Bill
Bill > S89
NJ S89
NJ S89Permits short-term tax exemption for certain improvements to dwellings damaged by natural disasters.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill would permit a municipality to adopt an ordinance declaring an area to be in need of rehabilitation if dwellings within the area were damaged by a natural disaster for which a state of emergency has been declared by the President of the United States or the Governor. Under current law, municipalities may provide property taxpayers a short-term property tax exemption or abatement on dwellings in areas in need of rehabilitation for a period of five years. An ordinance adopted under the bill would have to require that, in determining the value of an exemption, the assessor consider the additional value to those dwellings that is directly attributable to the additional space under those dwellings created by the elevation of those dwellings as not increasing the taxable value of those properties for a period of five years, notwithstanding that the market value of the real property to which the improvements are made is increased thereby. The ordinance may provide for a reduction of the exemption for each year of the exemption period. The bill also clarifies that during the exemption period, increases in value to dwellings that are not directly attributable to the additional space under dwellings created by the elevation of those dwellings, and which increase the value of those dwellings, must be reflected in the assessed value of those dwellings. The bill also requires that certain property tax notices include the value of an exemption granted under an ordinance adopted pursuant to the bill.
AI Summary
This bill allows municipalities to declare areas with homes damaged by a natural disaster, for which a state of emergency has been declared by the President or Governor, as areas in need of rehabilitation, which can then qualify for a property tax exemption. Under this bill, when a municipality adopts an ordinance for such an area, the tax assessor must exclude the increased value of a home that is solely due to the additional space created by elevating the dwelling (raising it to prevent future flood damage) from its taxable value for five years, even if the overall market value of the property increases. However, any other improvements to the home that increase its value during this five-year period will still be reflected in its assessed value. The bill also mandates that property tax notices must include the value of any exemption granted for these elevated dwellings, ensuring homeowners are aware of the tax relief.
Committee Categories
Housing and Urban Affairs
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S89 |
| BillText | https://pub.njleg.gov/Bills/2026/S0500/89_I1.HTM |
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