Because there are many different types of exemptions permittedby statute, we will focus on the necessary ingredients forexemption and issues potentially confronting a non-profit or abuyer of its property that might affect its vested exemption frompaying property taxes. Under the New Jersey Constitution and TaxExempt Statute, a non-profit organization is exempt from payingreal estate taxes on the land and building it owns provided thatthe buildings are actually used to further charitable purposes.

The Tax Exemption Statute exempts property owned by non-profitsfrom taxation if: (1) the building(s) actually and exclusively isused for one of the designated purposes; (2) the land is necessaryfor the fair enjoyment of the building(s), is devoted to adesignated purpose and does not exceed five acres; and (3) thebuilding(s) or land is not used for profit and the organization isnot a profit-making institution.

In general, the New Jersey Tax Exemption Statute(N.J.S.A. 54:4-3.6 et seq.) requires that the buildings beexclusively used in the work of the organization and that the landalso be devoted to those purposes. However, as we will see,exceptions apply.