This bill addresses the taxation of business personal property belonging to local exchange telephone companies in New Jersey, clarifying the legislative intent behind the 1997 amendments to the relevant tax laws. The bill aims to rectify a misinterpretation by the Tax Court in the case of *Verizon New Jersey Inc. v. Borough of Hopewell*, which suggested that local exchange telephone companies must meet a 51 percent service threshold annually to be subject to business personal property taxes. The legislation redefines "local exchange telephone companies" to include telecommunications carriers that held a regional monopoly on landline service prior to the federal Telecommunications Act of 1996, thereby ensuring that these companies are permanently liable for business personal property taxes regardless of their current market share.

Additionally, the bill stipulates that if a municipality prevails in legal proceedings regarding the taxation of business personal property against a local exchange telephone company, the municipality and any related amicus entities are entitled to recover attorneys' fees from the company. This provision aims to alleviate the financial burden on municipalities that face litigation costs related to tax assessments. The bill is designed to stabilize the local property tax base and provide certainty for municipal budgeting by ensuring that the business personal property of telecommunications companies remains part of the tax base. The act will take effect immediately and is retroactive to January 1, 2007.