Under what conditions are county and municipal authorities exempt from taxation?

County and municipal authorities in New Jersey are exempt from taxation when their properties are used for public purposes. This exemption is rooted in the principle that government agencies should not be taxed for activities that benefit the public or serve the community's interests. Public purposes typically include functions like providing essential services (e.g., roads, utilities), maintaining infrastructure, or fulfilling a civic duty, all aimed at enhancing the welfare of the community at large.

In contrast, when properties are utilized for private purposes, they do not meet the criteria for tax exemption, as they serve the interests of specific individuals or entities rather than the public. The notion of being "always exempt" or being exempt for "any type of purpose" does not align with the established legal framework, which distinguishes between public and private uses in terms of tax liability. Therefore, the defining factor for the tax exemption is the use of the property for public purposes.