54:4-3.6d - Lease of tax exempt property - New Jersey Statutes

54:4-3.6d.  Lease of tax exempt property    The provisions of section R.S. 54:4-3.6 shall not be construed to disallow a  college, school, academy, or seminary which is accorded exemption from taxation  as a nonprofit organization under the section from leasing a building or a  portion thereof, or a portion of its property which is regularly utilized for  tax exempt purposes, to an organization or business during seasonal periods  when such building or property is not being utilized by the college, school,  academy or seminary in furtherance of tax exempt purposes, provided that:

    a.  The income derived from the lessee of such building or property is expended in furtherance of the organization's exempt purpose or purposes;

    b.  The income received from the lease transaction is not primarily a profit  seeking transaction, but remains a  "de minimis"  operation not materially  affecting the overall pursuit of the tax exempt organization's principal  purpose;  and

    c.  No lease under the provisions of this section shall be of a duration for  a period of more than 4 consecutive months.

     L.1983, c. 204, s. 1, eff. June 6, 1983.