This bill aims to clarify the taxation of business personal property belonging to local exchange telephone companies in New Jersey, particularly in light of a 2012 Tax Court decision that misinterpreted the legislative intent behind the 1997 amendments to the relevant tax statute. The bill asserts that local exchange telephone companies, defined as telecommunications carriers that held a regional monopoly on landline service prior to the federal Telecommunications Act of 1996, are required to pay business personal property taxes regardless of the percentage of local exchange service they provide. This change is intended to stabilize the property tax base for municipalities and prevent the erosion of local tax revenues that has occurred due to the Tax Court's interpretation.

Additionally, the bill stipulates that if a municipality prevails in a court case regarding the taxation of business personal property against a local exchange telephone company, the municipality and any related amicus entities will be awarded attorneys' fees as costs to the telephone company. The bill amends R.S.54:4-1 to include specific language regarding the definition of local exchange telephone companies and the conditions under which they are subject to taxation, thereby reinforcing the original intent of the 1997 amendments. The act is set to take effect immediately and is retroactive to January 1, 2007.