| P.L.1991, c.431 with final retroactive
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| | first full year of operation under the
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| amendments effective August 5, 1992
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| | new Five-Year Exemption and Abatement
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| consolidated, into one more flexible law,
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| | Law, there were three types of property
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| the various long term tax exemption laws
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| | to which a qualified municipality (a
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| under which municipalities may agree with
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| | municipality with "areas in need of
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| private entities to undertake
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| | rehabilitation") could grant a partial
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| redevelopment projects in return for tax
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| | exemption and abatement for a five-year
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| exemptions.P.L.1991, c.441, effective for
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| | period.These property types
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| the first full tax year commencing after
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| | included:Homeowner improvements
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| its January 18, 1992 enactment,
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| | (including additions and enlargements)
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| consolidated the various five-year tax
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| | made to one-unit or two-unit residential
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| abatement and exemption laws into one,
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| | dwellings that were more than 20 years
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| more standardized law to govern all tax
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| | old. As determined by ordinance the
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| abatements and exemption regardless of
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| | first $4,000, $10,000 or $15,000 of
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| the type of structure.Long Term Tax
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| | increased value due to improvement on
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| Exemption LawPrior to 1993, which was the
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| | each unit could be exempted from taxation
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| first full year of operation governed by
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| | (see N.J.S.A. 54:4-3.72 to
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| the new Long Term Tax Exemption Law,
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| | 3.79).Commercial and industrial
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| under the provisions of
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| | improvements and construction projects
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| N.J.S.A.40:55C-40, the "Urban Renewal
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| | (with less than a 30% increase in
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| Corporation and Association Law of 1961,"
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| | building volume) could have the full
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| commonly known as the Fox-Lance Act, a
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| | assessed value of the improvement
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| qualified municipality (a municipality
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| | exempted with payments in-lieu of taxes
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| with "areas in need of rehabilitation")
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| | made at 2%of project cost or 15% of
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| could abate from 15 to 20 years the taxes
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| | annual gross revenues or an in-lieu of
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| on newly constructed industrial,
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| | tax payment phased-in. (see N.J.S.A.
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| commercial, cultural, or residential
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| | 54:4-3.94to 3.112).Multiple dwelling
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| projects of a corporation, with profits
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| | improvements or conversion of other types
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| in excess of the limited profits returned
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| | of structures to multiple dwellings could
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| to the municipality, or from 30 to 35
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| | have up to 30% of the full value of the
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| years for condominium projects.
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| | improvement or conversion alteration
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| Condominium projects were given 30 to 35
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| | exempted. No in-lieu of tax payment was
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| years in order to provide a realistic
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| | required (see N.J.S.A. 54:4-3.121 to
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| period for permanent financing. Also,
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| | 3.129).Commencing in 1993 the provisions
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| prior to 1993 under the provisions of
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| | of N.J.S.A. 40A:21-1 et seq., the
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| N.J.S.A.55:16-1 et seq., the
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| | "Five-Year Exemption and Abatement Law,"
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| "Limited-Dividend Nonprofit Housing
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| | which consolidated all provisions of the
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| Corporation or Association Law," a
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| | previous five-year abatement statutes,
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| qualified municipality could abate for up
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| | permitted a qualified municipality to
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| to 50 years the taxes on newly
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| | grant partial exemptions and abatements
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| constructed housing. Further, under
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| | on residential dwellings, non-residential
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| N.J.S.A.55:14I-1 et seq., a qualified
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| | structures and multiple dwellings in the
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| municipality could abate for up to 50
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| | same way the pre 1993 law did, with the
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| years the taxes on newly constructed
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| | following notable exceptions made to the
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| senior housing. Lastly, prior to 1993,
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| | new law:A new, single definition of
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| under the provisions of
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| | "areas in need of rehabilitation" was
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| N.J.S.A.40:55C-77, the "Urban Renewal
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| | established to govern all exemptions and
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| Nonprofit Corporation Law of 1965,"
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| | abatements which, if chosen, could enable
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| basically the same types of properties
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| | an entire municipality to be designated
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| and projects as the Fox-Lance Act could
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| | as an area in need of rehabilitation
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| be abated for 20 to 25 years with all
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| | (thus permitting new structures to
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| profits being returned to the
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| | facilitate infill construction).The new
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| municipality. In all cases under these
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| | five-year law also permitted, for the
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| property tax exemption laws in-lieu of
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| | first time, tax abatements and exemptions
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| tax payments were required.Commencing in
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| | for new construction of single family
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| 1993 the provisions of N.J.S.A.40A:20-1
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| | and multi-family dwelling units and
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| et seq. permitted a qualified
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| | non-residential structures rather than
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| municipality to abate the taxes on
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| | just improvements or enlargements to such
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| properties and projects in the same way
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| | properties.The new law also increased the
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| the pre 1993 law did with the following
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| | allowable maximum tax exemptions for the
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| notable exceptions:A new, flexible
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| | value added by an improvement from
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| in-lieu of tax formula was established
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| | $4,000, $10,000, and $15,000 to $5,000,
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| with a phasing-in of payments in-lieu of
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| | $15,000 and $25,000, respectively, as the
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| taxes to occur under both the percent of
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| | municipal ordinance may
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| gross rental formula and the percent of
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| | specify.Biography: Gerald 'Jerry' Dowgin
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| total project cost formula.The formulas
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| | "The Property Tax Doctor" and the author
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| for computing payment in-lieu of taxes
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| | of the Homeowner's Assessment Review
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| for both office projects and housing
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| | Guide ( a former tax assessor worked in
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| projects were changed. The minimum
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| | the field of public finance at the State
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| annual service charge for office
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| | and local levels in New Jersey for more
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| buildings was reduced from 15 to 10
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| | than three decades until his retirement
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| percent of the annual gross revenues of
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| | in 2001. As a Supervising Tax Analyst
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| the project or units of the project.
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| | in the Office of Research and Statistics
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| Municipalities retained the option of
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| | in the Division of Taxation in the New
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| computing the payment in-lieu of taxes at
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| | Jersey Department of Treasury he worked
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| no less than 2 percent of the total
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| | principally on local property tax issues.
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| project cost or total project units cost.
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| | Then he joined the Office of Legislative
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| For housing projects the annual service
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| | Services (OLS) in 1983 and served as the
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| charge was changed from a minimum of 15
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| | Secretary to the New Jersey Property Tax
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| percent to a maximum of 15 percent of
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| | Assessment Study Commission for four
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| annual gross revenue of the project or
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| | years. While working in the OLS, Local
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| from a minimum 2 percent to a maximum 2
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| | Government Section he researched,
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| percent of the total project cost or
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| | drafted, and estimated the cost of the
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| total project unit cost.The payment
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| | Senior Property Tax Freeze Bill which was
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| in-lieu of tax formulas remains basically
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| | signed onto law and worked on legislation
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| unchanged for all other types of
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| | that became law that virtually stopped
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| industrial, commercial or cultural
| |
| | the tax assessment practice of "Spot
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| projects.Five-Year Exemption and
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| | Assessments" in New Jersey that had
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| Abatement LawPrior to 1993, which was the
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| | treated many property taxpayers unfairly.
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