benefit; calculation 1. Notwithstanding the provisions of any law, rule or regulation to the contrary, a municipality with a population greater than 6,150 persons but less than 6,600 persons, according to the latest federal decennial census, located in a county of the fifth class with a population exceeding 500,000 persons, according to the latest federal decennial census, and in which is located a wastewater treatment facility, sludge dewatering facility and sludge incineration facility, owned or operated by a regional sewerage authority pursuant to the provisions of P.L.1946, c.138 (C.40:14A-1 et seq.), and which facilities serve more than one municipality, shall be entitled to an annual host municipality benefit in an  amount determined by multiplying $0.06 times each 1,000 gallons of sewerage processed at the wastewater treatment plant per year that was generated by the municipality which hosts the facilities, according to the calculations as prepared by the consulting engineer to the regional sewerage authority.  The total amount of each year's benefit shall be rounded to the nearest $1.00.

L.1995,c.358,s.1.
 
40:14A-31.2.Payment of benefit
2.  a.  An authority subject to the provisions of this act shall annually pay the appropriate municipality the full amount of the benefit provided for in this act, and a recipient municipality may anticipate this amount for the purposes of preparing its annual budget.  All cash payments shall be appropriated by the municipality in accordance with the provisions of the "Local Budget Law," N.J.S.40A:4-1 et seq.  The authority responsible for paying the benefit specified under this act may, subject to the prior agreement of the recipient municipality, provide such benefit to the municipality in the following manner:

(1) Notwithstanding the provisions of section 31 of P.L.1946, c.138 (C.40:14A-31), as payment in lieu of taxes on the land on which the wastewater treatment plant, dewatering plant and sludge incineration facility are situated, and such payment shall be due and owing at the same time as the third quarterly payment of property taxes is due and owing pursuant to R.S.54:4-66;

(2) As an exemption of all or part of the fees and charges for the treatment of all wastewater generated within the boundaries of the municipality;

(3) As a lump sum cash payment or payments, according to a schedule established by the governing body of the recipient municipality; or

(4) Any combination thereof.

b. The payment of a host community benefit under this section shall be included as a cost of operation and maintenance for which rents, rates, fees or other charges are collected by the authority pursuant to section 8 of P.L.1946, c.138 (C.40:14A-8).

L.1995,c.358,s.2.
 
40:14A-31.3.Benefit constitutes personal obligation of authority
3. The host municipality benefit provided for under this act shall constitute a personal obligation of the appropriate authority, and shall be enforced through civil action pursuant to the New Jersey Court Rules.

L.1995,c.358,s.3.