Bill > S4279

This bill amends the "Five-Year Exemption and Abatement Law" to increase property tax exemption amounts for improvements to certain dwelling units that are more than 20 years old. Currently, municipalities can adopt ordinances that exempt the first $5,000, $15,000, or $25,000 of improvement value from taxation; this bill triples those amounts to $15,000, $45,000, or $75,000. The exemption continues to apply only to single dwelling units and not multiple dwelling units, and it remains in effect for five years from the time of improvement. The bill allows municipalities to not only fully exempt these specified improvement values from tax assessment increases but also potentially provide a graduated abatement schedule, with annual abatement amounts not exceeding 30% of the exemption value. The changes will take effect immediately and apply to exemptions and abatements granted beginning on January 1 of the first full tax year after enactment, effectively encouraging property owners to invest in improving older residential properties by reducing their tax burden during the initial five years after making improvements.

Housing and Urban Affairs

https://www.njleg.state.nj.us/bill-search/2024/S4279