This bill aims to clarify and stabilize 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 prevent the erosion of the local property tax base and ensure that municipalities can rely on these taxes for their budgets.

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 the definition of "local exchange telephone companies" in the tax code and includes provisions to retroactively apply these changes to January 1, 2007, thereby reinforcing the obligation of these companies to contribute to the local tax base.