The bill, SB 492-FN, empowers the Department of Military Affairs and Veterans Services to lease or license property under its jurisdiction, stipulating that any lease or license exceeding seven years must receive prior approval from the governor and executive council. It introduces new legal language indicating that property leased or licensed to private entities that are not tax-exempt will be subject to local property taxes, with the lessee responsible for these payments. The bill also outlines the consequences for nonpayment and grants municipalities the authority to enforce tax collection through liens and legal action.

Furthermore, the bill establishes a dedicated, nonlapsing Property Fund for the Department, which will be funded through appropriated funds, gifts, grants, or donations. This fund is intended for the acquisition and maintenance of property, operational expenses, and payments related to outstanding bonds, with expenditures requiring approval from the governor and council. While the bill is expected to generate some revenue for the Property Fund, the fiscal impact remains indeterminable as the Department currently does not lease or license property to private entities. Overall, the bill aims to enhance property management for the Department while ensuring local governments can collect taxes on leased properties.

Statutes affected:
Introduced: 110-B:28, 6:12
SB492 text: 110-B:28, 6:12