Did you know that certain water pollution control facilities are eligible for tax exemption after certification by the Department? State law provides that equipment, facilities or devices constructed or installed for the purpose of abating or preventing water pollution can be exempted from taxation. This exempts pollution control facilities from personal property business tax and from real estate taxes.

The law allowing this exemption is N.J.S.A. 54:4-3.56 et seq.

A certification from the Department is needed to exempt the water pollution abatement or prevention equipment, facility, or device from taxation. The Department issues certifications after it finds: 1) that the equipment, facility or device constructed or installed, or to be constructed or installed, was designed primarily for the control or abatement of water pollution and 2) that the equipment, facility or device is suitable and reasonably adequate for such purpose.

The tax exemption becomes effective for the tax year after certification. Once the certification becomes effective, it remains effective during the use of the water pollution abatement facility (i.e., they don't have to renew yearly). Certifications can be revoked or modified for cause.

For applications for certification, or for further information, contact: