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 the Tax Court's interpretation in the case of *Verizon New Jersey Inc. v. Borough of Hopewell*, which incorrectly required telecommunications companies to meet a 51 percent service threshold annually to be subject to business personal property taxes. The legislation redefines "local exchange telephone companies" to include those that held a regional monopoly on landline service prior to the federal Telecommunications Act of 1996, ensuring that these companies are permanently liable for business personal property taxes regardless of their current market share.

Additionally, the bill stipulates that municipalities prevailing in court proceedings against local exchange telephone companies regarding business personal property taxation will be awarded attorneys' fees. This provision aims to alleviate the financial burden on municipalities that face litigation costs when defending their tax assessments. The bill is designed to stabilize the local property tax base and provide certainty for municipal budgets, reversing the unintended consequences of the Tax Court's ruling that had allowed telecommunications companies to evade taxation on their business personal property.